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Accenture SWOT & PESTLE Analysis

ID : 5298153| Mar 2018

COMPANY PROFILE -Accenture

Business Sector :Information Technology and Consulting Services

Operating Geography :Europe, Ireland, Global

About Accenture :

Accenture is a global professional services company and provides strategy, consulting, digital, technology and operations services. It has been incorporated in Dublin, Ireland, since 2009. Its five main businesses are —Accenture Strategy, Accenture Consulting, Accenture Digital, Accenture Technology and Accenture Operations. Accenture Technology Vision 2017 Forecasts a Future of Technology for People, by People Rapid acceleration of human-centric technology in AI, digital ecosystems and marketplaces will empower people, drive transformation of business and society.

Accenture Revenue :

US $34.9 billion – FY ending Aug. 31, 2017

Competitive Analysis of Accenture

SWOT
PESTLE
The SWOT analysis for Accenture is presented below:
Strengths
Weaknesses
1. Global delivery model
2. Strong workforce
3. Leading with research & innovation
4. Long term relationship with key accounts.
5. Effective marketing & branding strategy
1. Organisational challenges due to the size
2. Majorly known as a consulting firm
3. Favors large sized projects
Opportunities
Threats
1. Growth of enterprise mobility solutions
2. Convergence of communications, computing and content
3. Strategic acquisitions to strengthen capabilities and drive growth
1. Volatile, negative or uncertain economic conditions
2. High attrition rate
3. Competitive markets
4. Cybersecurity and other risks
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Detailed SWOT Analysis of Accenture

 

Strength

1. Global Delivery Model: One of the key differentiators of Accenture is its Global Delivery Model. It integrates employees and other resources from around the world. These resources include scalable, standardized processes, methods and tools, automation and artificial intelligence, industry expertise and specialized capabilities, cost advantages, foreign language fluency, proximity to clients and time zone advantages.

2. Strong workforce: Accenture has an employee base of approximately 3.84,000 people serving clients in a broad range of industries and in three geographic regions: North America, Europe and Growth Markets (Asia Pacific, Latin America, Africa, the Middle East, Russia and Turkey).

3. Leading with research and innovation: Accenture has a unique approach called the Accenture Innovation Architecture through which it combines the capabilities across the company to develop and deliver disruptive innovations.Its divisions catering to innovation are: Accenture Research,Accenture Ventures,Accenture Labs,Accenture Studios,Accenture Innovation Centers and Accenture Delivery Centers. An important indicator of their innovation capabilities is their intellectual property portfolio which includes more than 5500 patents and pending applications. Recently in September 2017, Accenture was awarded a patent for "editable blockchain." Accenture spent $643 million $626 million and $640 million in years 2016, 2015 and 2014 respectively in R&D.

4. Long term relationship with key accounts: Accenture serves more than three-quarters of the FORTUNE Global 500 and 94 of the top 100. They build strong, long-term relationships with their clients. All of their top 100 clients have been clients for at least five years, and 98 have been clients for 10 years or more.

5. Effective marketing and branding strategy: Accenture utilizes every brand touch point including print, airport, outdoor and broadcast advertising. Internal marketing includes recruitment marketing materials, client presentations, company’s website, employee communications, etc. The company also had Tiger Woods, the famous golf professional as their ambassador in the past.

Weakness

1. Organizational challenges due to the size: Accenture employed approximately 425,000 people globally as of August 2017. The size and scale present significant management and organizational challenges. It might become increasingly difficult to maintain effective standards across a large enterprise and effectively institutionalize the knowledge. It might also become more difficult to maintain the culture, effectively manage and monitor their personnel and operations and effectively communicate the core values, policies and procedures, strategies and goals. The size and scope of their operations increase the possibility that they might have employees who engage in unlawful or fraudulent activity.

2. Majorly known as a consulting firm: Even though Accenture brings together expertise from 5 areas i.e. Accenture Strategy, Accenture Consulting, Accenture Digital, Accenture Technology and Accenture operations, the consulting division acts as the major source of revenue for the firm.

3. Favors large sized projects: Accenture is trying to venture into small and medium sized projects which offer considerable revenue if undertaken in large numbers. Focusing only on large sized projects will result in loss of market share to its competitors.

Opportunity

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Threat

This section is available only in the 'Complete Report' on purchase.

References

1. Accenture Annual Report 2016: https://www.accenture.com/t20161030T213116__w__/in-en/_acnmedia/PDF-35/Accenture-2016-Shareholder-Letter10-K006.pdf#zoom=50

2. Accenture website: www.accenture.com

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Accenture SWOT and PESTLE analysis has been conducted by Chithira Sajeev and reviewed by senior analysts from Barakaat Consulting.

Copyright of Accenture SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

Accenture SWOT & PESTLE Analysis
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