From the dawn of the information revolution, multinational companies such as the Big Six, have increasingly adopted the concept of virtuality in order to overcome geographic and other boundaries that previously limited entry into some markets. By virtualising, these companies are now able to cooperate spontaneously with partner companies in order to exploit temporary market opportunities. This report will look at how Coopers and Lybrand (CL) virtualised its operations and in doing so acquired a competitive advantage over its competitors. Moreover, the strengths, weaknesses and the future of PC in terms of virtualising operations will be explored.
In a market where the demand for one stop accounting and auditing services is growing rapidly and legal restraints create boundaries for multinationals to penetrate foreign markets, multinationals such as Coopers and Lybrand have to virtualise operations to gain a competitive advantage. In order to cater to those clients, whose activities were being conducted on an international scale, CL had to look for partners throughout the world who could provide these clients with accounting, consulting and auditing serv
Lastly, due to the temporary nature of virtual networks fixed costs are lowered as CL business activities are decentralised and hence staff costs are reduced. This is also the case as the lack of contracts makes for faster response time and greater flexibility for national partners. With the event of the implementation of a successful, widely adopted system (or database) the costs of information and communication sharing will be greatly reduced. This goal will drive the Big Six to retain or improve their relative position in the market place.
ices. This is due to the fact that in many countries the law states that these services are to be provided by domestic companies and proves to be one of the driving factors for the move towards virtualisation.
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