Management Consulting

September 2018

Sectorwatch

The consulting industry is continuously adapting to meet the needs of its client base. Rather than forcing management consultant firms to revise existing business models, disruptive innovation and technology have been a crucial source of profit. Clients on the front line are paying huge sums for strategic advice on coping with digitalization and insurgent competition in the guise of agile startups and major industry disruptors like Amazon.

 

Industry Trends:

  • Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
  • Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
  • Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants