AmerisourceBergen Competition
Now Viewing AmerisourceBergen's competition in: Consulting Services
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What types of clients does the company have? - Major clients include Fortune 500 companies, midsized or small companies, government agencies, law firms, and banks.
How much of the firm's business is with repeat customers? - Many small firms get the majority of work from repeat customers.
Does the firm have a dominant customer? - Some agencies rely heavily on one or two key clients.
How much of the firm's work is on multiyear contracts? - Multiyear contracts are a preferred way to bill clients, generating consistent cash flow.
How does the firm find new customers? - Seminars, trade shows, industry conferences, advertising, promotional mailing, or a direct sales force.
Do senior members spend much time establishing new customer contacts? - In many firms, senior members bring in most new business.
Who are the firm's major competitors? - Competition can come from other consulting firms, internal consulting divisions of large companies, and offshore consulting agencies.
Is a competitor firm considered the price leader? - Larger firms often set the standard for billing and compensation rates.
How does the company cross-sell services? - Consultants increasingly offer clients a variety of services.
Competitive Landscape
Demand is driven by corporate profitability and the overall health of the US economy. The profitability of individual companies depends largely on the special expertise the firm provides to clients. Large firms have advantages in the range of services offered, which often span across all three major consulting disciplines. Small firms can compete effectively by specializing in new technologies or niche industries. The industry is labor-intensive, particularly for payroll services. Average annual revenue per employee is around $100,000 ($40,000 in the payroll services industry).
Business Challenges
CRITICAL ISSUES
Dependence on Economic Growth - Consulting revenue depends on economic growth, and especially on corporate profits. Consultants are considered an expendable (or at least, delayable) cost when companies face an economic slowdown. During recessions, corporate profits may fall 10 percent.
Employee Attrition - Consulting firms depend heavily on the intellectual capital of employees, yet most companies face high levels of voluntary attrition. The typical employee tenure at a major consulting firm is around two years; companies regularly face annual attrition rates of 20 to 40 percent. Work conditions are difficult, as long hours and extensive travel are the norm. Companies spend significant resources recruiting new employees and providing incentives to retain them.
Industries Where AmerisourceBergen Competes
- Pharmaceuticals
- Pharmaceuticals Distribution & Wholesale(primary)
- Business Services
- Consulting
- Transportation Services
- Logistics Services
