SWOT ANALYSIS

RIDDHI GANATRA

ROLL No. ² 12 Sy-bms

What is SWOT analysis?
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. y The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection.
y

Infosys:
Infosys is one of the largest businesses in India with a turnover in excess of $4 billion in 2008. The company specializes in Information Technology (IT) and consulting. N.R. Narayana Murthy and six others started the company in 1981, and it is now the largest IT company in India with its headquarters in Bangalore (although it was started in Pune). It employs more than 90,000 IT professionals and was famously rated 'Best Employer in India.' It operates in a number of business sectors from banking to retail, and its services tend to encompass end-to-end IT solutions which includes a whole bundle of added-value solutions from infrastructure to software engineering.

Strengths:
Since the company is based in India its competitive advantage is enhanced. The Indian economy, despite weak economic indicators such as relatively high rates of inflation, has low labor costs. The workforce has relatively high skills levels in Information Technology. Couple these two elementstogether and you have an operational basis that offers low-cost based, highly skilled competitive advantage. Trained Indian personnel often speak very good English and are sensitive to Western culture, underpinned by India's colonial past. Infosys is in a strong financial position. The business turned over more than $4 billion in 2008. This means that it has the capital to expand, and also the basis to leverage potential investors.

Weaknesses:
Infosys on occasion struggles in the US markets, and has particular problems in securing United States Federal Government contracts in North America. Since these contracts are highly profitable and tend to run for long periods of time, Infosys is missing out on lucrative business. Added to this is the fact that its competitors do well in terms of securing the same Federal business (and one should also take into account that many of its competitors are domiciled in the US and there could be political pressure on the US Government to award contracts to domestic organizations). Despite being a huge IT company in relation to its Indian competitors, Infosys is much smaller than its global competitors. As discussed above, Infosys generated $4 billion in 2008, which is relatively low in comparison with large global competitors such as Hewlett-Packard ($91 billion), IBM ($91 billion), EDS ($21 billion) and Accenture ($18 billion).

Opportunities:
At a time of recession in the global economy, it may appear that some companies will reduce take up of services that Infosys offers. However, in tough times clients tend to focus upon cost reduction and outsourcing - with are strategies that Infosys offers. So hard times could be profitable for Infosys. There is a new and emerging market in China as the country undergoes a huge industrial revolution. The strategic alliance between Infosys and Schlumberger gives the IT company access to lucrative business in the gas and oil industries.

Threats:
India is not the only country that is undergoing rapid industrial expansion. Competitors may come from countries such as China or Korea where there are large pools of low-cost labor, and developing educational infrastructures such as universities and technology colleges. Customers may switch to other offshore service companies in other countries such as China or Korea. Other global players have realised that India has the benefit of low-cost, highly-skilled labor that often speaks English and is culturally sensitive to Western practices. As with all global IT players, Infosys has to compete for skilled labor and this may have the effect of driving up wage levels, and making it more difficult to recruit and retain staff.

Vision and mission statements of
infosys:
Infosys' Vision is to be a globally respected corporation that provides best-ofbreed business solutions, leveraging technology, delivered by best-in-class people. Infosys Technologies (China) Company Ltd. will be the best-in-class provider of business solutions to Global 2000 companies and large North Asian corporations by leveraging the technology and talent base of China. Infosys' Mission Statement is to achieve their objectives in an environment of fairness, honesty, and courtesy towards their clients, employees, vendors and society at large We strive to be a source of pride to our employees and a partner of choice for our clients. Empowering Providers with Mission Critical information at the Point of Decision through the delivery of integrated healthcare solutions based on the latest Microsoft technologies.

Aims and objectives of infosys:
Infosys technologies ltd. defines ,designs and delivers IT-enabled business solutions which aims at providing strategic differentiation and operational security to clients.With Infosys, clients are assured of world class processes and the power to stretch their IT budget by leveraging the global delivery model that Infosys pioneered.

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