Case Study: CapGemini

Market-Based Strategy Drives Turn-Around in Crowded Market



  • 20 year old information technology (IT) personnel staffing firm with rapidly decreasing margins.
  • Business Unit was one of seven international BUs within a $4 billion organization.
  • Originally doing professional staffing at hourly rates and wanted to move to more profitable project-based services.
  • 34 offices using a franchise model no consistent or known brand.


Build a marketing organization from the ground up to accelerate the move to project-based services using marketing as a driver to gain recognition and build a consistent brand.

Business Objective

Gain recognition with Fortune 500 companies with large (IT) organizations that needed large-scale IT projects.


  • Identify key industry segments that were growing quickly and needed sophisticated IT services.
  • Understand what the buyers really cared about and what the company needed to do in order to differentiate itself.
  • Work with the management team to integrate the market-based positioning with the operational and financial strategy for the company.
  • Oversee the implementation of the market-based business strategy that included product marketing and development, large promotion using media and development of a marketing team distributed throughout the US.
  • Aggressive account management focused on selected organizations allowed targeted solutions to be implemented and additional projects to be initiated.

Key Learning and Strategy

  • Industry focused approach was instrumental in understanding how to apply information systems to drive growth.
  • Buyers valued the ability of a company to work within their sophisticated businesses and supporting information systems.
  • Determined the best way to differentiate ourselves was to shift from a franchise-based/local approach to a global organization that could optimize our customer's business processes using IT systems.
  • Focus on operational excellence allowed us to track project management metrics and deliver projects on time, on budget and with satisfied clients. In turn, satisfied clients became the references that legitimized our business strategy.


  • Company grew from negative profits to the most profitable BU within the CapGemini family within six years.
  • Revenues went from $185 million to $700 million; profit margins went from rapidly decreasing to double digit growth in six years.
  • Company brand recognized as one the major international, IT integrators.
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