Case study on Wipros Business Level strategy of M & A

Advantages of:
Establish a competitive advantage along these dimensions: Reach the firms access and connection to customers Richness the depth and detail of the two-way flow of information between the firm and customers Affiliation facilitating useful interactions with customers

Focused Business Level strategy

Focus may allow the firm to direct resources to certain value chain activities to build competitive advantage Concentrating on a particular geographic market Finding their niche Develop unique capabilities to serve needs of target buyer segment

Why to Focus?
Big enough to be profitable and offers good growth potential Not crucial to success of industry leaders

Costly or difficult for multi-segment competitors to meet specialized needs of niche members Focuser has or manages resources and capabilities to effectively serve an attractive niche Focuser can defend against challengers via superior ability to serve niche members

Risks of Focus strategy

Competitors find effective ways to match a focusers capabilities in serving niche Niche buyers preferences shift towards product attributes desired by majority of buyers - niche becomes part of overall market Segment becomes so attractive it becomes crowded with rivals, causing segment profits to be splintered.

Cooperation Strategies
Companies sometimes use strategic alliances or collaborative partnerships to complement their own strategic initiatives and strengthen their competitiveness. Allies can be useful in helping a company establish a stronger presence in global markets and helping it win the race for global market leadership Competitive advantage emerges when a company acquires valuable capabilities via alliances it could not obtain on its own, providing an edge over rivals New market developments or acquire/improve market access To fill gaps in technical or manufacturing expertise To acquire new competencies

Advantages
Gain inside knowledge about unfamiliar markets and cultures

Access valuable skills and competencies concentrated in particular geographic locations

Master new technologies and build new expertise faster than would be possible internally Open up expanded opportunities in target industry by combining firms capabilities with resources of partners

Five Forces Model of Competition

Substitute Products

Suppliers

Rivalry

Buyers

New Entrants

Wipro - IONA
Headquartered in Ireland and Waltham. Also having subsidiaries in UK, Germany, France and Italy IONA, a world leader having a strong history in high performance integration solutions with complex and heterogeneous computing environments. Wipro will share IONAs Artix Enterprise Service Bus Both companies will engage in joint sales and marketing activities Both companies now intend to vertical market entry and expansion such as telecommunications, health care

Wipro - Compuware
Headquartered in Germany and foreign subsidiaries in Austria, Poland, Switzerland, Netherland, Portugal and Czech Republic Having overseas markets of US, Australia, Japan, and Brazil Operates in the area of specialized IT and Lifestyle solutions This alliance will help Wipro to improve the reliability and availability of enterprise applications

Wipro - ILOG
Headquartered in France and US and has subsidiaries in Australia, China, UK, Germany, Japan, and Singapore Provides market leading product of BRMS as well as innovative optimization and visualization software component Both companies are sharing their experiences and technical know how They are working on integrating ILOG products into Wipros service offering