The Russian management consulting market is estimated at $250 million annually. It has seven major players serving top clients accounting for 75% of the market, while only one player focuses on the mid-market accounting for the remaining 25%. Accenture would benefit from entering the mid-market due to its high growth potential and management consulting opportunities. The best way for Accenture to enter is under its own brand to leverage its international reputation while avoiding disadvantages of other options like greenfield entry, joint ventures, or acquisitions. Accenture's long term goal is to achieve $100 million in revenue and a top three market share in Russia by 2020.

1. AccentureRussian market entry project

2. Management Consulting Market OverviewRussian management consulting market, estimated at USD 250 mln, has 7 major players working with top clients (circa 75% of total market) and only one dealing with mid-market (circa 25% of total market)Top and mid-market** specifics highlights*Management consulting companies distribution by segment, employees and revenuesTop-market1Mid-marketStaff headcountAccenture will benefit from mid-market entry due to this market’s high growth potential and major management consulting opportunities within Russian mid-market companies* №1 Attachment **Top clients: companies which reported revenues more than USD 1 bn, mid-market clients: companies which reported revenues less than USD 1 bn

3. Competitors Analysis2We divided competitors taking into account their market position, goals and strengths and proposed Accenture’s competitive advantages

4. Market Entry Options AnalysisThe best way to enter the Russian market for Accenture is via its own brand promotion, as disadvantages of greenfield market entry could be eliminated while applying proper strategy.Market entry optionsGreenfieldJoint ventureTakeover of a local playerImmediate access to the client base and core local specialistsStrong international brandAbility to hire proper employeesFlexibility to choose area of work and manage business strategyComplex services, where Accenture has low or limited capabilitiesAccess to client base an other brandPotential acquisition targets are only boutiques as top players are internationalLocal players don’t have proper qualification an personnelProbable difficulties with integrationRegulation barriers (banks)Lack of transparency (PE funds)Reputation risks (boutiques)Competitive landscapeDifficulties while creating client base and recruiting personnelDue to lack of potential acquisition targets (for takeover) and integration barriers (in case of Joint Venture relationships) these market entry scenarios are considered as inappropriate.

5. Development StrategyAccenture should deal with top clients in specific ‘technical-oriented’ industries as services provided by Accenture will not interact with those of rivalsMid-market clients in the most lucrative industries* should be chosen as the key client segmentTop clientsMid-market clientsAccording to information provided by CEO of Strategy Partners, Sberbank plans to sell the controlling stake in Strategy Partners in 2015. The possible acquisition opportunity should be considered by that time (it depends on market share, industry focus, qualification employees etc).* №1 Attachment** PIP – process and innovation performance, TOP – talent and organization technology, CRM – customer relationship management, FPM – finance and perormance management, SCM – supply chain management, RM – risk anagement, ***№2 Attachment

6. 10 years growth planIn 2010 Russian consulting market will be $400-500 mln, Accenture will be in Top 3 management consulting companies with 34% market share.5

7. Management Consulting Market Overview6№1Attachment Market EstimationBaseline and Ambitions Accenture’s management consulting business includes the following service lines: customer relationship management, finance and performance management, process and innovation performance, risk management, supply chain management, strategy and talent and organization performance.

8. The Company has stated an objective to enter the Russian market.

9. The Company has highlighted the KPI of USD 100 mln to be reported in the Russian market in 2020.We have selected mid-market companies (revenues less than $1 bn), and divided the companies into industry segments. Considering weighted internal and external indicators we rated each group (Accenture should focus on the most lucrative industries which are highlighted):Rating included the following factors: management level, market growth, government influence, amount of players, consultants competition.Red – middle and top marketPurple – mid-market

10. Selected Private Equity Funds operating in Russia№2Attachment7

11. Competitors Analysis№3AttachmentThe Boston Consulting GroupSource: bcg.ru

12. Competitors AnalysisMcKinsey & CompanySource: mckinsey.ru

13. Competitors AnalysisA. T. KearneySource: atkearney.ru

14. Competitors AnalysisBain & CompanySource: bain.com

15. Competitors AnalysisBooz & CompanySource: booz.com

16. Competitors AnalysisMonitor GroupSource: monitor.com

17. Competitors AnalysisRoland Berger Strategy ConsultantsSource: rolandberger.ru

18. Competitors AnalysisStrategy PartnersSource: strategy.ru