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CHAPTER-1

INDUSTRY PROFILE

A History of Information Technology and Systems

Four basic periods was characterized by a principal technology used to solve the
input, processing, output and communication problems of the time were

1. Premechanical,
2. Mechanical,
3. Electromechanical, and
4. Electronic

1. The Premechanical Age: 3000 B.C. - 1450 A.D.

This is the first period were writing and alphabets—communication existed where
first humans communicated only through speaking and picture drawings. Later in 3000 B.C.,
the Sumerians in Mesopotamia (what is today southern Iraq) devised cuniform. Around 2000
B.C., Phoenicians created symbols .The Greeks later adopted the Phoenician alphabet and
added vowels; the Romans gave the letters Latin names to create the alphabet we use today.
Paper and Pens--input technologies came into existence. Sumerians' input technology was a
stylus that could scratch marks in wet clay. About 2600 B.C., the Egyptians write on the
papyrus plant around 100 A.D., the Chinese made paper from rags, on which modern-day
papermaking is based. Books and Libraries: Permanent Storage Devices also came into force.
Religious leaders in Mesopotamia kept the earliest "books" .The Egyptians kept scrolls
Around 600 B.C., the Greeks began to fold sheets of papyrus vertically into leaves and bind
them together. The First Numbering Systems was also started to be used Egyptian system
was the numbers 1-9 as vertical lines, the number 10 as a U or circle, the number 100 as a
coiled rope, and the number 1,000 as a lotus blossom. The first numbering systems similar to
those in use today were invented between 100 and 200 A.D. by Hindus in India who created
a nine-digit numbering system. Around 875 A.D., the concept of zero was developed.
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2. The Mechanical Age: 1450 - 1840

The First Information Explosion was by Johann Gutenberg who invented the movable
metal-type printing process in 1450. This by development of book indexes and the widespread
use of page numbers. Then the first general purpose "computers" actually people who held the
job title "computer: one who works with numbers."

3. The Electromechanical Age: 1840 - 1940.

The discovery of ways to harness electricity was the key advance made during this
period. Knowledge and information could now be converted into electrical impulses. In the
beginning of telecommunication around late 18th century Voltaic battery was found later in early
1800s telegram was used. Again in the the year 1835 Samuel Morse developed Morse Code in
which dots & dashes were used. In the year 1876 Alexander Graham Bell invented Telephone &
Radio which is still in existence. Followed by the discovery that electrical waves travel through
space and can produce an effect far from the point at which they originated. These two events led
to the invention of the radio by Guglielmo Marconi in 1894. Then Electromechanical computing
was invented by Herman Hollerith and IBM.

4. The Electronic Age: 1940 - Present.

The first tries was in early 1940s which led to findings of Electronic vacuum tubes. Then
Eckert and Mauchly found first high speed General-Purpose Computer using Vacuum Tubes
called Electronic Numerical Integrator and Computer (ENIAC) in 1946. Then many machines
came into existence later personal computer was invented later even super computers have been
used, now laptops & palm tops are widely used.

Size of Information Technology industry

The size of India's IT industry has grown significantly over the years. The size of this
sunshine industry of India grew from 150 million US Dollars to 50 billion US Dollars between
1990-1991 and 2006-2007. The growth of the IT industry has been very high in the last few
years. The size of the Information Technology industry of India was 5.7 billion US Dollars in
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1999-2000. After the turn of the century the industry experienced exponential growth to reach
the 50 billion mark by 2006-2007.

The size of the IT industry grew consistently during the period - 1995-2000

1995-1996 - 1224 million US Dollars

1996-1997 - 1755 million US Dollars
1997-1998 - 2670 million US Dollars
1998-1999 - 3900 million US Dollars
1999- 2000 - 5700 million US Dollars
2000-2001 - 8750 million US Dollars

The top players in Information Technology sector

1. TCS
2. Infosys
3. Wipro
4. HP
5. IBM
6. Satyam
7. HCL
8. Patni
9. Polaris
10. Cisco
11. KPIT Cummins
12. Kanbay
13. Microsoft
14. Dell
15. Larsen and Toubro
16. Compare Infobase
17. Accenture
18. i-Flex Solutions
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19. Cognizant
20. Sapient
21. Mphasis

Past sales and profit trends

Average Annual Sales - 163.9504crores

Average PBT - 0.123025crores

Average PAT - 0.107223

Average Quick ratio - 2.92295858

Average Debt Equity Ratio - 0.343136095

Average Current Ratios - 19.00729885

Capacity utilization of IT sector

The ability of real business cycle models to generate reasonable aggregate fluctuations
depends on the time series properties of technology shocks measured by the change of total
factor productivity. Three specifications of a non-parametric productivity analysis which correct
to different degrees for variations of capacity utilization are compared in this article using data
for three- and four-digit US manufacturing industries during the years 1958-1996. The results
show that correcting for utilization generally leads to substantially smaller technology shocks
that are less strongly correlated with growth of output and hours. Moreover, the probability of
technological regress is considerably lower after the correction. The capacity utilization was at
82.4 percent in May 2008, now stands at 70.4 percent.
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Government Initiatives

 The government set up the National Taskforce on Information Technology and Software
Development with the objective of framing a long term National IT Policy for the
country.
 Enactment of the Information Technology Act, which provides a legal framework to
facilitate electronic commerce and electronic transactions.
 The government-led National e-Governance Programme, has played an important role in
increasing internet penetration in rural India.

