Based On The Scp Paradigm Of The Management Consulting Industry

The management consulting industry is an emerging industry which can bring special economic and social benefits. On the one hand, management consulting itself is developing very quickly in the national economy, as measured by its increasing share of GDP. On the other hand, it is a high value-added industry in the value system and functions to raise the efficiency and output of other industries. The management consulting industry is characterized by low investment, high efficiency, and radiating financial and welfare effects. However, these contributions will only be meaningful to the national economy if the internal developmental rules and the external developmental environment of the management consulting industry are clearly understood.In recent years, along with the rapid development of Chinese economy, the overall scale of the management consulting industry expanded as large foreign consulting companies entered the Chinese market. The pace of expansion is expected to accelerate in the future. However, despite the rapid development of the management consulting industry in China, research relating to the industrial organization of the management consulting industry has been very limited. Analysis and research relating to industry structure, conduct and performance are important foundations to the government's policy and management consulting enterprises'strategy.This paper is based on the industrial organization theory and research method employing the SCP paradigm. Specifically, employing three aspects of the management consulting industry organization (market structure, market conduct and market performance), this paper analyzes the current state of the management consulting industry organization demonstratively; formulates the influential factors and the optimization methods of the management consulting industry; and identifies the existing problems of the management consulting industry.Finally, the last section summarizes the relationship between the market structure, market conduct and market performance of the Chinese management consulting industry, in order to provide certain theoretical basis for the development policy of the management consulting industry.