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BRAIN GRAIN(ATOT) Accenture market entry strategy
Objectives: Enter Russian consulting market $100 million revenue by 2020 Current situation: In the period 2010-2020 the Russian consulting market will grow 20% (YoY) and be worth an estimated $24 billion in 2020 ( see Appendix 1) On the basis of Porter 5 Forces Analysis we have concluded that Russian market penetration will be challenging but beneficial (see Appendix 2) Objectives and current situation analysis
Product Accenture should penetrate the market with all 7 service lines in portfolio (see App. 4). After thorough examination of A’s potential ( see SWOT-analysis in App.3) and the most promising dimensions for entry ( see Expert evaluations in App. 5) we have selected Process&Innovation Performance and Supply Chain as the core lines followed by Strategy and Customer Relationship Management  as the lines of the 2nd  priority.  Focus industries: Manufacturing, Telecoms&Transport, Mining, Wholesales&Retail Trade (see Appendix 1). Price The chosen strategy (see App. 4) is based on price diversification: In core services charge of high price of approx. $300k (for M+2 team ( see p.2 of the case)); In non-core services - $200-250k.  The annual price rise of around 20%  is expected in the coming decade. The Company introduces the system of discounts for: established global clients and loyal Russian clients;  complex solution of set of problems. Penetration strategy5P Model
Place Office in Moscow ( with possible geographical expansion). People Employees: 2010 - 40-45 ( 20-25 consultants) 2020 – 70-80 consultants only (see Appendix 7). HR policy: expatriate partners; employment of local experienced managers (outbid competitors’ managers). Motivation: quick promotion ( Accenture’s goal to increase the proportion of Russian employees, including partners); corporate culture: ,[object Object],Penetration strategy5P Model
Doing business without advertising Promotion is like winking at a girl in the dark. Stuart Henderson Britt To achieve set number of projects Accenture need to implement aggressive promotion strategy: PR (creating positive image in mass-media, views of our consultants on main economic and industry-related issues in top mass-media; Accenture Case Club); Advertising (in economic-related papers Newsweek, Expert, RBC daily, Vedomosty);  Sponsorship ( sports events, patronage of orphanage) Corporate image ( Accenture football team, publishing manuals on consulting problems) Penetration strategy5P Model
To achieve $100 million revenue by 2020 ,[object Object]
Accenture should apply aggressive marketing strategy

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Cup Moscow >> Eng >> Finalist >> Brain Grain (1st Round Case)

  • 1. BRAIN GRAIN(ATOT) Accenture market entry strategy
  • 2. Objectives: Enter Russian consulting market $100 million revenue by 2020 Current situation: In the period 2010-2020 the Russian consulting market will grow 20% (YoY) and be worth an estimated $24 billion in 2020 ( see Appendix 1) On the basis of Porter 5 Forces Analysis we have concluded that Russian market penetration will be challenging but beneficial (see Appendix 2) Objectives and current situation analysis
  • 3. Product Accenture should penetrate the market with all 7 service lines in portfolio (see App. 4). After thorough examination of A’s potential ( see SWOT-analysis in App.3) and the most promising dimensions for entry ( see Expert evaluations in App. 5) we have selected Process&Innovation Performance and Supply Chain as the core lines followed by Strategy and Customer Relationship Management as the lines of the 2nd priority. Focus industries: Manufacturing, Telecoms&Transport, Mining, Wholesales&Retail Trade (see Appendix 1). Price The chosen strategy (see App. 4) is based on price diversification: In core services charge of high price of approx. $300k (for M+2 team ( see p.2 of the case)); In non-core services - $200-250k. The annual price rise of around 20% is expected in the coming decade. The Company introduces the system of discounts for: established global clients and loyal Russian clients; complex solution of set of problems. Penetration strategy5P Model
  • 4.
  • 5. Doing business without advertising Promotion is like winking at a girl in the dark. Stuart Henderson Britt To achieve set number of projects Accenture need to implement aggressive promotion strategy: PR (creating positive image in mass-media, views of our consultants on main economic and industry-related issues in top mass-media; Accenture Case Club); Advertising (in economic-related papers Newsweek, Expert, RBC daily, Vedomosty); Sponsorship ( sports events, patronage of orphanage) Corporate image ( Accenture football team, publishing manuals on consulting problems) Penetration strategy5P Model
  • 6.
  • 7. Accenture should apply aggressive marketing strategy
  • 8. Accenture should focus on its distinct features and strong brand
  • 9. Accenture should hire preferentially Russian staffFinal Conclusion
  • 10. Thank you for your attention!