Business model of Oliver Wyman

Customer Segments

Oliver Wyman has a mass market business model, with no significant differentiation between customers. The company targets its offerings at firms of all industries and sizes desiring management, economic, and brand consulting services.

Value Proposition

Oliver Wyman offers three primary value propositions: customization, accessibility, and brand/status.

The company offers customization through its specialization. It has experts on staff with deep knowledge in specific industries, enabling it to provide a higher, tailored level of expertise for clients.

The company creates accessibility by offering a wide range of options. It has acquired numerous firms over time, including Corven, an energy consultancy, Bonfire Communications, an employee engagement and internal communications agency, and OC&C Strategy Consultants, a consultancy specializing in information services, business media, and education sectors. These additions have enabled it to add several new capabilities to its portfolio.

The company has established a strong brand as a result of its success. It bills itself as one of the fastest-growing strategy consultancies, with over 4,000 professionals operating in over 50 offices in 26 countries. It has several clients in the Global 1000. Many of its employee alumni are prominent individuals, including Richard Lui, a news anchor for MSNBC; J. Randolph Babbitt, a former administrator with the Federal Aviation Administration; and Jeffrey Zients, President Obama’s Chief Performance Officer. Lastly, it has won many honors, including recognition as “One of the Best Workplaces for Millennials“ by Fortune magazine, one of the“Top Places to Work“ by Financial Times, and placement on the Corporate Equality Index.

Channels

Oliver Wyman’s main channel is its website. The company promotes its offering through its social media pages and events such as roundtables, forums, summits, and symposiums.

Customer Relationships

Oliver Wyman’s customer relationship is primarily of a dedicated personal assistance nature. It has its teams work closely with clients to solve their problems, and offers phone and e-mail support. That said, there is a self-service component. The company’s website features a wide variety of self-help resources, including articles, research reports, white papers, and books.

Key Activities

Oliver Wyman’s business model entails designing and providing problem-solving services for clients.

Key Partners

Oliver Wyman maintains strategic partnerships with NERA Economic Consulting, an economic consultancy, and Lippincott, a brand strategy and design consultancy.

Key Resources

Oliver Wyman’s main resources are its staff of industry experts. The company also has Oliver Wyman Labs, a program consisting of 100 team members who utilize data analytics and apply innovative approaches to technology to produce actionable insights for clients.

Lastly, as part of the Marsh & McLennan Companies, it has access to employees at its sister companies Marsh, Mercer, and Guy Carpenter, who maintain expertise in brand and identity management, microeconomics, human capital strategies, and insurance.

Cost Structure

Oliver Wyman 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 administration, both fixed costs.

Revenue Streams

Oliver Wyman 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.