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COMPANY PROFILE The Boston Consulting Group REFERENCE CODE: 063D98E2-563D-47F5-8C67-3F761ECE5B20 PUBLICATION DATE: 25 May 2011 www.marketline.com COPYRIGHT MARKETLINE.THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.

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COMPANY PROFILE

The Boston ConsultingGroup

REFERENCE CODE: 063D98E2-563D-47F5-8C67-3F761ECE5B20PUBLICATION DATE: 25 May 2011www.marketline.comCOPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.

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TABLE OF CONTENTS

Company Overview..............................................................................................3

Key Facts...............................................................................................................3

Business Description...........................................................................................4

History...................................................................................................................5

Key Employees.....................................................................................................7

Key Employee Biographies..................................................................................8

Major Products and Services............................................................................14

Revenue Analysis...............................................................................................16

SWOT Analysis...................................................................................................17

Top Competitors.................................................................................................23

Company View.....................................................................................................24

Locations and Subsidiaries...............................................................................25

The Boston Consulting Group Page 2© MarketLine

The Boston Consulting GroupTABLE OF CONTENTS

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COMPANY OVERVIEW

The Boston Consulting Group (BCG or “the company”) is a privately held global managementconsulting company and an advisor on business strategy. The company partners with clients in allsectors and regions in identifying opportunities, addressing important challenges, and transformingtheir businesses. BCG is headquartered in Boston, Massachusetts, and employs 4,800 consultants.

The company recorded revenues of $3,050 million during the financial year ended December 2010(FY2010), an increase of 10.9% over 2009. BCG is a private company and has not released itsannual report. Therefore other financial details are not available.

KEY FACTS

The Boston Consulting GroupHead OfficeExchange Place31st FloorBostonMassachusetts 02109USA

1 617 973 1200Phone

1 617 973 1339Fax

http://www.bcg.comWeb Address

3,050.0Revenue / turnover(USD Mn)

DecemberFinancial Year End

4,800Employees

The Boston Consulting Group Page 3© MarketLine

The Boston Consulting GroupCompany Overview

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BUSINESS DESCRIPTION

The Boston Consulting Group (BCG or “the company”) is a global management consulting companyand one of leading advisors on business strategy.The company provides strategic business consultingservices in areas, including corporate development, corporate finance, operations, strategy, marketingand sales, information technology, organization, innovation, turnaround, transformation, post mergerintegration, globalization, sustainability, managing in a slow-growth economy, and growth. BCGoperates with 74 offices in 42 countries across North America, Central and South America, Europe,Africa, Middle East, and Asia Pacific.

The company advises corporations in every global market and industry. BCG conducts researchand analysis across a range of industries, including automotive, biopharmaceuticals, consumerproducts, energy and environment, engineered products and project business, financial institutions,insurance, media and entertainment, medical devices and technology, health care payers andproviders, metals and mining, private equity, process industries, public sector, retail, technology andsoftware, telecommunications, transportation, travel and tourism, and social impact. The companyworks with humanitarian organizations on a range of areas, including poverty and hunger, globalhealth, education, community and economic development, arts and culture, philanthropy, andcorporate social responsibility.

BCG’S operations include The Strategy Institute and the BCG ValueScience Center. The StrategyInstitute conducts research on various contemporary business issues and practices. It hascollaborative arrangements with researchers at universities and institutions. The institute leveragesits network to identify and develop new ways of thinking about strategy and competitive advantage.The BCG ValueScience Center develops and provides valuation techniques for mergers andacquisitions and corporate strategy applications.

The company’s publications consist of articles, reports, and books on various business topics.

BCG’s clients include those ranked among the 500 largest corporations in North America, Asia,Europe, and Australia. The company also advises mid-sized companies, non-profit organizations,government entities, and not-for-profit organizations.

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The Boston Consulting GroupBusiness Description

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HISTORY

The Boston Consulting Group (BCG or “the company”) was established in 1963 by Bruce D Hendersonas the Management and Consulting division of the Boston Safe Deposit and Trust Company. BCGbecame the first Western strategy consulting firm in Japan with the acquisition of TFM Adams in1966.

In 1968, the company created its first separate subsidiary by entering into a joint venture in Londoncalled Attwood-Boston Consultants. The company opened offices in London in the year 1970.

BCG opened its second office in the US in Menlo Park, California in 1974.The company establishedBusiness Data Analysis, its first wholly owned subsidiary, in 1977. BCG completed its stock buyoutfrom The Boston Company in 1979.

