Boston Consulting Group: An Overview

This essay is a comparative analysis of the strategies adopted by BCG, KPMG, and Infosys as part of the plans to address the challenges in the global consulting market. The paper identifies dynamics such as competition, market regulations, currency fluctuations, evolving technological conditions, increasing empowerment of the customers, and reusable assets as some of the challenges that must be addressed strategically by the consultancies to remain profitable. Some of the established strategies adopted by the firms include the fact that KPMG focuses on offering its clients a comprehensive support necessary for establishing cross-border and cross-cultural management systems and functional applications. Infosys emphasizes on being the client navigator as they ideate, plan, and execute their journey of a digital transformation. The BCG’s strategy entails a customized approach in which the organization combines the deep insight of the clients in their respective markets and collaboration at all levels of business operations. A number of similarities and differences have been observed in the strategies applied by the three organizations. A major similarity is the fact that all the businesses face similar competitive and external environmental conditions. On the other hand, some of the differences include the organizational sizes and the services that are offered. In conclusion, the analysis indicates that the consulting management firms continuously adopt strategic approaches for not only gaining competitive advantage but also as necessary tools for accomplishing sustainable and profitable operations.

Introduction

The modern business environment is challenging for businesses that must quickly learn to embrace changes in both the local and global markets. Some of the aspects of the changing landscape include the increasing globalization and the emerging information and communication technologies. Similarly, there is changing consumer dynamics in the digitized markets with further influences arising from fierce competition strategies that are adopted by rivals (Cusumano, Kahl, and Suarez 2015, p. 559). The consulting industry also faces similar trends and challenges with the need to attract and retain clients being some of the primary objectives of the sector. The consulting firms must, for instance, adapt quickly to the significant transitions in the business environment regarding technology and legislation while aiming at retaining competitive edge while focusing on sustainability and long-term growth.

The other forces that are significantly affecting the consulting firms include software-as-a-service (SaaS), increasing empowerment of the customers, and reusable assets. Such dynamics are likely to affect the sector within the next five years (Nguyen, Newby, and Macaulay 2015, p. 208). The dynamics are likely to cause changes altering the traditional revenue models while shifting power within the companies’ partnership structures. Furthermore, it is expected that the dynamics will alter the pure delivery models as well as reducing the pure strategy projects. Other challenges facing the sector include the increasing segmentation of the markets with the businesses required to adequately address the specific needs in the sectors (Grant 2016, p. 12). The growth of the digital technologies is creating the business models at faster speeds with which many current company structures cannot cope.

Consequently, consulting firms must formulate and implement appropriate strategies for not only surviving in the market but also as a means for satisfying clients (Rothaermel 2015, p. 326). The companies, for instance, need to rethink their digital strategy and business operating models to deliver their vision. There is also a need for a cross-channel connectivity to allow for continuous engagement of all the stakeholders. Other important components of the strategy should entail innovation and differentiation and leadership through appropriate business and operating models (Scott and Matthias 2017, p. 23). The consulting is a diverse industry and is known for the elite consultancies like McKinsey & Co and the Boston Consulting Group (BCG) that are considered as the elite category. The second class is referred to as the Big Four accounting firms that include KPMG, PwC, Deloitte, and Ernst & Young.

The third group of the firms is the technology consultancies and may include the examples of companies such as Hewlett-Packard that offer services such as computer system installation and integration (Charter and Tischner 2017, p. 10). The purpose of this essay is to present a comparative analysis of the strategies adopted by BCG, KPMG, and Infosys as part of the plans to address the challenges in the market. Consequently, an exploration of the firms’ objectives, alternate strategies, and tools is undertaken with the further aim of identifying the competencies, resource strengths, and capabilities through an analysis of the internal and external environment. The competitive conditions of the companies are also compared. The study uses the selected companies’ latest reports on market performance as the main evidence for the analysis presented in the study. Similarly, authoritative and scholar sources are also utilized in the paper to discuss the factors associated with the comparative analysis of the market conditions of the firms.

