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The BCG study EssayThe capital of Massachusetts consulting group is a global management consulting firm serves as an advisor to clients in the private, public, and non-for-profit sectors across the world. Now, the capital of Massachusetts consulting group is private club with more than 75 offices in 43 countries and recorded revenues $3700 million in 2012. The headquarter of the Boston consulting group is in Boston and assiduous 6200 consultants. The family was founded by Bruce D. H set asideerson in 1963 as a division of the Boston sage deposit and trust company.In 1975, Handerson ar footslogd an employee stock ownership intend and the buyout or all shargons was completed in 1979. Serving as a management consulting firm, Boston consulting group acts as an adviser to many origines, governments, and institutions.The recent clients of the Boston consulting group include Google, IBM, Ameri washbowl Airlines, Ford Motor Company, Tata Group, Havard School of Public Health, Russi an Ministry of Energy, Government of Canada and so on. As a worlds pencil lead advisor on business stratedy, the Boston consulting group focus on cooperate clients to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. The SWOT psychoanalysis of Boston consulting groupStrangthsWeaknessesWell accepted in the industry of consulting.Expertise covers a wide range of insustries.Lagging behind in the technology bea.Comperetively humiliated scale on the area of oprations.OpportunitiesThreatsStrengthsWell respected and globally accepted brand in the scheme consulting domainBCG, over the years has cultivated and built up a re vomitation for itself and a corporate brand which has become almost synonymous to strategy consulting. In the process, BCG has pioneered some path breaking ideas and concepts in the strategy consulting domain that provided innovative frameworks and solutions to address the needs and problems of busin esscommunity.The companys focus on conceptual, strategical thinking has yielded many concepts that went on to become classics of strategy, and resulted into many academic constructs, tools and methodologies. It pioneered the offset theatrical role matrix/BCG Matrix model which was one of the famous concepts in resource allocation strategy and was the basis for origin of further models.The company as well as formulated many concepts, including the experience curve, time-based competition, sustainable ingathering, and total shareholder value, which many organizations have leveraged to improve their competitive positions.Most of BCGs models are regarded as benchmarks in strategic management and business consulting areas. The strong acceptance of BCG as a strategy consulting brand differentiates it from many of its peers and equips the company with competitive traction.Expertise developed across ternary industry sectors strengthens its business reach The company has gradually deve loped broad expertise in offering services for confused industries, including automotive, bio pharmaceuticals, consumer products, energy and environment, engineered products and infrastructure, financial institutions, insurance, media and entertainment, medical exam devices and technology, health care payers and providers, metals and mining, private equity, process industries, public sector, retail, technology and software, telecommunications, industries, transportation travel and tourism, and social impact.The company works with humanitarian organizations on a range of areas, including poverty and hunger, global health, education, community and economic development, arts and culture, philanthropy, and corporate social responsibility. The expertise developed across multiple sectors, industries and areas enables the company to keep its business nutrition at high levels. WeaknessesLagging technology enabled offerings with a poor presence in technology consulting BCG, on a relative basis to its competitors lagged in incorporate and utilizing technology in its unlike offerings and also has a relatively weak technology consulting practice. Technology consulting is one of the high potential areas for consulting companies to take advantage of the maturement potential it offers in long term.In recent years, technology companies, much(prenominal) as Capgemini and Infosys, added business and strategy consulting capabilities to their portfolio to pursue cross-sellingopportunities for consulting services for their existing clients. Further, consulting companies, such as Accenture and Deloitte Touche, developed technology capabilities pursuing fruit opportunities. As a result various companies, such as Accenture, Capgemini, Booz Allen Hamilton, IBM and Infosys, have achieved strong presence in technology consulting. However, BCG has not been a significant player in the technology consulting area.Also, most of its competitors developed strong research andanalytics platforms to support their various consulting practices by creating large outsourcing capabilities in strategic locations. The companys poor presence in high growth practice areas, such as technology adversely impacts its growth prospects and cross-selling opportunities. Lower scale of operations limits its competitive ability The companys scale of operations is comparatively lower than its competitors. Many of its competitors, such as McKinsey Company, Accenture, Deloitte and Booz Allen Hamilton, have substantially greater financial and other resources than the company.For instance, the companys competitor, Booz Allen Hamilton reported revenues of $5,859.2 million during the financial year cease March 2012 (FY2012). Also, the companys another competitor, Accenture reported revenues of $27,862.3 million during the financial year ended August 2012 (FY2012). Comparatively, BCG recorded