In our previous blog, we did a comprehensive study on SWOT Analysis of a Multinational Professional Services Network, EY. Here we will understand the SWOT Analysis of BDO Global.
The fifth-largest accounting network globally – BDO Global is a professional network of accounting, consulting and business advisory working internationally on a major level. Since 1963, BDO has been continuously responding to their clients and their people’s ever-changing needs.
Due to its intensive marketing endeavours, BDO Global continues to rule in the consulting services area. With such a dynamic environment, it is a must for all businesses to focus on their marketing strategies and cope with the latest trends to succeed over their competitors. If you want to stay updated with the latest trends, check out our Free MasterClass on Digital Marketing 101 by our CEO and founder of IIDE, Karan Shah.
Do you want to know how BDO Global became a market leader in professional services? In this blog, we will cover the SWOT Analysis of BDO Global and learn from it. But before that, let us first understand what the company is about, its history, competitors and much more.
About BDO Global,
BDO was initially known as the Binder Seidman International Group when it was founded. It was formed by well-established respected firms that were already ruling the consultancy and advisory market in Canada, Germany, the Netherlands, the UK and the USA. Their purpose for collaboration was to share and expand their knowledge to better serve their clients.
Finally, in 1973 the Binder Seidman International Group got the name BDO which was made up of the three initials European firms – Binder (UK), Dijker (Netherlands) and Otte (Germany). Today, BDO is global and has a subsequent strength of 97,000+ employees operating in 164 countries and the business has grown into an US$11 billion business in the last 50+ years of the journey of BDO Global.
For the year ended 30 September 2021 BDO announced a total combined fee income of more than US$11 Billion, showing a year on year growth of 10.8%. BDO’s main clients include Facebook, Apple, Fidelity, Michelin, Diners Club, Lone Star, Intercontinental, Tyson Krupp, SAS and many more.
|Founder||Bernhard Binder, Hans Otte & M. L. Seidman|
|No. of Employees||97,000+|
|Market Cap||$548.536 Million (2022)|
|Annual Revenue||US$11.8 Billion (2021)|
|Net Income/ Profit||P32.484 Billion (2021)|
Services by BDO Global
- Professional Services
Competitors of BDO Global
Here are the top 5 competitors of BDO Global
- Grant Thornton
- RSM International
- Ernst & Young
SWOT Analysis of BDO Global
A SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like BDO Global to compare its business and performance to that of its competitors.
It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of BDO Global.
To better understand the SWOT analysis of BDO Global, refer to the infographics below:
Below is an explicit guide to the SWOT analysis of BDO Global.
Strengths of BDO Global
BDO Global has numerous strengths that help it to thrive in the marketplace. Some of the strengths of BDO Global are
- Advance Tax Advisory: BDO Global professionals have the experience and industry knowledge to help you with all your tax matters – locally and globally.
- Strong Client Relationship: Dealing with BDO is different. Their personable and practical approach ensures strong working relationships with all their clients which goes like working on individual assignments. BDO Global bids a high level of access to partners in timely, straightforward advice and insight.
- Experts and Professionals: BDO’s diligent and experienced advisory services teams across the world-class experts who specifically sustain knowledge in industry and technology and have the resources to respond rapidly to their clients’ needs. Professional staff lead the development, helping BDO Global provide exceptional services.
- Business Services & Outsourcing: BDO Business Services & Outsourcing bids firms with a range of accounting, payroll and compliance services to support their growth and changing requirements within local markets as well as globally.
- Communication: BDO Global is believed to give significance to timely and open communication. This is why BDO Global’s clients can directly exchange their thoughts with professionals with a deep understanding of the respective industries. Exchange of thoughts is also carried out in each service.
- Reliable Commitments: BDO provides high-quality and reliable professional services. To achieve this target, BDO Global has implemented strict standards for client services that should be satisfied by them while establishing a framework to collect feedback from clients.
- Renowned Reputation: BDO Global is one of the world’s biggest firms and has had high revenue due to its focus on consultancy, operational services, management, digital, technology and high standards and morals which leads to its high performance.
- International Operations: BDO Global is not only providing services in European regions but also in the US, the UK, Australia, China, Canada, Chile, Ireland etc with a global organisation that extends across 164 countries and territories, with 95,414 people working out of 1,713 offices.