In 1990, the company acquired Australian consulting firm Pappas, Carter, Evans & Koop. In thefollowing year, BCG acquired Holt Planning Associates. The company opened offices in India,Norway and Washington DC in 1996. Two years later, BCG opened The Strategy Institute in orderto enrich the firm's strategic thinking by applying insights from a variety of academic disciplines tothe strategic challenges.

BCG formed an alliance with Goldman Sachs in 2000 to create various internet startups such asiFormation, site59.com, and Platinion Germany. In the following year, the company's Strategy Institutecreated the Strategy Gallery, an online web site featuring continuing, interactive exploration ofstrategic thinking. The company sold its Site59 to Expedia in 2002. In the same year, BCG createdthe ValueScience Center, a joint venture that provides corporate finance valuation tools andtechniques for use in strategy consulting.

The company continued its global expansion by opening an office in Houston, Texas; Miami, Florida;Nagoya, Japan; Santiago, Chile; and Taipei, Taiwan in 2003. BCG opened its base of operations inDetroit, Michigan. The company opened its first Gulf offices in Dubai, Abu Dhabi and in New Jerseyin 2006.

During 2007, BCG opened an office in Kiev, Ukraine. In the same year, the company appointedJohn Clarkeson as Chairman Emeritus. Also, the company updated the appearance of allcommunication tools, including its logo in the same year.

MIT Sloan Management Review and BCG formed a multi-year collaboration on sustainability andmanagement, including joint research and an online discussion hub, in 2009. In the same year, thecompany re-elected Hans-Paul Burkner for further three years as the President and Chief ExecutiveOfficer.

In March 2010, BCG launched three offices in Casablanca, Morocco; Canberra, Australia; andIstanbul, Turkey.

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The Boston Consulting GroupHistory

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The company opened two new offices in Tel Aviv, Israel and Perth, Australia, enlarging its globalfootprint to 71 offices in 41 countries in March 2011. BCG also announced plans to open a newoffice in Rio de Janeiro, Brazil later this year.

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The Boston Consulting GroupHistory

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KEY EMPLOYEES

BoardJob TitleName

Executive BoardPresident and Chief Executive OfficerHans-Paul Burkner

Non Executive BoardChairman EmeritusJohn Clarkeson

Non Executive BoardChairmanCarl Stern

Senior ManagementGeneral Counsel and Head, Risk ManagementJeremy Barton

Senior ManagementSenior Partner and Managing DirectorFrans Blom

Senior ManagementGlobal Leader, Organization PracticeAndrew Dyer

Senior ManagementSenior Partner and Managing DirectorMichel Fredeau

Senior ManagementSenior Partner and Managing DirectorDieter Heuskel

Senior ManagementPartner and Managing DirectorRich Hutchinson

Senior ManagementSenior Partner and Managing DirectorMatthew Krentz

Senior ManagementChairman, North and South AmericaRich Lesser

Senior ManagementSenior Partner and Managing DirectorSharon Marcil

Senior ManagementChairman, Europe and Middle EastBjorn Matre

Senior ManagementSenior Partner and Managing DirectorHubertus Meinecke

Senior ManagementSenior Partner and Managing Director, TokyoTakashi Mitachi

Senior ManagementChairman, Global PracticesDavid Rhodes

Senior ManagementChief Financial OfficerDebbie Simpson

Senior ManagementChairman, Asia-PacificJanmejaya Sinha

Senior ManagementGlobal Leader, Corporate Development PracticeDaniel Stelter

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The Boston Consulting GroupKey Employees

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KEY EMPLOYEE BIOGRAPHIES

Hans-Paul Burkner

Board: Executive BoardJob Title: President and Chief Executive OfficerSince: 2003Age: 58

Mr. Burkner has been the President and CEO at BCG since 2003. He joined the company in 1981and was a Member of the teams that opened BCG's Dusseldorf (1982) and Frankfurt (1991) offices.Before becoming BCG’s first CEO from Europe, Mr. Burkner was the Head of the company’s globalfinancial institutions practice. He studied economics, business administration, and Chinese, receivinga Diploma from the University of Bochum, an MA from Yale University, and a DPhil from the Universityof Oxford.

John Clarkeson

Board: Non Executive BoardJob Title: Chairman EmeritusSince: 2007

Mr. Clarkeson has been the Chairman Emeritus at BCG since 2007. He filled a number of key roleson the company's executive leadership team in his four decades career with BCG. Mr. Clarkesonbecame the President at BCG in 1985 and CEO in 1986. He became the Chairman of the Board in1998. From 2004 to 2007, Mr. Clarkeson served as the Co-Chairman with the former President andCEO, Mr. Carl Stern. Outside of his work with BCG, he serves as the Chairman at the NationalBureau of Economic Research.

