Cap Gemini - recommended global strategy for 2012 2016 Research Paper

Cap Gemini - recommended global strategy for 2012 2016 - Research Paper Example The success of the organization in the global market is depended on its ability to identify an effective international strategy. Such strategy would allow the firm to increase its competitiveness towards its rivals and secure its position as a major competitor in its industry. In case that the entry in a particular market is attempted, it is necessary that all this market’s characteristics and risks are carefully reviewed in advance, i.e. before developing the firm’s strategy for entering the particular market (Hitt et al. 2008). Cap Gemini is a major competitor in the consulting, outsourcing and IT services industry worldwide. The firm is already member of the international market; however, the stabilization of its performance requires the change of the firm’s existing global strategy under the terms that markets worldwide suffer from strong economic and political/ social turbulences. Such perspective is made clear through the following example: in 2002 the perf ormance of firm was reduced under the influence of the events of September the 11th (Selva 2002); the above fact revealed the lack of inability of the firm’s global strategy to face strong market turbulences. Cap Gemini, like all other international firms, needs to re-evaluate its global strategy in order to avoid the risk of unexpected organizational failures, a phenomenon that could result to severe losses. In order to understand the needs of Cap Gemini in terms of its global strategy it would be necessary to understand the context of this strategy, in its most common form. In accordance with Peng (2008) the global strategy should be described as ‘a strategy around the globe and not as the strategy of a particular multinational enterprise’ (Peng 2008, p.21). A potential international strategy for Cap Gemini for the years 2012-2016, i.e. for a four-years period, is described below. Primarily, reference is made to the market trends, meaning the industry in which the firm operates. Also, the firm’s existing position and potentials in the global market is analyzed using appropriate methods of strategic analysis. 2. Company Overview Cap Gemini provides consulting, outsourcing, IT and general professional services to firms worldwide. The firm is already well established in the global market employing 115,000 people in its units internationally. The firm is established in France but it has developed an extended network of units in most countries, including those of the Asia Pacific region and America. Among the firm’s services, those most developed are: systems integration (42%) and outsourcing (36%), see Figure 1, Appendix. On the other hand, particular emphasis is given on public sector (at a percentage of 27%), rather than on other industrial sectors, such as financial