Management consulting is a $223.1 billion industry in the US. The industry is projected to grow at an average annual rate of 1.8% to reach $243.9 billion in 2022, according to data provided by IBISWorld. Corporate strategy services account for the largest share of industry revenue at 38.9%. This segment has grown in recent years as companies look to hire consultants to develop new ideas and business plans.
Consultants operate in highly fragmented and competitive industry. One of the key success factors identified by IBISWorld is the possession of specialized knowledge through a highly skilled workforce. That being said, more than 80.0% of industry operators are nonemployers. So how does the vast majority of the industry maintain access to a highly skilled workforce? Through subcontracting, another key success factor identified by IBISWorld.
Access/Information has a history of partnering with business consultants. Corporate strategy is driven not only by the advice of the consultant, but market data to show evidence of where the industry is growing and the best opportunities that exist. In fact, consulting companies are identified as one of the key buying industries of secondary market research firms. Consultants deal with a variety of clients operating in a number industries, and are typically able to pass the cost of the research to the end customer.
For example, a consulting company based in Colorado that focuses on working with small businesses contacted Access/Information on behalf of a high-end specialized retail company. The company was interested in identifying strategies and business models to help grow their business. The consulting company advised that the retailer examine the go to market strategy of its competitors.
As a result, we researched the retailer’s top three competitors and created benchmarking profiles that included growth strategy, distribution models, and differentiators. We were able to determine that all of the company’s competitors promoted their brand through messages of a prominent company and lifestyle culture. In addition, all of the competitors utilized a network of dealers located across the country to distribute their products.
Armed with this evidence, the consultant and the retailer together devised a customized strategy that allowed the company to expand its offerings by creating a distribution network, and effectively increase its market presence.
Do you have the right data and team in place to help you grow your business?