Carl Stern

Board: Non Executive BoardJob Title: ChairmanSince: 2003

Mr. Stern has been the Chairman at BCG since 2003. He served as the President and CEO at thecompany from 1997 to 2003. Mr. Stern joined BCG in 1974 and began as a Consultant in the SanFrancisco office, transferred to London in 1978, and led the firm's Chicago office from 1981 to 1991.He headed BCG's Americas region from 1991 to 1997.

Jeremy Barton

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Board: Senior ManagementJob Title: General Counsel and Head, Risk Management

Mr. Barton is the General Counsel and Head, Risk Management at BCG. He leads a team of attorneysand risk-management personnel in the US and Europe. Mr. Barton graduated from CambridgeUniversity with an MA in law and, after a three-year break to compete for Great Britain as aninternational athlete, obtained his professional qualifications at Guildhall University Law School. Hewent on to practice internationally as a corporate lawyer in the London and Paris offices at a leadingcity law firm. Before BCG, Mr. Barton worked for 10 years at the global professional servicesorganizations Andersen and Ernst & Young, where he was European and Deputy General Counseland Global General Counsel, respectively.

Frans Blom

Board: Senior ManagementJob Title: Senior Partner and Managing Director

Mr. Blom is the Senior Partner and Managing Director at BCG. He is a Senior Partner in the company’sAmsterdam office. Mr. Blom is also the Global Leader at BCG’s Client Team. He also serves as aMember at the company’s financial institutions and insurance practices. Since joining BCG in 1991,Mr. Blom has worked in many industries and multiple countries. Over that time, he has specializedin working for banks and insurance companies, developing growth strategies and value-managementprograms, as well as numerous profit-improvement programs, reorganization projects, and completetransformations. From 2005 to 2008, Mr. Blom was responsible for BCG's Central European andEastern European offices. Prior to BCG, he worked for Staal Bankiers, a specialized private bankin The Netherlands.

Andrew Dyer

Board: Senior ManagementJob Title: Global Leader, Organization PracticeSince: 2006

Mr. Dyer has been the Global Leader, Organization Practice at BCG since 2006. He is a SeniorPartner in the company’s Sydney office. Mr. Dyer has been with BCG since 1994 and has led theglobal Organization practice since late 2006. He is also a Member of the Asia-Pacific leadershipteam and BCG’s Executive Committee. Mr. Dyer previously led the company’s Australian FinancialServices practice and has played a variety of local office roles. Before joining BCG, he worked forthe Commonwealth Bank of Australia, and for the Australian Government in a Commonwealthagency.

Michel Fredeau

Board: Senior Management

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Job Title: Senior Partner and Managing Director

Mr. Fredeau is the Senior Partner and Managing Director at BCG. He works in the company’s Parisoffice and leads BCG's People Team which guides how the company recruits, retains, and developsits consultants and staff worldwide. As a Member of the company’s Energy practice, Mr. Fredeauhas served as the Global Leader of the gas topic and the coordinator of BCG’s energy and utilitieswork in France and Belgium. Since joining BCG in 1985, he has led numerous strategic,organizational, and business strategy projects for major oil companies and European utilities. Mr.Fredeau has also worked extensively in consumer goods and retail, focusing on the areas of food,household products, department stores, variety stores, and other retailers. Before assuming hiscurrent role, he led the Paris office for seven years.

Dieter Heuskel

Board: Senior ManagementJob Title: Senior Partner and Managing Director

Mr. Heuskel is the Senior Partner and Managing Director at BCG. He is the Chairman at BCGGermany and a Member of the Executive Committee. Mr. Heuskel joined BCG in 1980 in Munichand moved to Düsseldorf two years later. From 1992 to 1997, he headed the company’s Dusseldorfoffice. Mr. Heuskel also led the first Strategy Practice Initiative from 1995 to 1997.

Rich Hutchinson

Board: Senior ManagementJob Title: Partner and Managing Director

Mr. Hutchinson is the Partner and Managing Director at BCG. He joined BCG in 1993 and is a Partnerin the company’s Atlanta office. As Chief of Staff, Mr. Hutchinson supports the Executive Committee,the Operating Committee, and the CEO in developing and executing their agendas. His primaryfocus in his consulting work has been consumer goods. Mr. Hutchinson has served as the topicleader for pricing in North America and an active member of BCG's Client Service Initiative.

