The Research On Development Strategy Of Baker Tilly China

2009has been an extraordinary year in the history of the Chinese Certified PublicAccountancy industry. The General Office of the State Council has officially issuedpolicies regarding to the development of the Chinese Certified Public Accountancyindustry, first time ever in the history, closed followed by favorable policies from theministry of finance, China Security Regulations Committee, the Chinese Institute ofCertified Public Committee and other regulatory bodies. Consequently, a series ofconsolidations occurred within the accounting industry, cumulating in12M&A deals,there are16firms with annual revenue of over RMB300m. This has significantlyaltered the landscape of the industry, with a series of dominant players emerging.This paper attempts to analyse the development and implication of the“standardize, collectivise and Internationalize” strategies adopt by Baker Tilly China(BT China hereafter). Utilizing techniques such as PEST analysis, Porter's FiveForces and SWOT analysis, we closely examined competition law theory and the lifecycle of the auditing industry. We have also researched on the political, legal,economic, social, and technical factors of the industry, as well as the potential entrantsof new competitors, substitutes, customers, suppliers and co-operating partners asdefined in Porter's Five Forces.Based on the statistics of the Chinese accounting industry and comparison to asimilar firm within the industry, we conclude that the key factors behind the success ofBT China are the prudent strategies adopted and effectively implemented by the firm,which has driven BT China from a relatively obscure regional firm to the8th largestfirm nationally within10years. This paper demonstrates the importance of definingand implementing the right strategies for domestic China accounting firms facingincreasing competitions and threat on consolidations the industry currently faces.