The management consultancy, a 14 billion EUR industry in Europe, has become an attractive market in the last couple of years. The Swedish market is blooming with an economic growth of a staggering 20 % according to analysts at Konsultguiden. The attractiveness of the market has brought many foreign players into the field such as Celerant.
Celerant is a UK-based company earning a total of $145 million in 2006 with about 650 employees around Europe and the USA. Their focus is mainly within operational management. A few years ago, Celerant decided to expand in to the Nordic region consisting of Denmark, Norway and Sweden and has just recently started to focus a bit extra on the Swedish market. Using Porter’s model of Five Forces we look at the Swedish management consulting industry to see what factors to consider focusing on when entering the market.
Through an analysis of the current management consulting market, we compare it to Celerant’s strategy for entering the Swedish market to see if our analysis differs or is similar to the consultancy’s actual strategy. This gives us a picture of how the management consultancies perceive the market and how they act accordingly. The results show similarities with two factors: the consultants and the clients. These seem to be the main factors to focus on as a management consultancy entering the Swedish market.
There seems to be a current shortage of competent consultants on the Swedish market and therefore a necessity to focus on recruitment. Clients are what make business for consultancies and business connections need to be established before entering the market. However, we found that more precaution should be taken for factors such as substitutes and new entrants as well. There is a constant change of trends in the management consultancy industry and needs to be considered in order to stay competitive on the market, since a management consultancy needs to be able to offer what the clients demand.
Source: Uppsala University
Author: Bojler, Therese | Björlin, Jeanette