Matthew Krentz

Board: Senior ManagementJob Title: Senior Partner and Managing Director

Mr. Krentz is the Senior Partner and Managing Director at BCG. He is the Leader of the company’sGreat Lakes and Canada systems. Mr. Krentz is also a Member of the Consumer and Retail andOrganization practices. Additionally, he serves on the Global Partner People Team and the OfficerCompensation Committee, and he is the Chairman of the Americas Officer Development Committee.Since joining BCG in 1983, Mr. Krentz has worked extensively for clients on a variety of strategy,corporate development, organization, and marketing, sales, and pricing issues including

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corporate/business unit and brand strategy, mergers and acquisitions, post-merger integration,restructuring, customer strategy, go-to-market, and emerging-markets strategy.

Rich Lesser

Board: Senior ManagementJob Title: Chairman, North and South America

Mr. Lesser is the Chairman, North and South America at BCG. He is a core Member of the company’sHealth Care and Consumer practice areas. Mr. Lesser also heads BCG’s relationship with a leadingpharmaceutical company. Prior to joining the company in 1988, he worked as a Process DevelopmentEngineer and Group Leader at Procter & Gamble, where he led several projects aimed at reducingproduct costs and introducing new products. Mr. Lesser has also worked in synthetic fuels R&D atWestinghouse Electric and BP.

Sharon Marcil

Board: Senior ManagementJob Title: Senior Partner and Managing Director

Ms. Marcil is the Senior Partner and Managing Director at BCG. She joined the company in 1993and currently leads BCG’s Consumer practice in the Americas. Ms. Marcil also leads BCG’s Women'sInitiative in the Americas. Prior to joining BCG, she worked for Goldman Sachs in the mergers andacquisitions department.

Bjorn Matre

Board: Senior ManagementJob Title: Chairman, Europe and Middle East

Mr. Matre is the Chairman, Europe and Middle East at BCG. He originally began working for BCGin Germany, and was later part of the team that started the company’s Nordic Practice. In additionto his duties as European regional Chairman, Mr. Matre also serves as a Senior Partner in thecompany’s London office and is a Member of the Executive Committee.

Hubertus Meinecke

Board: Senior ManagementJob Title: Senior Partner and Managing Director

Mr. Meinecke is the Senior Partner and Managing Director at BCG. He joined the company in 1995and is the Head of BCG’s Hamburg office. Mr. Meinecke is also the Leader of the Industrial Goodspractice in the UK and is a Member of BCG's Metals and Mining and Automotive practices.

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David Rhodes

Board: Senior ManagementJob Title: Chairman, Global Practices

Mr. Rhodes is the Chairman, Global Practices at BCG. He is a Senior Partner in the company’sLondon office and former Leader of the global Financial Institutions practice. Since joining BCG in1985, Mr. Rhodes has worked with financial services clients all over the world on projects involvingmajor strategy and organizational change. He is an Associate of the Institute of Chartered Accountantsand previously worked for Arthur Andersen.

Debbie Simpson

Board: Senior ManagementJob Title: Chief Financial Officer

Ms. Simpson is the Chief Financial Officer at BCG. Before assuming her current role, she was thePartner responsible for tax, treasury, and finance. Ms. Simpson has been with the company since2001. Prior to joining BCG, she was the PricewaterhouseCoopers (PwC) lead tax partner servingBCG since 1990. Ms. Simpson worked at PwC for 16 years, joining the firm immediately aftergraduating from MIT Sloan School of Management in 1985. At PwC, she ran the Northeast region'sinternational tax group for several years, and she served on PwC's US Board of Directors in 2000.

Janmejaya Sinha

Board: Senior ManagementJob Title: Chairman, Asia-Pacific

Mr. Sinha is the Chairman, Asia-Pacific at BCG. He also leads the company’s India practice. Mr.Sinha writes regularly for the Indian press and speaks frequently on a variety of subjects in differentindustry forums like Confederation of Indian Industry (CII), Indian Banks Association (IBA), amongothers. He currently serves on CII's banking committee, services council, and is part of IBA's workinggroup to review the Banking Regulation Act. Before becoming a consultant, Mr. Sinha worked for10 years with the Reserve Bank of India across various departments.

Daniel Stelter

Board: Senior ManagementJob Title: Global Leader, Corporate Development Practice

Dr. Stelter is the Global Leader, Corporate Development Practice at BCG. He is a Senior Partner inthe Berlin office. Dr. Stelter joined BCG in 1990 and became global leader of the practice in 2003.

