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Cl m-1 round-sorrento



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  • 1. Alexey Dzybenko ▪ Evgeny Glushkov ▪ Kirill Kondakov ▪ Stanislav Orekhov Invading Russian management consulting market Sorrento
  • 2. Accenture should leverage its global scale to attract clients, build a strong team and promote the brand in Russia 9 What should Accenture do to enter Russian management consulting market and grow to a $ 100M business in terms of revenue by 2020 ? I. Attract clients * e.g. Coca-cola, Danone, Deutche Bank, DHL, ING Group, Nissan Motor, Martini & Rossi, Microsoft, Siemens, Unilever etc. ** Pro-bono projects are also valuable to test the team and learn the market. Note: Actions are focused on key market drivers. For details please refer to the back-up slide. Source: Case data, Accenture.com, Sorrento analysis (please refer to .xls, “Global clients” sheet). II. Build the team III. Promote the brand
    • Engage international clients operating in Russia*
    • Approach Russian companies operating abroad globally
    • Focus on selected industries, e.g. Infrastructure and Retail
    • Develop industry-independent practices, e.g. HR and Finance
    • Transfer partners and principals from Europe/US
    • Recruit post-MBA consultants of Russian origin globally
    • Headhunt for seniors with local expertise and experience
    • Target students and graduates to attract foot soldiers
    • Cover Russian companies in global benchmarking
    • Publish Accenture Outlook articles in Russia
    • Conduct pro bono projects to be visible in the market**
    • Patronize translation of business books into Russian
  • 3. Accenture should enter the market in 6 priority industries and later expand to 5 highly competitive segments - Utilities Infrastructure & Transportation Automotive Air Freight & Travel Services Natural Resources Energy Chemicals Retail Life Sciences Industrial Equipment Consumer Goods & Services Public Service Health Insurance Capital Markets Banking Media & Entertainment Electronics & High Tech Communication Competition Attractiveness High Low High Industry assessment matrix
    • Priority industries
    • Further expansion (after 2015)
    • Opportunistic projects
    Note: Industry breakdown corresponds to Accenture operating groups structure. Source: Case data, Expert RA, Sorrento analysis (please refer to .xls, “Ind. Overview”, “Ind. Attractiveness” and “Ind. Competition” sheets). I. Attract clients
  • 4. Accenture should transfer seniors from Europe/US and recruit both globally and locally to build a team 0 Staffing sources per position * From partners to interns, administrative personnel not included. Source: Case data, Ivanov & Ferber – “Consulting Marketing Guide”, David Meister – “The Anatomy of a Consulting Firm”, Sorrento analysis (please refer to .xls, “Calculations” and “Staffing” sheets). II. Build a team Number of professionals * required 2020 2017 175 2018 156 2016 2019 214 195 117 2014 2015 136 97 2013 78 2012 42 2H 2011 21 1H 2011 9 Intern Consultant Principal Partner Analyst Manager Entry Rapid expansion Sustainable growth Partner Principal Manager Consultant Analyst Intern Admin. Transfer from EU/US   Local headhunting    Global MBA recruiting  Local HR agencies    Campus recruiting   Student competitions  Outsourcing 
  • 5. Accenture should promote the brand via direct sales, events, publications, pro bono projects and limited advertising - Groups of recommended marketing initiatives Source: Case data, Ivanov & Ferber – “Consulting Marketing Guide”, Sorrento analysis (please refer to .xls, “Marketing” sheet for details). III. Promote the brand
    • Direct sales
    • Key activity for partners and principals
    • Events
    • Participation in industrial conferences
    • Organization of conferences and workshops
    • Publications
    • Global benchmarking and industry reviews on Russia
    • Articles on Russia in Accenture Outlook and local press
    • Patronizing business books publication
    • Pro bono
    • Projects proving professional excellence
    • Advertising
    • In airports ’ business lounges and in business-oriented hotels – focus on brand awareness rather than sales
                   Focused Proof of expertise Interactive
  • 6. Accenture should penetrate the market in 2011, expand rapidly in 2012-2013 and then go for sustainable growth - Strategy implementation stages, key steps and results * Viktor Levinsky recommended. ** Including Russian-styled Christmas gifts informing about Accenture expansion. *** Basic scenario does not include M&A. However acquisition should be considered as an option to mitigate risks of not meeting the objectives. Source: Sorrento analysis (please refer to .xls, “Calculations”, “Market size” sheets). 1. Market entry 2. Rapid expansion 3. Sustainable growth
    • Transfer a partner* and 2 principals, hire others locally
    • Conduct global benchmarking with Russian companies
    • Engage global clients working in Russia**
    • Work with Russian companies in priority industries
    • Headhunt partners, principals and managers with teams
    • Tour across business schools for MBAs of Russian origin
    • Possible acquisition of a boutique consulting firm***
    • Expand practice to second - priority industries
    • Diversify functional expertise
    • Integration with other Accenture service lines
    2011 2012-2013 2014-2020 Team size Revenue, $M 21 4 78 32 214 Overall results at the end of 2020 106 Market share: 9% NPV: $ 74M Net profit: $ 38M
  • 7. Back-up
  • 8. Consultants, clients, and rivalry shape the Russian management consulting market - Market drivers analysis Source: Case data, Ivanov & Ferber – “Consulting Marketing Guide”, Sorrento analysis
    • Major global players present
    • Biggest clients already taken
    • Fight for the talents
    • Diversity of rivals
    Established brand is vital Rivalry Newcomers Clients Consultants Substitutes
    • High turnover
    • Strong bargaining power
    • Key to clients’ decisions
    Cornerstone of success
    • Books, workshops etc.
    • Institutionalization of services
    • Internal consulting
    Not a significant threat
    • Backward integration threat
    • Low switching costs
    • Quality over price
    • Require services to be adapted to changing demand
    Buyer’s market
    • Small capital requirements
    • Reputational entry barriers
    • Low exit barriers
    Risk is low for Accenture