Supplier Power Character +/- for ization the (Current) industry Availability of Knowledgeable Human Resource Threat of forward

integration Can the resource be easily substituted Plenty Buyer Power Characteriz +/- for ation the (Current) industry Large number of players Low Yes Yes High

+ + +
Low (+)
Switching Cost for buyers

+
Medium

Overall
Competitive Rivalry

Overall

Characterization +/- for the (Current) industry

Industry Growth Rate High

Degree of Product Differentiation

Are prices and terms of sales agreement observable

Low
Yes

Overall

High (-)

Threat of Entry Characterization (Current) +/- for the industry

Economies of scale
Importance of brand loyalty Entrants access to raw material(Human Resources) Availability of IPR/Patents Initial investment Government Policies
Overall

Does not exist

Medium High

Neutral -

Low Low Support entrepreneurs

High (-)

Threat of Substitutes
Characterization +/- for the (Current) industry Threat from outside Competitors Price value characteristics of substitute Overall High Similar

+
Medium

Result of the Analysis: Information technology industry have high competition and it will only increase in the future. Entry barriers are very less for this industry and it requires very low investment. The firm will have to innovate to sustain itself in this industry.

Competitive Rivalry Industry Growth Rate Degree of Product Differentiation Are prices and terms of sales agreement observable Overall

Characterization +/- for the (Current) industry High Low Yes High (-)

SWOT Analysis
Strengths
Highly skilled human resource Low wage structure Quality of work Indian time zone

Weaknesses
High dependence on USA Contribution of IT sector to India s GDP is still rather small Employee salaries in IT sector are increasing tremendously. Low wages benefit will soon come to an end

Opportunity
High quality IT education market Increasing number of working age people Upcoming International Players in the market

Threat
Lack of data security systems Threat of competition from emerging market countries IT development concentrated in a few cities only