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Prior to joining the company, he studied business administration and holds a doctoral degree fromHochschule St. Gallen.

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The Boston Consulting GroupKey Employee Biographies

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MAJOR PRODUCTS AND SERVICES

The Boston Consulting Group (BCG or “the company”) is a privately held global management consulting company and an advisor on business strategy.The company's key products and services include the following:

Corporate development:

Mergers and acquisitionsDivestituresAlliances and joint ventures

Corporate finance:

Value creation strategyFinancial management, budgeting, reporting

Operations:

Cost efficiency and asset optimizationLeanManufacturingOutsourcing/Business process outsourcingProgram managementService operationsSourcing and procurementSupply chain management

Strategy:

Vision and missionCorporate strategy and portfolio managementBusiness unit strategyStrategic planningFuture of strategy

Marketing and sales

Branding and communicationConsumer insightGo-to-market strategyMarketingSales and channelsPricing

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The Boston Consulting GroupMajor Products and Services

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Information technology:

IT strategyIT transformationIT sourcingIT organizationIT performance

Organization:

Organization designRole of the centerPeople management and human resourcesChange managementLeadershipEngagement and culture

InnovationTurnaroundTransformationPost merger IntegrationGlobalizationSustainabilityManaging in a slow-growth economyGrowth

Publications:

ArticlesReportsBooks

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The Boston Consulting GroupMajor Products and Services

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REVENUE ANALYSIS

The Boston Consulting Group

The company recorded revenues of $3,050 million during the financial year ended December 2010(FY2010), an increase of 10.9% over 2009.

BCG is a privately owned company. It has not released its financial statements. Hence the revenueanalysis is not available.

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The Boston Consulting GroupRevenue Analysis

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SWOT ANALYSIS

The Boston Consulting Group (BCG or “the company”) is a privately held global managementconsulting company and an advisor on business strategy. The company partners with clients in allsectors and regions in identifying opportunities, addressing important challenges, and transformingtheir businesses. BCG’s innovative product portfolio provides a competitive advantage to the companyin differentiating itself over its peers. However, intense competition in the marketplace may negativelyimpact the company’s growth in market share and margins.

WeaknessesStrengths

Lagging technology enabled offerings witha poor presence in technology consulting

Well respected and globally accepted brandin the strategy consulting domain

Lower scale of operations limits itscompetitive ability

Expertise developed across multipleindustry sets strengthens its business reach

Higher reliance on project based,non-recurring revenue streams

Large and small, clients spanned acrossboth private and public sectors adds to itsconsulting capabilitiesAbility to retain and engage talent in anattrition prone sector

ThreatsOpportunities

Intense competition may negatively impactthe growth in market share and margins

Opportunities exists in some of thecompany’s under-tapped geographies

Continued and prolonged weakness inglobal economic outlook could affectbusiness prospects adversely

Positive outlook for non-IT end marketsdrives demand for consulting servicesManagement consulting market potential inemerging and developing markets

Strengths

Well respected and globally accepted brand in the strategy consulting domain

BCG, over the years has cultivated and built up an amazing reputation for itself and a corporatebrand which has become almost synonymous to strategy consulting. In the process, BCG haspioneered some path breaking ideas and concepts in the strategy consulting domain that providedinnovative frameworks and solutions to address the needs and problems of business community.The company’s focus on conceptual, strategic thinking has yielded many concepts that went on tobecome classics of strategy, and resulted into many academic constructs, tools and methodologies.It pioneered the growth share matrix/BCG Matrix model which was one of the famous concepts in

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The Boston Consulting GroupSWOT Analysis

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resource allocation strategy and was the basis for origin of further models. The company alsoformulated many concepts, including the experience curve, time-based competition, sustainablegrowth, and total shareholder value, which many organizations have leveraged to improve theircompetitive positions. Most of BCG’s models are regarded as benchmarks in strategic managementand business consulting areas.

The strong acceptance of BCG as a strategy consulting brand differentiates it from many of its peersand to gain competitive traction.

Expertise developed across multiple industry sets strengthens its business reach

The company has gradually developed broad expertise levels in offering services for various industries,including automotive, biopharmaceuticals, consumer products, energy and environment, engineeredproducts and project business, financial institutions, insurance, media and entertainment, medicaldevices and technology, health care payers and providers, metals and mining, private equity, processindustries, public sector, retail, technology and software, telecommunications, transportation, traveland tourism, and social impact. The company works with humanitarian organizations on a range ofareas, including poverty and hunger, global health, education, community and economic development,arts and culture, philanthropy, and corporate social responsibility.