- High level of Client Satisfaction: BDO Global has a customer-focused approach. It has loyalty programs for its clients. Clients are loyal because of its customer-focused approach. It has a good environment for employees and a shift in culture that is guided by the management.
Weaknesses of BDO Global
Weaknesses are aspects of a business or brand that can be worked upon. Here are some of the weaknesses of BDO Global:
- Managing a Remote Workforce: One of the weaknesses of BDO Global is the challenge of managing a remote workforce. The global pandemic covid-19 coerced businesses to increase their capacity to conduct business virtually.
- The Need for New Skills: Keeping up with the new skills in this dynamic business world is the most difficult thing. Businesses require the right people with specialised skill sets, and sometimes the company can’t keep up with it.
- Safety of Client’s Information: BDO Global had once been alleged of passed the client’s information. Such misunderstandings can cost BDO Global customers’ trust and they can switch to BDO Global’s competitors.
- Investment in R&D: With competitors having their own research centres, BDO Global is lagging behind in their R&D department in terms of innovation even though they are spending a huge amount on this segment.
- Dependence on Consultancy: Consultancy is a major source of revenue in BDO Global, despite having different sector works which can be bad for companies long run.
- Lack of Coordination: Due to several sectors working simultaneously there can be a lack of communication and coordination in teams. BDO Global has been trying to serve several mid-size companies as well but faces stiff competition which can further lead to slower growth.
- Lack of Growth: The company has been in this industry for a while and as compared to other public accounting, tax, consulting and business advisory companies like KPMG, EY, PwC etc, the growth is very low.
Opportunities for BDO Global
Opportunities are potential areas of focus for a company to improve results, increase sales, and, ultimately, profit. Some of the opportunities for BDO Global are
- Partners & Staff are Accessible: Clients know the people BDO Global are dealing with, creating a relationship that ensures every client feels valued and understood. Employees are more invested because BDO Global is directly dealing with clients. Managers encourage collaboration in an atmosphere of trust, harmony, mentoring and consulting clients benefit from BDO’s collective professionalism.
- Sustainable Approach: Customers are more cautious towards the environment and they want to have a sustainable way of living. BDO Global believes in sustainability and this will provide leverage over its competitors and gain the trust of the future target market.
- Stable Cash Flow: With the bank having more cash now, the company will be able to invest in new technologies and product sectors. This will provide BDO Global with broader opportunities in other product categories.
- Easy Acquisitions: Since BDO Global has already established itself at the global level, it’s easier for them to acquire firms with smaller market shares.
- Attract and Retain Talent: Everybody looks forward to working at firms where employees have a good working environment, BDO Global can use it to select the best human resource available.
- Technological Development: Technological advancement could be used to automate their work, which will save the cost. Also, their huge revenues make it easier to make heavy investments in technology.
Threats to BDO Global
Threats are environmental factors that can be harmful to a company’s growth. The following are some of their threats:
- Intense Competition: BDO Global faces cutthroat competition from firms like Endava, Boston Consultancy, Accenture, KPMG etc and other businesses that provide similar services.
- Currency Fluctuation: Where currency fluctuation happens, international projects appear to be hitting. Which is a serious challenge to the business.
- Knowledge Centres: This can have a counter effect on consulting firms’ business when firms constitute their in-house knowledge centres.
- Government Policies: Government Policies are the major factors that affect the business of a company like BDO Global.
- Lack of Confidence: With a lot of regulatory actions reported in recent times such as the firm’s global network of affiliates have been involved in regulatory actions as well as lawsuits due to which clients are losing their confidence in accounting firms.
This ends our elaborative SWOT analysis of BDO Global. Let us conclude our learning below.
BDO Global is a well-reputed company that is a trusted one among business clients in the world. In the SWOT analysis of BDO Global, we learnt that it has reached the markets of its nation but is still facing the problem of marketing its products internationally due to fewer funds and inefficient financial planning.
With increasing competition in such markets, companies need to do better digital marketing efforts. In today’s world, people need to know more about the marketing aspects used to boost the company’s growth. If you are intrigued with the above piece of information in learning more and upskilling, check out the 3 Months Advanced Digital Marketing Course by IIDE to know more.
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