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Accenture plc (SWOT Analysis) - June 2011

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Accenture plc Overview

 

Accenture (or “the company”) is a global management consulting, technology services and outsourcing company. The company has experience, capabilities across most of the industries and business functions. Its business is structured around five operating groups, which together comprise 19 industry groups. Accenture provides services to its customers through a global delivery network of over 50 centers. It mainly operates in Americas and Europe, Middle East and Africa (EMEA). The company is headquartered in Dublin, Ireland and employs 204,000 people.


Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Global reach and scale providing continuous business
  • Broad portfolio of offerings enabling it to serve diverse customer needs
  • Strong customer base provides enhanced brand image

Weaknesses

  • Low margins compared to competitors

External

Opportunities

  • Strategic acquisitions further strengthens Accenture’s market position
  • Strong pipeline of contracts ensures stable revenue
  • Growing worldwide IT spending
  • Positive outlook for health care IT spending.

Threats

  • Intense competition likely to erode market share
  • Negative publicity related to place of incorporation
  • Increasing regulation in government contracting may increase compliance costs
  • Contract terminations may negatively impact revenues.
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