The expertise developed across multiple sectors, industries and areas enables the company to keepits business sustenance at high levels.

Large and small, clients spanned across both private and public sectors adds to its consultingcapabilities

The company serves large organizations in both private and public sectors. A majority of thecompany’s clients rank among the top 500 largest corporations in North America, Asia, Europe, andAustralia. BCG also advises mid-sized companies, non-profit organizations, and government agencies.Some of the clients of BCG include World Food Programme, Dresdner Bank, Telefonica O2 UK,Fondazione Palazzo Strozzi, Allianz Germany, News International, and Ullens Center forContemporary Art.

Strong customer base not only ensures steady revenues for the company but also adds to its brandimage in a highly competitive market and thereby enabling it to attract high value clients.

Ability to retain and engage talent in an attrition prone sector

The management consulting has remained often the preferred career choice for many of theprofessionals as it offers to work on multiple and diverse assignments. The consulting industrywitness usually higher levels of attrition as firms and companies in consulting space vie to attracttop talent with tempting roles, professional growth and financial rewards.

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The company, despite having its own share of attrition issues has gained market acceptance amongstemployees and employment seekers as a good place to work for. In January 2011, BCG was rankedsecond in Fortune's “100 Best Companies to Work For”, making it one of only two companies to beranked in the top 12 for six consecutive years.

The company’s ability to engage its associates and consultants in a highly people centric spaceadds to its qualitative output, timely assignment completions and high end project deliveries whichresults in higher levels of client satisfaction and retention.

Weaknesses

Lagging technology enabled offerings with a poor presence in technology consulting

BCG, on a relative basis to its competitors lagged in integrating and utilizing technology in its variousofferings and also has a relatively weak technology consulting practice. Technology consulting isone of the high potential areas for consulting companies to take advantage of the growth potentialit offers in long term. In recent years, technology companies, such as Capgemini and Infosys, addedbusiness and strategy consulting capabilities to their portfolio to pursue cross-selling opportunitiesfor consulting services for their existing clients. By contrast, consulting companies, such as Accentureand Deloitte & Touche, developed technology capabilities pursuing growth opportunities. As a result,the various companies, such as Accenture, Capgemini, Booz Allen Hamilton, IBM and Infosys, haveachieved strong presence in technology consulting. By contrast, BCG has not been a significantplayer in the technology consulting area. Also, most of its competitors developed strong researchand analytics platforms to support their various consulting practices by creating large outsourcingcapabilities in strategic locations.

The company's poor presence in high growth practice areas, such as technology adversely impactsits growth prospects and cross-selling opportunities.

Lower scale of operations limits its competitive ability

The company's scale of operations is comparatively lower than its competitors. Many of its competitors,such as McKinsey & Company, Accenture, Deloitte and Booz Allen Hamilton, have substantiallygreater financial and other resources than the company. For instance, McKinsey & Company hasgenerated revenues of about $6,600 million during the financial year ended August 2009, in FY2009,while Booz Allen Hamilton reported $5,000 million during the financial year ended March 2010. Bycontrast, BCG recorded revenues of $3,050 million in FY2010. In addition, BCG employed 4,800consultants as of FY2010, compared to employees of 23,000 people and 23,800 people by McKinsey& Company and Booz Allen Hamilton, respectively. Large scale enables these competitors to leverageon their facilities and resources to achieve operating efficiency.

The company stands to loose out often in bidding for larger projects and assignments due to itslower scale which also impacts its operating efficiency significantly.

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Higher reliance on project based, non-recurring revenue streams

The company's growth depends highly on its ability to achieve continuous projects from its existingand new clients. Further, consulting engagements, which are primarily project-based andnon-recurring, are significant revenue sources. BCG’s ability to win consulting engagements dependson numerous factors, including consistent delivery of services to clients, ability to change its offeringto suit the client's needs, and maintaining capable consulting staff.

The company’s business is susceptible to maintain a consistent win rate in gaining new businessand any volatility on this front affects its financial performance.

Opportunities

Opportunities exists in some of the company’s under-tapped geographies

BCG has been expanding its presence in recent times across various geographies. For instance, inMarch 2010, the company launched three offices in Casablanca, Morocco; Canberra, Australia; andIstanbul, Turkey. The Casablanca, Morocco location is the company's first office on the Africancontinent. The Canberra office increased BCG's presence in Australia to three offices, and allowsit to work directly with the business and government communities in the location.

