Page 16 - Steel Tech India eMagazine Volume January 2023

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Comprehending Business Entry Barriers

Mathematically – A Case in Engineering

Consultancy

Dr. Pradeep Kumar Chatterjee, Advisor-Green Management
UN-aligned, Espoo, FINLAND

Abstract Being nucleus in the marketing mix, the engineers are
Engineering consultancy being business of intellect directly associated with client’s project team in rendering
services, needs moderate or small investment. EDVLF GHWDLOHG HQJLQHHULQJ IURQW±HQG HQJLQHHULQJ
The resources and infrastructure required to start design (FEED), contract engineering; procurement;
engineering consultancy is not capital intensive unlike IDEULFDWLRQ FRQVWUXFWLRQ (3)& SURMHFW PDQDJHPHQW
manufacturing business. As such the barriers to consultancy (PMC) services, etc either in advisory role
entry are relatively much lower rendering the industry as owner’s design engineer DQG RU LQ SDUWLFLSDWRU\
DVVDLODEOH WR VWLႇ FRPSHWLWLRQ ZLWK ZDIHU WKLQ PDUJLQ role as owner’s site engineer or as lender’s engineer
2QH FDQ ¿QG LQGHSHQGHQW LQGLYLGXDO IUHH ODQFHUV on single point total responsibility basis (one of the
consultant in left hand side (LHS) of the fulcrum to unique features of engineering consultancy coined as
large corporate houses in right hand side (RHS) for Inseparability and Co-existence of service provider-
various service portfolios. Low entry barriers (cause) service receiver) (Chatterjee & Chatterjee 2019).
LQÀXHQFH QDWXUH UDWH DQG GHJUHH RI FRPSHWLWLRQ They being integral part of the service delivery process,
HႇHFW 7KLV SKHQRPHQRQ RI FDXVH HႇHFW FDQ are the face, heart and hands of the engineering
be understood quantitatively using mathematical- consultancy organization, their technological
GLႇHUHQWLDO HTXDWLRQ ,Q WKH SDSHU DQ KXPEOH knowledge, engineering competence, project execution
attempt has been made using equation analogous expertise, problem solving IQ, pain staking attitude, etc.
to Arrhenius equation in Chemical Kinetics to testify are engineering consultant’s unique selling propositions
the universal hypothesis H0, that when entry barrier (USPs). An engineering consultant’s identity in the
(s) decrease and ease of doing business (EDB) industry is established through the USPs of the human
increases, the number of competitors increases. capital as they (engineers) give birth to idiosyncratic
and avant garde ideas which results in quality service,
SURFHVVHV HႇRUW HFRQRP\ WLPH FRVW HFRQRP\ HWF
In intellect services like, engineering consultancy,
PDQDJHPHQW FRQVXOWDQF\ OHJDO FRQVXOWDQF\ ¿QDQFLDO From the above, it is crystal clear that engineering
consultancy, tax consultancy, etc., business activities consultancy being business of intellect services,
revolve primarily around human capital and meagerly need moderate or small investment and to a great
RQ ¿QDQFLDO FDSLWDO ,Q VXFK LQGXVWULHV WKH UHOHYDQFH extent operate in a highly competitive and challenging
of human capital is un-debatable because of the environment. The barriers to entry are relatively much
indispensable role they play in service delivery process. ORZHU UHQGHULQJ WKH LQGXVWU\ DVVDLODEOH H[SRVHG
Congruously, in engineering consultancy, human YXOQHUDEOH WR VWLႇ QDVW\ FRPSHWLWLRQ ERWK LQ WHUPV RI
capital (engineers of various disciplines working in number, magnitude and intensity with wafer thin margin.
GHVLJQ HQJLQHHULQJ GHSDUWPHQWV SURMHFW GHSDUWPHQW To start an engineering consultancy business, the
construction planning department, contracts UHVRXUFHV DQG LQIUDVWUXFWXUH UHTXLUHG LV QRW ¿QDQFLDOO\
GHSDUWPHQW SURMHFW ¿QDQFH GHSDUWPHQW FRQVWUXFWLRQ capital intensive unlike other manufacturing business.
HUHFWLRQ SURMHFW HQJLQHHUV DW VLWH HWF FRQVWLWXWH 2QH FDQ ¿QG LQGHSHQGHQW LQGLYLGXDO IUHH ODQFHUV
the central force in the organization’s business matrix. consultant in left hand side (LHS) of the engineering

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