SWOT Analysis of KPMG

adam August 10, 2017 Business Services No Comments

This is the detailed SWOT analysis of KPMG. It has been operating in services industry since 1987. It’s headquarter is in Amstelveen, Netherland however, it has been serving worldwide. This article is going to cover the strengths, weaknesses, opportunities and threats of KPMG.

Following is the detailed SWOT analysis of KPMG:

Strengths

• KPMG has a strong extensive geographic reach.

• KPMG is spread over 150 countries with a workforce of 180,000 employees.

• It makes its revenues from a number of industries.

• It is a top-of-line consulting company with expertise in tax, audit, and advisory.

• There are a number of knowledge and analytical based publications being issued by KPMG.

• It has huge employee base which is serving customers worldwide.

• Profits are high approx. 25 billion in 2016 and future prospective of the company also looks good.

• KPMG has been known to be social and sponsor events.

• It is one of the world’s big four auditors.

• It has many awards in the fields of outsourcing, consulting, tax solution etc.

• The services of KPMG are being used by 70% of the Fortune 500 organizations and 18 of the top 50 banks of the world.

• There is a lot of focus on employee training including both in-house and national training.

• It’s considered among the best employer therefore, attracts outstanding talent to join this company.

Weaknesses

• Due to being one of the top consulting firms, its high expertise comes at a high cost.

• It has a limited market share as a result of intense competition from other consulting companies.

• The company offers incompetent promotions and pay rises.

• Highly affected by the legislations made and continuously being modified by the regulating bodies (Tibbs, 2016).

• Many companies do not approach KPMG for its services as a result of its label as a top consulting firm fearing it won’t be accessible or affordable for them.

• Employees are overburdened as a result of frequent busy seasons leading to long hours of work and tight deadlines.

Opportunities

• KPMG has a lot of opportunities for growth in the emerging markets across the globe.

• It can acquire the smaller competitors to further strengthen its position in the market (Suzan & Emily, 2014).

• It focuses a lot on customer satisfaction helping it develop returning customers.

• It is one of the big four. This label can help it grab further opportunities to grow.

• The growth in technology and business uncertainties have increased the need for audit and advisory services.

• The continuous development of regulatory laws requires more and more firms to audit their records forcing them to make use of consultants such as KPMG.

• The recently adopted audit technology called dynamic audit can be used to increase both market share and audit quality.

Threats

• Economic recessions lead to a sudden drop in business.

• Increasing competition from the other firms such as Ernst & Young, Deloitte Consulting, and Accenture means a reduction in the market share of KPMG.

• A number of lawsuits have been filed against KPMG in the past based on material misstatements such as the joint disciplinary scheme of Fannie Mae in 2006 and 2008.

• The recent audit reform legislations by the European union similar to Sarbanes Oxley Act of 2002 ads further independence regulations on auditors and restricts their services.

References

Suzan & Emily, 2014. KPMG Swot Analysis Project. [Online] Available at: https://prezi.com/ye62cc6g4jva/kpmg-swot-analysis-project/ [Accessed 31 July 2017].
Tibbs, S., 2016. SWOT Analysis of KPMG. [Online] Available at: https://sntibbs.wordpress.com/2015/02/04/swot-analysis-of-kpmg/ [Accessed 31 July 2017].

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