In addition, in March 2011, the company opened two new offices in Tel Aviv, Israel and Perth,Australia, enlarging its global footprint to 71 offices in 41 countries in March 2011. Tel Aviv is BCG’sfirst office in Israel and its third office in the Middle East, following the 2007 opening of offices in AbuDhabi and Dubai. The addition of Perth expands the company’s network in Australia to four offices.BCG also announced plans to open its second office in Brazil in Rio de Janeiro in 2011.

The company's expansion will enhance its geographic coverage, while providing revenue growthopportunities.

Positive outlook for non-IT end markets drives demand for consulting services

Some of the company's non-IT end markets are expected to grow in the coming years. Marketsincluding the healthcare, oil and gas, and pharmaceutical markets are forecast to show a steadygrowth.

For instance, the US healthcare sector is providing positive growth opportunities for the company.The National Health Expenditures (NHE) in the US is expected to grow in the coming years due tothe implementation of the Patient Protection and Affordable Care Act (Affordable Care Act), as wellas other relevant legislative and regulatory changes during 2010. According to the industry sources,NHE as a share of gross domestic product (GDP) is expected to be 19.6% by 2019, compared to17.6% in 2009. Also, the US government plans to spend more on new federal healthcare for children'shealth coverage, public insurance programs for the poor, health IT and disease research.

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The global oil and gas market is forecast to reach a value of $3.2 trillion in 2014, increasing at acompound annual growth rate of about 8.5% during 2009–14. Further, the pharmaceutical industryis one of the fastest growing industries in the world. According to Datamonitor, the globalpharmaceuticals market grew by 4.3% in 2010 to reach a value of $693 billion. In addition, the globalpharmaceuticals market is forecast to have a value of $917.1 billion in 2015, an increase of 32.3%since 2010.

BCG conducts research and analysis across a range of industries, including biopharmaceuticals,energy and environment, and health care payers and providers, among others. Positive growth insuch end markets will result in the origin of new projects, there by creating the demand for thecompany's consulting services.

Management consulting market potential in emerging and developing markets

The emerging markets are expected to record strong growth in coming years driven by theircontribution to global commerce. Despite the global economic slowdown and recession in developedcountries, the emerging markets continued to maintain growth. In coming years, the emerging marketsare forecasted to increase their contribution to global commerce and consumption. This can beperceived by the growth prospects for emerging markets. For instance, the emerging and developingeconomies' real GDP registered a growth rate of about 7.3% in 2010, compared to a growth of 2.75in 2009. Further, the emerging and developing economies growth is forecast to reach about 6.5%in 2011. The growth is being driven by China, India, and other emerging Asian economies. Indiaand China are forecast to post GDP growth rates of 9.6% and 8.2%, respectively, in 2011, comparedto growth rates of 10.3% and 10.4%, respectively, in 2010.

Positive outlook for emerging and developing markets provide growth opportunities for variousbusinesses. Moreover, in recent years, most of the companies in these markets continue to pursueglobal practices in their operations. BCG being one of the major players in the business consultingmarket is in a position to capitalize on growth opportunities in providing services for companies inemerging and developing markets.

Threats

Intense competition may negatively impact the growth in market share and margins

BCG operates in a highly competitive consultancy business and requires product and solutioninnovation on a regular basis to create and maintain competitive edge.The company faces competitionfrom other large players in the consultancy market such as McKinsey, Accenture, Deloitte Consulting,Booz Allen, and Ernst & Young International. Besides the companies that originated in the strategicconsulting environment such as Bain, firms with core competence in IT solutions such as IBM,Capgemini, Hewlett Packard, and Infosys entered and extended their presence in the consultingindustry, bringing a new breed of innovations and solution design, allowing other smaller IT companies

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to do the same. This trend may put pressure on the margins of mainstream consultancy firms suchas BCG.

Intense competition in the marketplace may negatively impact BCG’s growth in market share andmargins.

Continued and prolonged weakness in global economic outlook could affect business prospectsadversely

The weakness in global economy, especially in developed ones that started in year 2009 as aconsequence of the financial crisis still continues. The financial crisis led to a strong contraction inthe global economic output. According the International Monetary Fund (IMF) world economic outlookApril 2011 update, global economic output declined by 0.5% in 2009, compared to a growth of 3%in 2008. Due to coordinated economic and fiscal policies of global major economic powers, the worldeconomy registered a growth rate of 5% in 2010. Although, the economy is experiencing modestgrowth, several pockets of the global economy are expected to remain in significant troubles leadingto uncertain or weak economic prospects in the coming years. For instance, IMF projects Euro Areaeconomy to grow at 1.6% in 2011 and 1.8% in 2012. This effectively means that the Euro Areaeconomy may not reach 2007 levels in 2011 and could possibly post growth over 2007 in 2012.Weak economic outlook could affect business prospects of the company.