Objectives, Strategies and Key Success Factors

Boston Consulting Group (BCG)

The Boston Consulting Group (BCG) is an international management consulting company that holds the position of a leading advisor on business strategy. BCG offers services to private, public, and not-for-profit entities to identify their opportunities, address challenges and transform enterprises. BCG is a private firm founded in 1963 that has over 90 cities in 50 countries. The company describes that it applies a customized approach in which the corporation combines the deep insight of the clients in their respective markets and collaboration at all levels of business operations. The application of the strategy allows the firm’s clients to attain sustainable competitive advantage with lasting results while building capable organizations (BCG 2017). Some other strategies that are utilized by the firm in the market include a rapid evolution of its capabilities while enhancing the long-term relationships with its clients. BCG has also focused on expanding its global footprint with the aim of expanding into international territories to accomplish its major objectives. The company’s objectives include to relentlessly create value for its clients, to drive transformative change, to create positive difference in the world through the use of a broad network of clients, and to continuously invest in diverse and talented workforce. Some of the firm’s key success factors include the capabilities to deliver client value in most of its practice areas and the potential to enhance digital and advanced analytics offerings in a competitive global environment.

KPMG

KPMG offers tax, advisory, and audit services to clients drawn from a global market. The firm’s success factors especially in the Fiscal Year (FY) 2017 are identified as innovative services, client-focused investments in technology, and alliances and hiring (Bannister 2018). The firm has the presence in 154 countries and territories employing about 200, 000 professionals. The primary objective of the organization is to sustain and enhance the quality of its workforce while working closely with the clients to mitigate risks and to exploit market opportunities. KPMG indicates that it continues to build the success of their clients through the application of clear vision, human resources, and consistent values around the world. KPMG consulting offers services such as business transformation, risk and compliance, and technology transformation (KPMG 2018). Consequently, the firm offers clients a comprehensive support necessary for establishing cross-border and cross-cultural management systems and functional strategies. KPMG key strategies are further embodied in its market insights such as business transformation, data analytics, customer insights, and the philosophy that the future is inclusive as well as climate change and sustainability.

Infosys

Infosys is an international leader in the provision of the next generation of digital services and consulting in more than 45 countries around the world. Infosys’ key strategic objective is to build a sustainable firm that aims at solving the client’s agenda while establishing growth opportunities for the employees and generating profitable returns for the investors. The firm has over three decades of experience in enabling its clients to manage their digital transformation by offering system management and global enterprise solutions to clients (Infosys Annual Report 2018). The company is achieving its goals by enabling the application of the concepts of artificial intelligence (AI) and agile digital solutions to allow the execution of a change in their business clients. The firm indicates that its learning agenda is useful in enabling its clients to accomplish continuous improvement through transferring of digital skills, ideas from Infosys’ innovation ecosystem, and expertise. The business has customers in sectors ranging from banking to retail.

Infosys identifies the implementation of artificial intelligence as one of the main of its success factors especially relating to the modernization of the core businesses as to offer solutions such as the prediction of the consumer behavior and consumption patterns (Infosys Limited 2018). The transformation of clients’ businesses coupled with the advances in software and computing technology is also considered as a success factor to the firm. Some of the strategies that business is using to survive in the market while satisfying the clients’ needs include the goal to become the customers’ navigator as they ideate, plan, and execute their journey of a digital future. Consequently, the firm is applying strategies such as scaling agile digital, re-skilling the workforce, energizing the core, and expanding the localization.

Companies’ Internal Environment

Resource Strengths and Weaknesses, Capabilities, and Competencies

The strengths refer to the internal factors of a business that makes the organization to possess a superior competitive advantage as compared to the rivals in the market (Griffin and Van Fleet 2013, p. 157). The strengths are useful in enabling the firm to operate more efficiently and effectively and hence allowing high-profit margins and revenues. Capabilities are the ability of an organization to manage resources to acquire competitive advantage in the market to allow the business to focus on the ability to meet the customers’ demand (Fleisher and Bensoussan 2015, p. 111). Competencies, on the other hand, are the host of employee skills that are essential to the accomplishment of the organizational goals.

