Key Competitors

Key Competitors
Bain & Co: Among the world’s leaders in international strategy consulting,
Bain, which split off from BCG in 1973, boasts a consulting staff of more
than 2,100. The firm’s client base consists primarily of diversified,
international corporations in all sectors of business and industry, such as
financial services, e-commerce, retail, health care, consumer products and
technology. According to the company, its clients have historically
outperformed the stock market by three to one.
Booz Allen Hamilton: Booz Allen Hamilton racked up $2.7 billion in sales
in 2004, and is a powerhouse in government-side consulting, landing major
contracts with the Department of Health and Human Services, NASA, and
other agencies. Booz Allen garners 80 percent of its revenue from previous
clients. Not a pure strategy firm, it puts an emphasis on transforming
businesses rather than merely prescribing change. The firm reports spending
one-third to one-half its time helping clients implement its recommendations.
Booz’ industry practices are stronger and more specialized than BCG’s,
though BCG is still its superior in the strategy realm.
McKinsey & Co: The consulting industry leader, known simply as “The
Firm” among its employees, counts such notable entities as Pepsi, IBM and
General Motors among its clients. Founded by James O. McKinsey in 1926,
the firm currently operates 82 offices in 44 countries with more than 7,000
professional employees. McKinsey is not the world’s largest consultancy, but
size isn’t everything. Overall, McKinsey serves more than 60 percent of the
Fortune Global 500 and 77 percent of the U.S. Fortune 100. McKinsey is the
only consulting firm that BCG will consider a rival for strategy engagements
and worldwide reach, and McKinsey reluctantly returns the favor.
Mercer Management Consulting: Formed in 1990 by the merger of Temple,
Barker & Sloane and Strategic Planning Associates and owned by
professional services giant Marsh & McLennan, Mercer has grown rapidly,
opening offices in Europe, the Pacific Rim and Latin America and acquiring
a number of boutique consultancies. Today, Mercer Management Consulting
has approximately 1,400 consultants and support personnel in 22 offices
worldwide. Though it was initially considered a brazen startup in a field
dominated by giant, established firms such as McKinsey, Mercer has
expanded its practice quickly by aggressively pursuing clients and rooting its
work in a series of well–publicized books. It has developed special industry
expertise in communications, energy, financial services and manufacturing.
Monitor Group: Founded in 1983 by a group of professors and consultants,
including Michael Porter (creator of popular case interview framework
Porter’s Five Forces and a consulting guru), Monitor tries to bridge the gap
between academic ideas and business realities. Though it’s only
medium–sized, Monitor has developed a number of practices and expanded
its client list to include everything from Fortune 500 companies and
international firms to government agencies and major nonprofit
organizations. Through its 28 offices in 23 countries, it offers advisory
services in areas including private equity and venture capital, e–commerce
incubation, and mergers and acquisition–related transactions. Though much
smaller than BCG, this strongly strategy–oriented consultancy sees itself as a
strong competitor.