Businessmodel of PwC

Customer Segments

PwC has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at firms of all industries and sizes, ranging from large family businesses and NGOs to governments and major multinational corporations.

Value Proposition

PwC offers three primary value propositions: innovation, performance, and brand/status.

The company places a high priority on innovation. It maintains the Center for Technology and Innovation (CTI), a think tank designed to explore emerging technologies and enterprise IT trends for Chief Information Officers and other executives. It publishes white papers and a technology forecast.

The company has demonstrated strong performance through tangible results for clients. High-profile examples of positive outcomes include the following:

• DB AG used PwC’s services to integrate the accounting functions in its various business units, resulting in lower costs, higher quality and efficiency, and stronger coordination between units
• Avios used PwC’s services to combine the frequent flyer programs of its different airlines, resulting in improved tracking of transactions and higher transparency of value
• Haraldsplass Deaconess Hospital used PwC’s services to reduce the“door-to-needle“ time for patients, resulting in a major reduction in the risk of damage by disease The company has established a powerful brand as a result of its success. It is the world’s largest professional services firm, and is also one of the “Big Four“ accounting firms, along with EY, Deloitte, and KPMG. It has over 208,109 employees operating in 157 countries.

It works with over 100,000 businesses and entrepreneurs, and in 2015 provided services to 418 members of the *Fortune *Global 500 and 443 members of the FT Global 500. Lastly, it has won many honors, including recognition as one of *Fortune’s *“100 Best Companies to Work For“ for 12 years (2005 – 2016) and as the most prestigious accounting firm in the world for seven straight years by Vault Accounting 50.

Channels

PwC’s main channel for customer acquisition are the extensive personal networks of its partners. The company promotes its offering through its social media pages and attendance of various summits and conferences.

Customer Relationships

PwC’s customer relationship is primarily of a dedicated personal assistance nature. Customers receive one-on-one assistance from company employees.

That said, there is a self-service component. The company’s website features PwC Open University, a free online library that includes more than 300 executive business courses designed by PwC thought leaders.

Key Activities

PwC’s business model entails designing and producing problem-solving solutions for its customers.

Key Partners

PwC maintains strategic business alliances with select firms in order to better serve the needs of its customers.

The relationships complement its strategy and enable it to provide multi-competency programs. Specific partners are Adobe, CA Technologies, Guidewire, Google for Work, Hewlett-Packard Enterprise, Microsoft, Oracle, PowerPlan, Salesforce, SAP, and Workday.

Key Resources

PwC’s main resources are its human resources, who include employees with extensive experience in tax, advisory, and assurance services. Its CTI employees have significant technology expertise.

Cost Structure

PwC 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 customer support and operations and research and development, both fixed costs.

Revenue Streams

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