CRA(US:CRAI)2021-03-03 16:00Workforce and Expertise - CRA International, Inc. employed 831 consultants as of January 2, 2021, including 137 officers, 471 senior staff, and 223 junior staff, with approximately 80% of senior staff holding advanced degrees[23] - Approximately 80% of senior staff hold advanced degrees, with 41% possessing doctorate degrees, indicating a high level of expertise[46] - The company derives most of its revenues from services provided by employee consultants, emphasizing the importance of their hours worked[52] - Employee consultants participate in structured training programs focused on technical skills and client relationship management, enhancing service delivery capabilities[49] - The company emphasizes rigorous analytics and high-quality work, which attracts top talent from leading universities and industries, ensuring a competitive edge in consulting services[47] Business Model and Revenue Streams - The company has a diversified business model across multiple dimensions, including service offerings, industry coverage, and geographic presence, which reduces dependence on any particular market[25] - Approximately 24% of consolidated revenues were derived from fixed-price contracts in fiscal 2020, 24% in fiscal 2019, and 23% in fiscal 2018, indicating a stable revenue stream from management consulting services[45] - The company maintains a diverse client base, with no single client accounting for more than 5% of revenues in fiscal 2020, 2019, or 2018, ensuring a broad revenue stream[44] - The majority of revenues come from new engagements with existing clients, highlighting the importance of repeat business[56] Consulting Services and Expertise - CRA has established a strong reputation for high-quality consulting services, evidenced by a high level of repeat business from clients[21] - The firm utilizes sophisticated economic and financial analysis to solve complex problems and improve decision-making for clients[20] - The company collaborates closely with law firms on litigation and regulatory proceedings, focusing on high-stakes outcomes such as merger approvals and damages analysis[33] - The company provides expert testimony and litigation support in various disputes, including antitrust, intellectual property, and financial market issues, showcasing its analytical strength[34] - The company assists clients in obtaining regulatory approvals for mergers and acquisitions, simulating effects on prices, and estimating demand elasticities[42] Corporate Culture and Values - CRA's corporate culture emphasizes teamwork and collaboration, attracting consultants and enhancing client relationships[28] - The company emphasizes ethical business practices and adherence to industry standards in its operations[57] - The company has a long-term incentive program (LTIP) that includes cash and equity compensation, designed to reward senior leaders and key revenue generators[51] Market Position and Competition - The company competes in a highly fragmented market for economic and management consulting services, facing competition from both established firms and new entrants[58] - Principal competitive factors include reputation, analytical ability, industry expertise, size, service, and price[58] - The market for economic and management consulting services is highly competitive and fragmented, with few barriers to entry[58] Marketing and Business Development - The company maintains a diverse set of marketing activities, including seminars, publications, and social media, to enhance brand awareness and client relationships[54] - Business development activities include virtual and in-person seminars, conferences, and extensive thought leadership publications[54] - The company relies on referrals from existing clients and direct marketing to attract new clients[56] - Regular communication with existing clients is maintained to keep them informed of market developments[54]