Booz, allen & hamilton business model

AOSI-2007-CASOG-55829

AOSI 2007
Caso G: Booz, Allen & Hamilton

1. Analyze Booz, Allen & Hamilton using the competitive forces and value chain models.
Competitive forces:
The bargaining power of customers: High
In this industry, the power of clients is always rising, due to every time bigger technological demands and great easiness of choice regarding other suppliers of international management and technology consulting. It is necessary to have a huge power of differentiation at a technological level, with an important sense of innovation, regarding what is in accordance to the clients’ expectations.
The bargaining power of suppliers: Very Low
In this context, the concept of supplier is not applicable.
The intensity of competitive rivalry: Very High
In this industry there is an enormous rivalry between the great enterprises that always try to be more sophisticated in the use of information technology.
The threat of substitute products: Low
At least nowadays there is no product in line to replace specialized consulting services.
The threat of new market entrants: Low

Value chain:

04-11-2007 23:59

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AOSI-2007-CASOG-55829
Ideation:
Clear innovation strategy and company focus
Strong costumer understanding and feedback mechanism
Clear leader / follower strategy
Consumer insights and trend analysis capabilities
Ability to incorporate and extend external ideas
Incentives to promote ideation
Project selection:
Few large big bets
Incremental customer driven improvements
Incorporates breakthrough/core research/technologies
Link project selection to overall strategy
Clear governance and decision making
Effective tools to track and measure value
Product Development:
Disciplined and effective stage/gate process
Bottleneck and “congestion” elimination
Effective translation of customer requirements to product design
Clear metrics supported with “tough” decisions
Effective project and resource management
Efficient R&D machine