Eden McCallum: A Network-Based Consulting Firm (A)

Case Solution

Heidi K. Gardner, Robert G. Eccles
Harvard Business School ()

Eden McCallum pioneered the network (“virtual”) consulting model in the UK. Hiring independent project consultants keeps overheads so low that Eden McCallum’s fees are a fraction of the rates charged by large companies. Its flexible and profitable model has attracted world-class corporate clients and has resulted in consistent double-digit annual growth for the first nine years. However, in January 2009, the global economic crisis drastically changed the competitive landscape and the founders have to decide whether to pursue their high growth strategy or make savings that include cost reductions or withdraw their first international expansion, which began the previous year. . . In this case, she examines how elements of a company’s innovative model are mutually reinforcing and what happens when the environment changes.

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