KPMG

KPMG’s major strengths include a successful track recording of integrating similar firms through mergers and acquisition (Muzellec and Lambkin 2017, p. 64). The company employs a large workforce of over 190000 individuals who are spread in over 150 countries. Similarly, KPMG is identified as one of the top consulting firms providing services such as tax, audit, and advisory due to the fact that the business possesses an extensive expertise that enables it to survive in the market. The extensive geographical reach is also an important strength since the presence in the global territories is important for the firm to increase its market share and growth opportunities. The weaknesses of the firm may include the fact that as a top consulting firm, the services may be costly and hence not affordable by small firms making the company not approachable. Another weakness is a limited market share due to competition from other top accounting consulting companies.

Infosys

Infosys’ resource strengths include the fact that it is one of the biggest businesses in India with the firm being ranked one of the best employers in the country (Javad 2015, p. 23). At Infosys, the key capabilities for driving its growth agenda and satisfaction of its customers include the presence of a global research and development (R&D) facility, excellent internal processes, and low-cost employees (Infosys Limited 2018). The global R&D is essential in the enhancement of innovation and provision of unique business solutions that are specific to the regions in which the ideas are generated and developed. The low-cost employees are essential capability because it enables promotes a cost-saving approach hence giving the firm a competitive advantage over its rivals due to cheaper labor.

The relatively low labor costs are due to the economic environment in India in which the firm is headquartered (Infosys Annual Report 2018). Similarly, the firm has a workforce with relatively high levels of information technology skills and consequently achieving an operational basis with a highly skilled competitive advantage. Infosys also indicates that its passionate consultants are not only aggregators of past knowledge but focuses on the transformation of the clients’ businesses through partnerships and innovations. Consequently, the customers are empowered to disrupt their markets and enhance their profitability (Javad 2015, p. 23). Furthermore, the workforce accomplishes the unique aspects of their clients through re-imagining solutions and leveraging designing. A key competency of the workforce also entails the ability to combine the existing technologies to transcend the limitations of conventional software and hasten the responses that are associated with the complex technology landscapes. With the status as an employer of choice, Infosys is capably attracting and retaining top talents in the job market to allow the firm to accomplish its unique goals in the industry.

The company is a leader in the provision of sophisticated solutions that allow its customers to optimize the efficiency of their business operations with a reliable global delivery model that can be applied in the accomplishment of the business goals. Furthermore, the firm is committed to superior quality and process implementation. Infosys has a strong brand and a long-standing client relationship as well as an impressive list of clientele that offers the company leverage on its market operations. According to 2017/2018 report, the company exhibited a resilient financial performance on multiple dimensions with the efficient capital management and productivity improvements observed as the main drivers of fiscal growth (Infosys Annual Report 2018). The strong financial performance is the strength to the company given the ability of the firm to undertake investments as well as engage in expansion pursuits as part of the exploitation of the opportunities in both local and global market environment.

The firm’s weaknesses include overdependence on India as its primary delivery point has not diversified the company’s efforts towards the diversification to the offshore locations. The organization is a smaller global player in the industry as compared to international firms such as IBM, Hewlett-Packard, Accenture, and EDS (Infosys Annual Report 2018). The application of less experienced pool to lower costs is a disadvantage due to the lack of particular skills. Furthermore, the organization is observed to be more reliant on the USA as the source of its revenues and thereby failing to capitalize on the domestic market as compared to other industry rivals.

BCG

The organizational capabilities at BCG include change management, big data analytics, innovation and product development, lean and manufacturing, and the efforts aimed at the management of corporate finance. The firm has a team of professionals that possess key competencies such as transformation skills and the ability to work efficiently manage and effect change (BCG 2017). The business also emphasizes diversity and inclusion of teams to allow the accomplishment of goals. The team also possesses competencies such as interpersonal skills such as communication and relationship building potentials to ensure that shared values and organizational goals are attained in the business.

