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Cl m-1 round-sorrento


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Cl m-1 round-sorrento

  1. 1. Alexey Dzybenko ▪ Evgeny Glushkov ▪ Kirill Kondakov ▪ Stanislav Orekhov Invading Russian management consulting market Sorrento
  2. 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,, Sorrento analysis (please refer to .xls, “Global clients” sheet). II. Build the team III. Promote the brand <ul><li>Engage international clients operating in Russia* </li></ul><ul><li>Approach Russian companies operating abroad globally </li></ul><ul><li>Focus on selected industries, e.g. Infrastructure and Retail </li></ul><ul><li>Develop industry-independent practices, e.g. HR and Finance </li></ul><ul><li>Transfer partners and principals from Europe/US </li></ul><ul><li>Recruit post-MBA consultants of Russian origin globally </li></ul><ul><li>Headhunt for seniors with local expertise and experience </li></ul><ul><li>Target students and graduates to attract foot soldiers </li></ul><ul><li>Cover Russian companies in global benchmarking </li></ul><ul><li>Publish Accenture Outlook articles in Russia </li></ul><ul><li>Conduct pro bono projects to be visible in the market** </li></ul><ul><li>Patronize translation of business books into Russian </li></ul>RU
  3. 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 <ul><li>Priority industries </li></ul><ul><li>Further expansion (after 2015) </li></ul><ul><li>Opportunistic projects </li></ul>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. 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. 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 <ul><li>Direct sales </li></ul><ul><li>Key activity for partners and principals </li></ul><ul><li>Events </li></ul><ul><li>Participation in industrial conferences </li></ul><ul><li>Organization of conferences and workshops </li></ul><ul><li>Publications </li></ul><ul><li>Global benchmarking and industry reviews on Russia </li></ul><ul><li>Articles on Russia in Accenture Outlook and local press </li></ul><ul><li>Patronizing business books publication </li></ul><ul><li>Pro bono </li></ul><ul><li>Projects proving professional excellence </li></ul><ul><li>Advertising </li></ul><ul><li>In airports ’ business lounges and in business-oriented hotels – focus on brand awareness rather than sales </li></ul>               Focused Proof of expertise Interactive
  6. 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 <ul><li>Transfer a partner* and 2 principals, hire others locally </li></ul><ul><li>Conduct global benchmarking with Russian companies </li></ul><ul><li>Engage global clients working in Russia** </li></ul><ul><li>Work with Russian companies in priority industries </li></ul><ul><li>Headhunt partners, principals and managers with teams </li></ul><ul><li>Tour across business schools for MBAs of Russian origin </li></ul><ul><li>Possible acquisition of a boutique consulting firm*** </li></ul><ul><li>Expand practice to second - priority industries </li></ul><ul><li>Diversify functional expertise </li></ul><ul><li>Integration with other Accenture service lines </li></ul>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. 7. Back-up
  8. 8. Consultants, clients, and rivalry shape the Russian management consulting market - Market drivers analysis Source: Case data, Ivanov & Ferber – “Consulting Marketing Guide”, Sorrento analysis <ul><li>Major global players present </li></ul><ul><li>Biggest clients already taken </li></ul><ul><li>Fight for the talents </li></ul><ul><li>Diversity of rivals </li></ul>Established brand is vital Rivalry Newcomers Clients Consultants Substitutes <ul><li>High turnover </li></ul><ul><li>Strong bargaining power </li></ul><ul><li>Key to clients’ decisions </li></ul>Cornerstone of success <ul><li>Books, workshops etc. </li></ul><ul><li>Institutionalization of services </li></ul><ul><li>Internal consulting </li></ul>Not a significant threat <ul><li>Backward integration threat </li></ul><ul><li>Low switching costs </li></ul><ul><li>Quality over price </li></ul><ul><li>Require services to be adapted to changing demand </li></ul>Buyer’s market <ul><li>Small capital requirements </li></ul><ul><li>Reputational entry barriers </li></ul><ul><li>Low exit barriers </li></ul>Risk is low for Accenture