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SWOT Analysis of Cognosante and Accenture

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SWOT Analysis of Cognosante and Accenture

For any business, it is essential to have a SWOT analysis as a strategic planning tool that

helps evaluate a business’s strengths, weaknesses, opportunities, and threats. The process mainly

entails examining any internal and external factors that may affect the success or failure of any

venture. Additionally, carrying out a SWOT analysis comes as an essential step for any business

since it helps develop effective strategies, allocate resources, manage risks, gain competitive

advantage, and progressively improve performance. Cognosante and Accenture comprise the two

prominent players in the technology field. This paper examines the strengths, weaknesses,

opportunities, and threats of Cognosante, comparing them to those of Accenture.

Strengths

Cognosante is a leading information technology (IT) services provider that aims to serve

state and federal agencies and healthcare organizations. The firm carries out different services

that include enterprise IT, consumer engagement, public health surveillance, data science,

telehealth, eligibility and enrollment services, and other related services. As a result, they enable

clients to avail accurate and reliable data, especially in the health sector. One of the significant

factors that have resulted in the success of the company is its diversity in different fields,

majoring in clients’ data. This has resulted in the firm developing a deep domain expertise,

which has been a crucial asset in the industry. With the diversity, the firm has also created long-

term partnerships with various organizations, government agencies, and technology providers.

Such collaborations enable the company to deliver more comprehensive and innovative

solutions. In addition, the company has different technological capabilities that stand out,

including data analytics, cloud services, and cybersecurity solutions. Having such diverse

capabilities comes in handy when addressing different technological needs in different sectors.
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Accenture is a professional services firm serving globally but headquartered in Ireland,

specializing in IT services and consulting. As a consulting firm, Accenture helps clients reduce

cost and also assist in technology outsourcing. The firm carries out different functions in

different business areas, including customer relationship management, supply chain

management, business strategy, and technology. One of its strengths is that the firm stands as one

of the renowned companies in the world as a result of its main services. The services it offers

lead to its high performance and a reputation that is hard to refuse. A good reputation opens

doors for even more clients. Consequently, it makes the company have a large clientele in

different sectors. In addition, as a renowned company, Accenture has a large number of skilled

workers and specialists, making it one of the expert firms in different sectors.

Weaknesses

While Cognosante has several strengths, it also faces particular weaknesses that could, in

a way, hinder its growth and competitiveness in the market. Weaknesses primarily mean the

places where any business can improve (Gurl, 2017). One of its areas for improvement is that the

company needs more diversification as it tends to mainly focus on healthcare. Over-reliance on

one industry can make the firm vulnerable to different changes in the industry’s regulations.

When compared to larger competitors like Accenture, Cognosante functions on a rather small

scale. Lacking such footing as that of Accenture, Cognosante may lack some capacity to compete

for global connections.

Accenture has a set of weaknesses, which comprises areas of potential improvement.

Firstly, just like Cognosante, Accenture tends to depend on one field, consultancy, as a major

source of revenue. Having to depend on one sector, despite having different ones, can be bad for

the company’s future. Besides, the company has several sectors that work simultaneously. As a
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result, there can be instances where communication and coordination may be an issue between

the different teams.

Opportunities

Cognosante, like any other business, needs to recognize and make good use of

opportunities that help sustain its market presence and competitiveness. Opportunities, for any

business, act as an external positive factor that is directed towards the company. As a result, the

company may incorporate them to grow its brand sales and reputation (Teoli et al., 2019). There

has been exponential growth in telehealth and remote car services, which gives Cognosante an

opportunity to extend its services in both fields. As a result, the firm will end up supporting

virtual healthcare delivery. Additionally, government agencies all over the world are looking for

opportunities to invest in healthcare infrastructure and services. Cognosante can take up this

opportunity as a way to broaden its presence in the public sector through the acquisition of

government contracts.

