Earlier we delved into the SWOT Analysis of HCL Infosystem, one of the global market leaders in the IT industry. In this case study, we will evaluate the SWOT Analysis of Accenture.
Accenture is one of the world’s major consulting firms, with four high-performing divisions. Accenture Multimedia, Accenture Technologies, and Accenture Operations all have strategies. Executives use the company’s consulting, infrastructure, and outsourcing services.
Accenture’s marketing efforts have benefited with their market position. Marketing grows over time in response to the preferences of contemporary society. If you want to be up to date with today’s effective marketing, attend our Free MasterClass on Digital Marketing, led by IIDE’s Founder and CEO, Karan Shah.
Let’s begin this SWOT Analysis of Accenture with the company’s background, founding, finances, services, and market competitors.
Accenture plc is a global professional services firm headquartered in Ireland that specialises in IT services and consulting. Accenture started off as Arthur Andersen’s technical and business consulting branch. Andersen Consulting changed its name to “Accenture” in 2001.
Accenture assists clients in cost reduction and technology outsourcing. Employees have worked in major business areas such as customer relationship management, supply chain management, business strategy, technology, and outsourcing in a range of sectors.
The organisation has ten Innovation Hubs around the United States, each with a team of designers, engineers, and technology specialists who collaborate with customers. New York City is home to the flagship Accenture Innovation Hub.
|Founder||Arthur E. Andersen|
|No. of Employees||624,000|
|Market Cap||$199,585 Million (2021)|
|Annual Revenue||$50.53 Billion (2021)|
|Net Profit||$5.91 Billion (2021)|
Services by Accenture
Following are the products manufactured and sold by Accenture:
- Business Strategies
- Digital services
- Technology services
- Operations services
Competitors of Accenture
Following are Accenture’s major competitors:
- McKinsey & Company
- Boston Consulting Group
- Bain & Company
- Tata Consultancy Services (TCS)
SWOT Analysis of Accenture
1. Strengths of Accenture
Accenture, as one of the industry’s leading organisations, possesses a number of advantages that enable it to prosper in the marketplace. These advantages not only help it maintain market share in existing areas but also help it break into new ones.
- Renowned reputation – Accenture is one of the worlds biggest firms and have had high revenue due to its focus on consultancy, operational services, management, digital, technology and high standards and morals which leads to its high performances
- Strong clientele connection – Accenture has a large client base in a variety of sectors throughout the world. They work with over 500 multinational corporations. Accenture offers services in more than 40 businesses across five sectors.
- Client friendly environment – Accenture has a client-friendly environment that prioritizes clients requirements and needs which has led to strong and trusted relationships with clients
- Diverse capabilities – Due to its works in different sectors such as communications, technology, financial and public services, and product resources it has created diverse capabilities within its team. Dedicated and trained manpower for each sector is the reason why Accenture is different from the rest.
- Experts and professionals – Accenture has a large number of skilled workers and specialists behind it to get things done, with a customer base ranging from consulting to IT services. As a result, Accenture has established itself as a “specialist” or “expert” in a variety of sectors, employing a large number of industry specialists.
2. Weakness of Accenture
Accenture’s weaknesses are places where it can improve. Weaknesses are places where a company can improve using SWOT analysis. Strategy is about making decisions, and weaknesses are areas where a company can improve using SWOT analysis.
- Lack of coordination – Due to several sectors working simultaneously there can be a lack of communication and coordination in teams. Accenture has been trying to serve several mid-size companies as well but faces stiff competition which can further lead to slower growth.
- Dependence on consultancy – Consultancy is a major source of revenue in Accenture, despite having different sector works which can be bad for companies long run.
- Investment in R&D – Accenture has not been able to compete with the leading players in the industry in terms of innovation and R&D. It has come across as a mature firm looking forward to bringing out products based on tested features in the market.
3. Opportunities for Accenture
Opportunities are external positive factors directed towards the company or its industry. It is important for the company to analyse their opportunities and incorporated them to grow brand sales and reputation. Following are the opportunities of Accenture –
- Mergers – Accenture recently acquired ‘Gaspo,’ a Brazilian analytical tool firm. Agilex Technology, a provider of software and IT services to the US government, has been bought. It’s all about departments. Accenture’s analytical power might be enhanced as a result of such purchases, allowing it to expand.
- New green laws – The new possibilities will level the playing field for all industrial participants. Accenture will have a fantastic chance to demonstrate its leadership in new technologies and acquire market dominance in a new product category.
- Low inflation – A cheaper inflation rate provides more market stability and allows Accenture clients to obtain loans at a lower interest rate. After years of recession and a poor growth rate in the business, an economic rebound and increase in consumer spending provide a chance for Accenture to gain new clients and market share.
4. Threats to Accenture
Threats are external negative factors directed towards the company or its industry and lack of recognition and action can lead to negative consequences on the company’s sales and image. Following are the threats of Accenture –
- Inconsistent supply of unique items – The firm has produced various products over the years, but they are frequently in response to the development of other companies. Second, the supply of new items is irregular, resulting in high and low swings in sales numbers over time.
- Competitive pressure – Over the previous two years, stable profitability has expanded the number of participants in the business, putting downward pressure on both profitability and overall sales. The demand for highly profitable items is seasonal, and any unforeseen occurrence during the peak season might have a short- to medium-term impact on the company’s profitability.
In light of this information, we come to an end on the SWOT Analysis of Accenture. Following section, let’s briefly conclude and discuss the takeaways of this case study.
Accenture, despite facing a lot of competition, has been able to become the market leader due to its investments and strong network. Accenture enjoyed a dominant position in the past due to its tech, but lately, it has been overshadowed by its competitors as they were able to successfully adapt to the new medium. Expert workers and strong connection with clients is the main reason behind Accenture’s success.
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