The 5-Forces Analysis of the Consulting Industry
Autor: jay.ray • February 24, 2015 • Dissertation • 359 Words (2 Pages) • 14,291 Views
5 Forces
Let's have a look at how the 5-forces analysis of the Consulting industry look like.
Some attributes that define this industry are higher margins, low initial capital investments, knowledgeable workforce and client relationships.
Medium Threat of Entry - Low customer switching costs, low initial capital investment but the factors of an experienced knowledgeable workforce and a success track record dictate the success of the firms.
Low Power of Suppliers - This force is defined by the easy availability of MBA graduates and experienced consultants. Other suppliers like the software product vendors often seek integration of their products within consulting firms' suite.
High Power of Buyers - The clients of consulting companies always have an option of in-housing experienced professionals from the market or maintaining the status quo unless change is inevitable.
Medium Threat of Substitutes - in-line with the buyer power, the threat of substitute is relatively medium.
High Firm Rivalry - Bigger consulting firms competing for the same Fortune 500 clients, smaller niche consulting firms pursuing business with clients in respective verticals all lead to high competitive rivalry within groups.
Internal Analysis - Capabilities
Building up on the last point of the previous slide, a High Competitive Rivalry among firms leads to practices of poaching of consultants by competing firms or even by client industries. A couple of graphs show how vulnerable the industry feels to poaching especially by client firms.
North Highland is relatively shielded by this threat by maintaining a unique sense of contentment and ownership among its consultants.
Internal Analysis - Maturity
Moving on to the service offerings, North Highland is uniquely positioned at different stages of the adoption curve with its relatively stable businesses of strategy consulting, marketing solutions and project based staffing higher up there with Enfathom positioned well in a highly growing data analytics space.
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