Some of the strengths of BCG include the fact that the firm is popular consultancy in the world with a superior brand visibility as compared to that of the rival businesses. The company is regarded as one of the best companies to work for having been awarded as one of the top employers (Bloomberg 2018). Consequently, the firm can attract top talent from the labor market. The workforce at the business, therefore, consists of skilled personnel that ensures not only high productivity but is also a source of competitive advantage in the market. The business has generated publications and transformative knowledge that can be seen as an advantage due to the positive publicity. BCG’s weaknesses include fierce competition in the market hence limiting the firm’s market share and the sense that the firm has not been able to penetrate the international markets as compared to its rivals.

External Environment and Competitive Conditions

The analysis of the companies’ external environments primarily consists of the identification of the threat and opportunity factors to which the firms are exposed. The evaluation is also based on the market forces such as competition and regulatory approaches that influence the firms’ operations and success. According to Srinivasan (2014, p. 257), some of the significant external environment elements that affect the consulting management firms in the global market include technology, politics, socio-cultural aspects, legal, and economic factors that are specific to the various jurisdiction in which the firms are operating. Furthermore, the identified factors are observed to be constantly changing. The technological evolution as an external factor allows the consultants to not only transform their operations but also to tailor unique services to their clients as observed in the offering of AI cores by Infosys and big data analytics by KPMG and BCG. Political instability and civil unrests in some countries may disrupt business operations and hence should be considered as part of the firm’s global strategies. The legal environment is characterized by the contract, tax, and labor laws as well as other business regulatory concerns that are unique to specific countries (Molina-Azorín et al. 2015, p. 41). The socio-cultural aspects faced by all the firms include consumer preferences, lifestyles, communal values, and languages that vary from one territory to another.

Some of the external factors at Infosys include the opportunities such as a huge global market arising due to the need by the clients to transform their enterprises through the application of the next generation digital solutions (Bhargava 2017, p. 1). Infosys major competitors include Wipro, TCS, Dell, IBM, and Oracle that also offers similar software solutions to clients around the world. The KPMG competitive conditions differ based on the services that are offered. For instance, in audit and advisory practice, KPMG faces competition from a number of companies and three of the Big Four firms (PwC, Deloitte, and Ernst & Young). Other potential competitors include McKinsey & Company, and Grant Thornton. In business analytics and advisory, firms like AT Kearney and BCG are some causes of competition. The firm is also the uncertainties that are associated with the global economy as well as the regulatory measures that are associated with the specific markets (Phornprapha 2015, p. 801). BCG is also faced with the uncertainties in the global economy as well as competition from companies offering similar services. Some of the major competitors for the firm include KPMG, Ernst & Young, AT Kearney, and Grant Thornton.

Similarities

One factor that is similar to all the three consulting firms is the fact that they are all global companies with significant presence in many countries around the world. Regardless of the nature of the services offered by the respective companies, the external environment almost present similar dynamics since the businesses have a global presence. All the companies involved in the case face considerable competition in the sector with their rivals adopting aggressive marketing strategies. Consequently, due to the fierce competition, the firms are facing limited market growth in their respective areas of operations or service offerings. Other similarities are also observed in the nature of some of the threats that are faced by the companies regardless of the services offered. Since all the firms are international companies their face similar challenges regarding the operations in the foreign countries. Such challenges faced include fluctuations of currencies and regulations from one country to another. Another similarity with the analyzed firms is observed in relatively strong brands that are visible in all the markets of their operations.

Differences

While all the discussed multinationals offer consultancy to businesses around the world, the services and solutions offered are slightly different in each case. KPMG is an accounting firm alongside other solutions. Infosys’ services entail end-to-end IT solutions with the value-added services ranging from software engineering and infrastructure. On the other hand, BCG offers primarily business management consultancy. Given the diversity of the services offered by the three firms, their strategic approach also differ based on their key capabilities and competencies as well as the specific strategic objectives in the respective cases. The organizations also differ significantly in size. KPMG is the biggest while Infosys and BCG can be considered as mid-size companies.

