University of Portsmouth Business School
Hampshire PO5 0AN
Market Orientation, Competitive Advantage, Customer Value, Implementation, Change, Obstacles
This paper analyses PricewaterhouseCoopers Middle East (PwC ME) recently adopted “go-to market” operating model. The paper suggests that the market oriented strategy implemented by PwC ME will help it sustain an enduring competitive advantage if it was updated regularly baring in mind that market conditions and competitive threats never stand still. The paper proposes that PwC ME can minimize the effect of the obstacles associated with the implementation of their new model by embedding the change into the culture of the company.
Every organization must be in sync with its operating environment. In order to have an optimal strategy, firms usually apply the SWOT analysis in order to point the external (strengths & weaknesses) and internal factors (opportunities and threats) affecting them. These forces might be pulling the firm in opposite directions, as there is a gap between market demands (or external factors) and internal firm resources, this is known as the paradox of market and resources (De Wit, Meyer, 2010, p.250).
As the competition is becoming fiercer and customers are seeking the maximum value, PricewaterhouseCoopers Middle East (PwC ME) recognized the need of becoming more market oriented. This required shifting from a competency-focused strategy to an industry-focused strategy. The go to market model implemented by PwC ME will help it reach its targets if it was applied properly taking into account that the adoption of that model is a significant change management challenge that requires a qualified and mature leadership team that is able to lead a practice.
The paper details the components comprising PwC ME new go to-market operating model, analyses aspects of the change process and explains the issues associated with the incurred change.
Go to Market Operating Model Objectives
The foremost goal for market-driven firms is creating superior customer value (Day, 1994). A market-driven firm that focuses the processes and capabilities resulting from its market orientation on strategically important opportunities and problems achieves superior profitability (Day, 1994). As Hunt and Morgan (1995, p. 13) state, “knowing its customers and competitors should allow the firm to respond to changes in consumer preferences and competitor strategies in an informed, perhaps even optimal manner”.
PwC ME go to market operating model is a transitioning tool used to help it shift from being competency led to becoming industry focused resulting in increased value to clients. This model is designed to: Increase revenues and improve margins
Identify and respond to opportunities quicker and with higher quality Increase levels of coordination and collaboration between and within the lines of service Maximize ability to respond to bigger and more complex projects and opportunities by availing industry and deep functional expertise Place the right resources on the right project/opportunities regardless of where they are located, “Borderless Network of Resource Pool”
Key Model Attributes
1.Chosen Industry Sectors and Client Segments
Finding attractive markets, determining customer needs, and developing goods and services to meet those needs are the key capabilities for strategically focused market-driven firms (Day, 1990).
Based on research and analysis of various markets, experience, clients’ needs, PwC ME decided to focus on specific most active industries including; oil and gas, real estate, financial services, private equity, telecommunication and healthcare.
PwC ME segmented its clients into 4 tiers and will actively target the top 3 tiers with increasing levels of planning, coordination and management as indicated in Figure1: Figure 1: PwC ME Client...