The company derives most of its business in strategy consulting and substantial part from governmentand quasi-government agencies. The government bodies in developed world have deferred theirvarious expenditures to curtail growing fiscal deficit. Similarly, large organizations in these countrieshave planned to go slow on their domestic growth strategies. The company may find it difficult towin new consulting business from these regions.

The Boston Consulting Group Page 22© MarketLine

The Boston Consulting GroupSWOT Analysis

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TOP COMPETITORS

The following companies are the major competitors of The Boston Consulting Group

Booz Allen Hamilton Inc.McKinsey & CompanyHewitt Associates, Inc.Bain & Company IncInternational Business Machines CorporationInfosys Technologies LimitedErnst & Young InternationalHewlett-Packard CompanyAccenture plcDeloitte Consulting LLP

The Boston Consulting Group Page 23© MarketLine

The Boston Consulting GroupTop Competitors

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COMPANY VIEW

BCG is a private company and has not released its annual report. Therefore, its company view isnot available.

The Boston Consulting Group Page 24© MarketLine

The Boston Consulting GroupCompany View

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LOCATIONS AND SUBSIDIARIESHead Office

The Boston Consulting GroupExchange Place31st FloorBostonMassachusetts 02109USAP:1 617 973 1200F:1 617 973 1339http://www.bcg.com

Other Locations and Subsidiaries

Boston Consulting Group – BrazilBoston Consulting Group – ArgentinaAv. Brig. Faria LimaBouchard 547-103064Buenos Aires C1106ABG5th FloorARGSao Paulo SP 01451-000BRA

Boston Consulting Group – MexicoBoston Consulting Group – ChilePaseo de Tamarindos 400 piso 18 AAv. Apoquindo 3500 – 16AColonia Bosques del las LomasPiso - Of. 1601 Las CondesMexico CitySantiagoD.F. C.P. 05120 MexicoCHLMEX

Boston Consulting Group – BelgiumBoston Consulting Group – CanadaKeizerinlaanBrookfield Place13181 Bay StreetBoulevard de l'ImperatriceSuite 2400Brussels 1000TorontoBELOntario M5J 2T3

CAN

Boston Consulting Group – TurkeyBoston Consulting Group – GermanyKanyon OfisAn der Welle 3Buyukdere Cad. No:185 K:13Frankfurt 60322IstanbulDEULevent 34394TUR

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The Boston Consulting GroupLocations and Subsidiaries

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Boston Consulting Group – FranceBoston Consulting Group – United Kingdom24-26 rue Saint-Dominique20 Manchester SquareParis 75007London W1U 3PZFRAGBR

Boston Consulting Group – SwitzerlandBoston Consulting Group – ItalyMunstergasse 2Via Nazionale 54Zurich 8001Rome 00184CHEITA

Boston Consulting Group – IndiaBoston Consulting Group – Japan3rd FloorThe New Otani Garden CourtTower A Building No. 94-1DLF CybercityKioi-choGurgaonChiyoda-kuHaryana 122 002Tokyo 102-0094INDJPN

Boston Consulting Group – Hong KongBoston Consulting Group – Australia34th FloorLevel 52Tower Two101 Collins StreetTimes SquareMelbourneCauseway BayVictoria 3000HKGAUS

Boston Consulting Group – MoroccoBoston Consulting Group – ChinaTwin Center Tour Ouest15/F, East TowerAngle bd Zerktouni / El MassirTwin TowersCasablanca 20100B-12, Jian Guo Men Wai AvenueMARChaoyang District

Beijing 100022CHN

Boston Consulting Group – IsraelBoston Consulting Group – UAE132 Menachem Begin RoadAl Niyadi Building3 Azrieli Center1st Floor Airport RoadTel Aviv 67011Abu DhabiISRARE

The Boston Consulting Group Page 26© MarketLine

The Boston Consulting GroupLocations and Subsidiaries

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MARKETLINE | 119 FARRINGDON ROAD | LONDON, UNITED KINGDOM, EC1R 3DAT: +44 161 238 4040 | F: +44 870 134 4371 | E: [email protected] | W: www.marketline.com