The Russian nanotechnology firm Rusnano (‘Russian Corporation of Nanotechnologies’) has hired Bain & Company to create a new strategy and strategic roadmap. The Moscow office of Bain won the tender in competition with several international strategic advisory firms, including The Boston Consulting Group.
Rusnano is a semi-privatized firm jointly owned by the Russian government that specializes in nanotechnology. Rusnano's task is to create a nano-industry in the country worth €22.4 billion by 2015.
A press statement from Rusnano states that Bain will provide full support for the new mission and strategy. This new strategy will include an analysis of the competitive advantages of Rusnano, an evaluation of the competitors, positioning, scenario’s for the optimal business model and recommendations on investment directions. In addition, Bain & Company will develop a new performance management system for global leadership aimed at achieving the goals of Rusnano’s new strategy.
Bain more expensive than BCG
Rusnano will pay Bain & Company slightly more than €1.1 million for its consultancy services. It is striking that, even though Bain was a lot more expensive than its competitors, it still won. Boston Consulting Group’s proposal was priced at approximately €950.000. Rusnano explains that the key factors in favor of Bain were a better proposal, as well as its experience in supporting strategy development for investment companies. The newspaper also hints at Bain’s good ties with high Russian officials. In a reaction to the suggestion, the global headquarters of Bain & Company in the U.S. did not deny ‘strong professional ties with Russian government agencies’.