Bain’s Way (Policies, Ethics and Beliefs)
3/4th of consulting market having companies with >10
1 Meritocracy
2 Achieving tangible results for clients
3 No “up-or-out” System
4 Integrity and Professionalism
5 Generalists; who also value expertise
Consulting Market Scenario 1998
members
65% market share by IT consultant
Hour Glass Structure of consulting industry
• Threat of New Entrants: Low
Even though small players exist the threat from new established players is minimal
• Power of Buyers: High
Switching cost are low as there are multiple reputed consulting firms
• Power of Suppliers: Low
Abundant talent pool often result in low supplier power, unless services are highly
specialized
• Threat of Substitute: Low
There are limited substitutes from outside the industry, who are at par with
consultants
• Rivalry: High
Firms are usually competing for the same clients that are willing to pay the
premium prices