Conclusion

The global market dynamics require that organizations implement strategic approaches towards managing the risks and exploiting the opportunities found in the territories in which the businesses are operating. Competition and market regulations, as well as the macroeconomic factors, are some of the aspects that may adversely affect the profitability and sustainability of the firms operating in the consulting sector. The purpose of this essay was to evaluate the strategies adopted by BCG, KPMG, and Infosys as part of the plans to address the challenges in the market. The analysis shows various strategies and objectives adopted by the respective firms to survive in the international market. BCG emphasizes the application of a customized technique in which it combines the deep insight of the clients in their respective markets and collaboration at all levels of business operations.

KPMG focuses on building the success of their clients through the application of clear vision, human resources, and consistent values around the world. Infosys apply next-generation digital solutions to attain offer needed solutions to its clients. The analysis has also identified similarities and differences in the three cases. A major similarity is the fact that all the businesses face similar competitive and external environmental conditions. On the other hand, some of the differences include the organizational sizes and the services that are offered.

References

Bannister, B. 2018. KPMG revenues grow strongly to record $26.4 billion. [online] KPMG. Available at: https://home.kpmg.com/xx/en/home/media/press-releases/2017/12/kpmg-revenues-grow-strongly-to-record.html [Accessed 3 Jun. 2018].

BCG 2017. BCG’s Organization Strategy Consulting Rated Best in the World - The Boston Consulting Group. [online] https://www.bcg.com. Available at: https://www.bcg.com/d/press/28august2017-bcg-organization-strategy-alm-intelligence-169087 [Accessed 2 Jun. 2018].

Bhargava, P., 2017. Financial Analysis of Information and Technology Industry of India (A Case Study of Wipro Ltd and Infosys Ltd). Journal of Accounting, Finance and Auditing Studies, 3(3), p.1.

Bloomberg, J. 2018. Americas Best Mid Size Employers. [online] Forbes.com. Available at: https://www.forbes.com/companies/boston-consulting-group/ [Accessed 3 Jun. 2018].

Charter, M. and Tischner, U. eds., 2017. Sustainable solutions: developing products and services for the future. Routledge.

Cusumano, M.A., Kahl, S.J. and Suarez, F.F., 2015. Services, industry evolution, and the competitive strategies of product firms. Strategic management journal, 36(4), pp.559-575.

Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective application of new and classic methods. FT Press.

Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.

Griffin, R. and Van Fleet, D., 2013. Management skills: assessment and development. Nelson Education.

Infosys Annual Report 2018. Navigate your Next. With Infosys: Infosys Annual Report. [online] Bangalore: Infosys, pp.1-279. Available at: https://www.infosys.com/investors/reports-filings/annual-report/annual/Documents/infosys-AR-18.pdf [Accessed 2 Jun. 2018].

Infosys Limited 2018. Navigate your next. [online] Infosys.com. Available at: https://www.infosys.com/ [Accessed 2 Jun. 2018].

Javad, S., 2015. It’s time to bring performance appraisal into the twenty-first century: The lessons from companies like Cisco, Google and Infosys. Human Resource Management International Digest, 23(7), pp.23-26.

KPMG 2018. Consumer & Retail. [online] KPMG. Available at: https://home.kpmg.com/xx/en/home/industries/consumer-and-retail.html [Accessed 4 Jun. 2018].

Molina-Azorín, J.F., Tarí, J.J., Pereira-Moliner, J., López-Gamero, M.D. and Pertusa-Ortega, E.M., 2015. The effects of quality and environmental management on competitive advantage: A mixed methods study in the hotel industry. Tourism Management, 50, pp.41-54.

Muzellec, L. and Lambkin, M., 2017. Marketing: Its Valuable Role in the Due Diligence Process. In Value in Due Diligence(pp. 63-80). Routledge.

Nguyen, T.H., Newby, M. and Macaulay, M.J., 2015. Information technology adoption in small business: Confirmation of a proposed framework. Journal of Small Business Management, 53(1), pp.207-227.