revenues of $3,700 million in FY2012. Large scale enables these competitors to leverage on their facilities and resources to achieve operating efficiency. The company stands to lose out often in bidding for larger projects and assignments due to its lower scale which also impacts its operating efficiency significantly. OpportunitiesManagement consulting market potential in emerging markets The emerging markets are expected to record strong growth in coming years driven by their contribution to global commerce. Despite the global economic lag and recession in developed countries, the emerging markets continued to maintain growth. In coming years, the emerging markets are ciphered to increase their contribution to global commerce and consumption.This can be perceived by the growth prospects for emerging markets. For instance, the emerging and developing economies real GDP growth is forecast to reach about 5.5% and 5.9% in 2013 and 2014, respectively, compared to a growth of 2.1% in 2009. The growth is being driven by China, India, and other emerging Asianeconomies. Positive ou tlook for emerging markets provide growth opportunities for various businesses.Moreover, in recent years, most of the companies in emerging markets continue to pursue global practices in their operations. Positive outlook for emerging markets provide growth opportunities for various businesses. Moreover, in recent years, most of the companies in these markets continue to pursue global practices in their operations. BCG being one of the major players in the business consulting market is in a position to capitalize on growth opportunities in providing services for companies in emerging and developing markets.Positive outlook for non-IT end markets drives demand for consulting servicesSome of the companys non-IT end markets returned to growth trajectories in 2011. Markets including the healthcare, oil and gas, and pharmaceutical markets are forecast to show a steady growth. For instance, the US healthcare sector is providing positive growth opportunities for the company. agree to the industry estimates, the total US healthcare expenditures were $2.7 trillion in 2011, and are expected to reach $3.5 trillion by 2016.The US healthcare expenditures are communicate to grow at a compound annual growth rate of about 4.6% during 2007-11. Healthcare outlay in the US is expected to reach 20% of gross domestic product (GDP) by 2021. The global oil, gas and consumable fuels market is forecast to reach a value of $10.9 trillion in 2014, growth at a compound annual growth rate (CAGR) of about 13.5% during 200914. In addition, the US government initiatives are catalyzing the growth of new(a) energy projects. Further, the pharmaceutical industry is one of the fastest evolution industries in the world.According to MarketLine, the global pharmaceuticals market grew by 3.5% in 2011 to record a value of $782.1 billion and it is forecast to reach $971.1 billion in 2016, an increase of 24.2% since 2011. BCG conducts research and analysis across a range of industries, including bi opharmaceuticals,benergy and environment, and health care payers and providers, among others. Positive growth in such end markets will result in the origin of new projects, thereby creating the demand for the companys consulting services. ThreatsIntense competition BCG operates in a highly competitive consultancy business and requires product and solution innovation on a regular basis to create and maintain competitive edge.The company faces competition from other largeplayers in the consultancy market such as McKinsey, Accenture, Deloitte Consulting, Booz Allen, and Ernst Young International.BCG also faces competition from companies that originated in the strategic consulting environment such as Bain, firms with core competence in IT solutions such as IBM, Capgemini, Hewlett Packard, and Infosys entered and extended their presence in the consulting industry, bringing a new breed of innovations and solution design, allowing other smaller IT companies to do the same. This trend may put pressure on the margins of mainstream consultancy firms such as BCG. Intense competition in the marketplace may negatively impact BCGs growth in market share and margins.Continued and prolonged weakness in global economic outlook In recent years, the global economy has undergone significant turmoil amid stock market volatility, difficulties in the financial services sector, tightening of the credit markets, softness in the housing markets, concerns of inflation and deflation, reduced corporate profits and capital spending, reduced consumer spending and various other economic difficulties. According to industry estimates, the global economy is expected to remain weak and uncertain in 2013. The downturn in the euro zona is forecasted to continue till the end of 2013.The recent macroeconomic data, state-level regional data, and the increased volatility in the financial markets in the US shows significant downside risksto the economic growth in the near term. In addition, factors su ch as weak household balance sheetsand confidence, relatively tight financial conditions, and continued fiscal consolidation are expected to halt the growth. According to the IMF, the US economic growth is expected to fall from 2.2% in 2012 to 1.9% in 2013.Weak economic outlook could affect business prospects of the company.The company derives most of its business in strategy consulting and substantial part from government and quasi-government agencies. The government bodies in developed world have deferred their various expenditures to curtail growing fiscal deficit. Similarly, large organizations in these countries have planned to go slow on their domestic growth strategies. The company may find it difficult towin new consulting business from these regions.