The Monitor Group Case Study Help
Weaknesses
- Company is weak in terms the huge market competition in the US. There are more than 600,000 people in the US who calls themselves as independent consultants. Because of them, the client are divided in all the small and large firms which minimize the revenue of the firm as there is no barrier in the entry of anyone.
- Financial institutions and banks do not show interest to advance loans and financial help to the consultancies because of the risk that they will not be able to return them back.
Opportunities
- Monitor Group can rapidly expend because if it functions in India, the startup cost and other expenses are lower as compared in the US
- India has more educated labor like India has more undergraduates, doctors, engineers Masters of Business Administration. The labor cost is also low, so it is an opportunity for Monitor Group to grow internationally.
Certifications of consultancy makes the company valuable in the market which is also an opportunity for growth purposes..
Threats
- The culture of India is a big threat for Monitor group. The norms, values and social living standard of Indians are different so functioning in an Asian county can be a problem in future growth.
- Economic factors of India, unstable economy and legal laws of the companies, labors and consumers is a threat Monitor Group has to consider.
- Large number of competitors offering same even better services to the people is a threat which is an external factor and cannot be controllable by the company.
Strategy Formulation
Alternative Strategies
Alternative 1: Business Unit in India
This alternative state that the company can built or acquire the unit in India as,the major competitor of Monitor Group, McKinsey, appeared to be talking the same approach of functioning in India.
Pros
- Low startup and operational costs.
- International growth.
- English-speaking and highly educated people of undergraduate, graduate, and MBA’s are available with the wages below from the US and Europe.
- An opportunity for the company to compete its rivals by providing better services.
- This unit can serve external clients of Monitor without a prior connection with Monitor.
Cons
- Technology is not as advance as in the US.
- Unimproved Infrastructure
- Underdevelopment issues like traffic, power cut etc.
- Cultural differences.
Alternative 1: Continuing in the US
In this alternative the company can grow in the US with more strategies in consultancies can to make a better market position without international growth. The total national income and gross national income is higher in the US.
Pros
- High profitability because of the high total and gross national income.
- Development and no problem of infrastructure or any other environmental issue.
- No legal, social, political, and cultural problems
Cons
- Limitation in international growth.
- High costs of infrastructure and other expenses (salaries, wages etc.)
- Large number of competitors including the major competitor McKinsey.
- Lack of skilled, educated and low wage labor as compared to India
Recommendation
As the company and the CEO has two options to decide that weather the Monitor Group should setup a unit in India or not are opening a unit to function in India or continuing functioning in the US.First option has more chances of growth because of the low labor and other costs, education of labors, serving of external clients, and global extension. The company has a chance to build a unit to provide better services to the Indians as well.........................................
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