Phornprapha, S., 2015. People Passion programme: Implementing an innovative workplace learning culture through professional development–the case of KPMG Thailand. International Review of Education, 61(6), pp.795-814.

Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.

Scott, R. and Matthias, O., 2017. Consulting in the public sector. Management Consultancy Insights and Real Consultancy Projects.

Srinivasan, R., 2014. The management consulting industry: Growth of consulting services in India: Panel discussion. IIMB Management Review, 26(4), pp.257-270.

Appendix: ITM Checklist

Topics

The sine qua non of success

Comments/suggestions

Economics

Which macroeconomic relevance is inherent in the topics?

The economic factors relating to the topic include effects inflation that may affect the implementation of strategies in particular territories. The profitability of the firms in the global market is also subject to currency fluctuations.

Marketing

Which advantages and disadvantages arise out of the suggestions for marketing measures, external impact, and the company’s general productivity?

Which measures should be taken concerning internal and/ or external marketing?

Marketing is subjected to international market environmental forces such as regulations and competition. The firms analyzed offer various services that must be tailored to meet the specific market needs in different territories.

Human Resource

Which personnel consequences (quantitative or qualitative) result from the suggestions?

The human resource aspects arising from the study include the need to hire a highly skilled workforce with the appropriate competence to offer the business capabilities. Furthermore, the cost of human resources/labor is significant in influencing the competitiveness of the firms.

Corporate Finance

What criteria have to be considered when choosing appropriate terms of financing?

Which risks are existing and what kind of coverage is suggested?

How should the influence of external factors be evaluated?

The success strategy implementation depends on the ability of a firm to offer adequate financial resources to accomplish the set strategic objectives. The cost-benefit analysis can be performed on the comparison of the business efficiency and profitability arising from the strategy implementation.

Strategic

Corporate

Management

How is the topic’s strategic relevance to be evaluated, especially

concerning the aspects of securing existence, competitive advantages, tying up resources, sustainability, and risks?

The strategic management entails the analysis of the international consulting market environment to identify how the firms’ capabilities can be used to create client value. Strategies are also implemented as part of the competitive advantage

Business Law

Which legal fields are affected by the suggestions?

What has to be arranged in order to create legal security from the company’s point of view?

The global market is faced with the various regulations that may be changing from one country to the other. The consultancies must thus consider the labor, tax, and contract laws that apply from one jurisdiction to the other as they seek to implement their strategies

Soft Skills &

Leadership

Qualities

Which demands does the realization of the suggestions require the responsible managers? What is leadership behavior expedient?

Leadership qualities are required to enable the firms to accomplish its strategic vision. Soft skills such as teamwork, communication, and interpersonal skills should be possessed by the personnel to ensure the accomplishment of the group goals.

Research

Methods

What should sources of information be practiced in order to stay up to date in the field of topics?

The consultants should stay up to date with the international market environmental dynamics. Similarly, the firms need to identify the strategies that are applied by the rivals. Some of the techniques that can be applied by the businesses include the artificial intelligence-driven technologies to extract the relevant information from the market.

Management

Decision

Making

Which decision criteria should be practiced on the choice of alternatives?

The decision criteria in the choice of alternatives should be based on the suitability and applicability of a strategy in a particular market. The suitability and applicability of a strategy are affected by the diverse nature of the global market.

Digitization

What are the opportunities and challenges of digitization? What are the recommendations?

The opportunities in digitization include the fact that the clients are increasingly embracing digital technologies to improve their processes. Consequently, the consultants can offer and profit from the several areas of digitization such as data analytics. Challenges that come with digitization include cybersecurity concerns and costs.

Business

Ethics and

Sustainability

What relevant ethical question may arise in the given context?

Which sustainability challenges may occur in the given context?

Which management measures could be useful to address these potential challenges effectively and efficiently?

The ethical issues that can be considered in the implementation of the strategies include the motives of the consultants in certain countries. The key sustainability concern is the increasing environmental pollution and climate change. One management me