The Monitor Group Case Study Analysis
Bargaining Power of Suppliers
The bargaining power of suppliers in a consultancy firm is low. There are fewer suppliers than the buyers, suppliers have forward integration potential, and suppliers are in this industry not for profit but other reasons as well..
Bargaining Power of Consumer
The bargaining power of the consumer in this industry is high as there are several competitors in this market, fewer buyers, the buyer has relevant information, low switching cost, better and easy alternatives for the buyer to choose the best for him.
Threat of Substitution
Threat of substitute in consultancy industry is high. The reason is that the need of any client can be meet by other service provider who offer better services and value the client in a different way as one service provider. In India also, there are chances of substitute for the consultancy like Monitor Group.
The Monitor Group has number of competitors because it is a consultancy firm. But the major competitor is McKinsey. It is also trying to make the same approach in India since 1998. McKinsey is also a consultancy firm which has knowledge of full information and treat better to its clients with large number of employees.
Core competencies of the Monitors Group is business management consulting, solving the problems of the clients, performance improvement diagnoses, reviewing and comparing possible courses of action and improve the effectiveness and efficiencies of the company.
Competitive response can be taken by the Monitor Group by analyzing what your client should do in response to a major competitor’s strategy to anticipate what competitors will do in response to a strategy implemented by your client.
Situation Analysis – Internal
- The strength for Monitor Group is the demand for unique expertise in the consultancy market because consultants are highly specialized.
- The company can be in the positive and profitable situation because the expenses in the US are higher, but they are lower in India. All the expenses like salary expense, benefits, rent expenses and infrastructure cost is comparatively low in India. Moreover, the startup cost is also range from $1,000 to $50,000, which depends on the skills of the consultants. So once a firm starts generating revenue, financial support of many financial institute is also possible.
- The company is old, and it has impact on the market. If company also function in India its growth is possible because of the trust and market value of the company. Moreover, the skilled people in the company and consulting certificate also develop the trust of the clients.........................................
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