Accenture: Major Strategic Challenges

Major Strategic Challenges

10.1 Market Locations.

Despite all these honours and recognition, the business faces some crucial strategic challenges that keep their CEO awake. The first weakness and obstacle the firm faces are their incapability to fully take advantage of their international connections. The company's market position and their brand power are under constant threat from competitors. With close to fifty delivery centers currently in operation across nearly 120 countries, Accenture’s global presence is superb (Accenture, 2018f). However, rather than utilize these platforms and locations for expansion, establishing and carrying out their operations, the company has been content to operate from the United Kingdom where more than 80%

While it is a strength in that they provide multiple services, it can be a major problem for the management because each of the departments seems not contact effectively. Each department has their employees in different locations of offices and therefore it seems there is usually little to no exchange of communication between either team. Without the link or connection, no one knows what the other is doing, or if their actions are affecting the other either positively or negatively. In such instances, there is rampant redundancy, which increases expenses. Additionally, without communication, learning and the exchange of education is little may reduce the employees’ productivity and corporate competitiveness. With operations in close to 17 industries, coordination become essential to success (Accenture, 2018i). There are cases where the management will be stuck in conflict thoughts due to different interests and

Their competitors have been increasing in number in the last several years. It is an outcome driven by the firm’s continued outsourcing of their services which has helped build small companies and limit their growth in knowledge and expertise. Furthermore, their focus on consulting services has left them in a highly saturated market with no exit strategy. It is a sector with low barriers of entry, but also a massive availability of options of substitute service providers, meaning low market share and growth locally and internationally.

To date, the company has remained resilient, but they need to keep away from large corporations and be firmer in their venture to involve in serving small and medium-sized companies. They also need to address other aspects of their operations that threaten to promote their competitors such as their lack of expertise in various upcoming and existing industries such as technology. Their primary focus and expertise lies in consulting (Accenture, 2018j). They also need to differentiate their products and services so as to meet more of the customer’s needs but also to increase their competitive advantage. The more the competitors in an industry, the stronger the reputation of the competition grows. Therefore, their articulation needs to be flawless and trustworthy if longevity is to be