Accenture, as a global giant in consulting and technology services, is presented with a

wide number of opportunities that it can leverage. Mergers present rather popular areas where the

company can expand. For instance, Accenture has in the past acquired Gaspo, a Brazilian

analytical tool firm (Accenture, 2015). Through such purchases, Accenture’s analytical power

might be enhanced, which may positively contribute to its expansion. Besides, there is also an

opportunity in the developing green laws, which aim to level the playing field for all industrial

participants. Such a field offers Accenture a chance to showcase its positive stance in upcoming

technologies and have some degree of market dominance.

Threats
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Threats, for any business, can jeopardize its market position and business operations.

Threats comprise external negative factors that are directed toward the company (Leigh, 2009).

Cognosante, on the one hand, is faced with one major threat that mainly comes from regulatory

changes in their services. One such sector is healthcare, which is faced with frequent changes in

regulations. As a result, it may impact the firm’s clients and demand for its services. There is a

need for the company to remain updated and adapt to the regulatory shifts that may arise. Also,

since the company deals with client’s data, it faces cybersecurity threats, which may lead to

damage to its reputation and certain legal liabilities.

Accenture, on the other hand, faces the threat of an inconsistency of special items. In the

past, the company has produced a wide number of products, which have frequently been met by

the competition of other companies. The firm is also faced with the issue of having new items

produced in an irregular manner, which results in the rise and fall of the sales number over time.

Additionally, there are always other participants in the businesses who are always on the rise,

which may result in some downward pressure on the company’s profitability and overall sales.

This may be a result of customers always on the lookout for better items in the industry. Besides,

the demand for profitable goods and services is, in a way, seasonal.

Answering Questions

Cognosante, as an IT services provider, functions to create a safer, healthier, and more

equitable system for all. Functioning more innovatively, the company helps healthcare, civilian,

and defense agencies deliver outstanding public services and programs. The success of the

company has been a result of leveraging its strengths and its position in the market. The strengths

of the company combine tangible and intangible features. The company’s strengths include its

wider domain expertise, which helps it comprehend a range of factors affecting different sectors.
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As a result, Cognosante is able to provide well-suited solutions for its clients, improving quality

and efficiency. Additionally, the company has crafted a number of partnerships with different

organizations, government agencies, and technological providers.

Cognosante’s competitors have had positive attributes that offer some degree of

competitive pressure on the firm. For example, a firm like Accenture has the benefit of having an

extensive global reach than Cognosante. Such a global presence helps the company have a large

clientele. Different firms like Accenture have brought in an extensive and diverse client base.

The surging clientele shows the trust and confidence that individuals place in the organizations.

Additionally, competitors add to their advantage by adding a diverse service portfolio to their

name, meeting the needs of different industries.

Moving forward, the company is looking forward to expanding and diversifying into new

segments of the different sectors, including areas like telehealth and remote care. Diversifying

into the different segments will allow the company to have some competitive edge and also take

advantage of the expanding markets. Cognosante has a limited international presence when

compared to its competitors. The firm is looking at opportunities to establish a more viable

global footprint. As such, creating and maintaining a client base will be something that the firm

is looking forward to achieve in the future. Besides, for any technological firm, there is always

the need to continue with efforts focused on technological advancements. Cognosante is

committed to staying updated with emerging technological advancements.

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References

Accenture. (2015). Accenture completes acquisition of Gapso, expands its advanced analytics

capabilities in Brazil. Newsroom. Retrieved from

https://newsroom.accenture.com/news/2015/accenture-completes-acquisition-of-gapso-

expands-its-advanced-analytics-capabilities-in-brazil

Gurl, E. (2017). SWOT analysis: A theoretical review.

Leigh, D. (2009). SWOT analysis. Handbook of Improving Performance in the Workplace:

Volumes 1‐3, 115-140.

Teoli, D., Sanvictores, T., & An, J. (2019). SWOT Analysis. NCBI Internet Bookshelf.