deloitte

Businessmodel of Deloitte

Customer Segments

Deloitte has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at firms that seek consulting and advisory services.

Value Proposition

Deloitte offers three primary value propositions: accessibility, innovation, and brand/status.

The company creates accessibility by offering a wide variety of options. A significant element of its strategy is growth through acquisition. This has enabled it to add many capabilities to its portfolio.

The company places a strong emphasis on innovation. It operates Deloitte Innovation Centers, a collection of programs designed to generate creative solutions in various industries. The specific centers are as follows:

  • Deloitte U.S. Center for the Edge
  • Deloitte Center for Energy Solutions
  • Deloitte Center for Financial Services
  • Deloitte Center for Health Solutions
  • Deloitte Center for Regulatory Strategies The company has established a strong brand as a result of its success. It has the second-largest professional services network globally in terms of revenues and is one of the “Big Four” accounting firms, along with EY, PwC, and KPMG.

It has over 225,400 employees serving over 150 countries and territories, works across 20 industries, and generated $35.2 billion in revenues in 2015. Its clients include 80% of the Fortune 500.

Lastly, it has won many honors, including recognition as one of the “100 Best Companies to Work For” by *Fortune *(2016) and as a market share leader by Gartner.

Channels

Deloitte’s main channel are the customer relationships of its partners. The company promotes its offerings through its social media pages, seminars, workshops, briefing series, webcasts, Deloitte Life magazine, sponsorships of sports teams and events such as the Olympics, and participation in forums and conferences.

Customer Relationships

Deloitte’s customer relationship is primarily of a dedicated personal assistance nature. Customers receive one-on-one guidance from its employees. That said, there is also a self-service component.

The company’s website has a section called “Detroit University Press” that includes self-help resources such as articles, reports, periodicals, infographics, and case studies.

Key Activities

Deloitte’s business model entails designing and developing problem-solving services for clients.

Key Partners

Deloitte maintains business alliances with over 45 leading firms through which it jointly develops solutions and services to benefit mutual clients. Specific partners include AT&T, BMC, Cisco, Dell, EMC, Guidewire, Hewlett-Packard Enterprise, IBM, Informatica, Kira, NetSuite, and Salesforce.

The company also operates the Innovation Partnership Program (IPP) in collaboration with Singularity University and the XPRIZE Foundation. Through this initiative it gathers Fortune 500 senior executives to learn from the brightest minds of Silicon Valley (entrepreneurs, technologists, innovators, and business strategists) and encourage them to come up with disruptive solutions. The program is membership-based and invite-only. Specific partners include Wells Fargo, Tata Communications, Dentsu, Genentech, Dow, Barclays, Google, Caterpillar, and Coca-Cola.

Key Resources

Deloitte’s main resources are its human resources, who include consultants, accounting professionals, and other professional services personnel with deep industry expertise.

Cost Structure

Deloitte has a value-driven structure, aiming to provide a premium proposition through significant personal service. Its biggest cost driver is likely cost of services, a variable expense. Other major drivers are in the areas of sales/marketing and research/development, both fixed expenses.

Revenue Streams

Deloitte has one revenue stream, the fees charged to its clients for its selection of services. These fees vary by individual project and type of client.

Written on October 25, 2017