Government attitude to the information sector

Due to changes in information technology it has the potential for impacting the way in
which individuals are coming forward to participate in politics, such as future online voting and
registration, and obtain information from government. But still because there is no proper access
to technology, the Internet may only increase turnout rates or information among those who are
already being using to vote or become engaged, broadening the gulf between those groups that
do and do not participate. Being consistent with cross-national accounts of the digital divide
(Norris 2001), our data on willingness to use IT for political purposes reveals a democratic
divide - individuals with higher education and income are more supportive of digital democracy,
and are more likely to participate in politics online. Our research suggests the Internet may
increase the participation gap based on education and income, while reducing the disparities in
participation based on age. Overall support for different forms of political participation varies
from a low of 48% for online voting, to a high of 78% for searching for government information
online. Education emerged as the most important factors in the democratic division. Support for
online voting and online registration were 19 and 22 percentage points higher among individuals
with a college degree compared to those with only a high school diploma, holding other factors
constant. This information reveals existing disparities in civic participation, which are largely
associated with educational differences. This suggests that in order to close the democratic divide
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in cyberspace, as well as traditional politics, education will be crucial as well as access to

technology.

LABOUR CONDITIONS

Table No. 1.1: Annual percent change in IT industry employment

Year Employment opportunities

1991 0.25
1992 0.75
1993 5.15
1994 5.20
1995 12.5
1996 13
1997 14
1998 14
1999 15
2000 12
2001 2.5
2002 -11
2003 -6
2004 0.5
2005 2
Source: CUED analysis of Current Population Survey data
Chart No.1.1: Annual percentage change in IT industry employment

Source: CUED analysis of Current Population Survey data

Table No. 1.2: Change in IT employment levels

Year Employment levels

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Mar-01 2120000
Nov-01 1920000
Mar-02 1899500
Mar-03 1775000
Mar-04 1775000
Nov-04 1800000
Mar-05 1800000
Nov-05 1850000
Feb-06 1850000
Source: CUED analysis of Current Population Survey data
Chart No. 1.2: Change in IT employment levels

Source: CUED analysis of Current Population Survey data

Table No. 1.3: Annual change in IT industry employment

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Source: CUED analysis of Current Population Survey data

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Table No. 1.4: National IT industry Unemployment rate

Year Unemployment rate

1998 3.0%
1999 1.9%
2000 2.1%
2001 3.5%
2002 8.0%
2003 7.4%
2004 6.0%
2005 4.0%
Source: CUED analysis of Current Population Survey data
Chart No. 1.3: National IT industry unemployment rate

Source: CUED analysis of Current Population Survey data

IT INDUSTRY LABOR MARKETS AFTER THE 2001 RECESSION

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November 2005 marked the beginning of the fifth year of recovery for the U.S. economy.
But this has been no ordinary recovery. Employment growth has been reduced in earlier
recoveries and nonfarm employment has reduced GDP growth considerably. Historically, GDP
growth after a recession has been accompanied by growth in total employment. Robert Pollin
(2004) has shown that in the nine previous recoveries since 1949, GDP grew at an average
annual rate of 4.3 percent in the first nine quarters following the trough of the recession. During
these recoveries, employment increased at an average annual rate of 1.8 percent. In contrast, in
the nine quarters following the trough of the 2001 recession, when GDP grew at an annual rate of
3.4 percent, employment growth was actually negative (-0.1 percent). Although GDP growth
since the end of the 2001 recession has been weaker than in previous cycles, what sets this
recovery apart is that the downturn in employment has been particularly severe and protracted.
The divergence between the steadily growing economic sector (GDP, productivity, and capital
investment) and the sluggish labor market has been especially pronounced in the IT industry,
where several factors have contributed to declining employment in this industry which already
has been hard hit by economic restructuring like most major sectors of the U.S. economy, the
technology sector endured heavy job losses as the U.S. economy slipped into recession in 2001.
Employment conditions in IT labor markets further deteriorated as technology companies
aggressively pursued global sourcing strategies, business moves that lead to the offshoring of a
wide range of IT functions. Since the mid-1990s, a growing array of processes and services
formerly conducted in the U.S., including code writing, software design, data processing, claims
processing, and customer service, have been outsourced to providers in low-wage countries. U.S.
imports of business, professional, and technical services associated with offshore outsourcing
rised from $21.2 billion in 1997 to approximately $37.5 billion in 2002, an increase of 77
percent. The most widely cited estimate of the scale of white-collar offshore outsourcing is a
Forrester (2002) projection that “over the next 15 years, 3.3 million U.S. services industry jobs
and $136 billion in wages will move offshore to countries such as India, Russia, China, and the
Philippines.” Though it has proven to be notoriously difficult to quantify, the jobs impact of off-
shoring is considerable.
It is inconceivable that investment outflows on the order estimated by Forrester and other
industry analysts would not lead to domestic job losses, further slowing the recovery of IT
industry labor markets in the United States. This has significantly undermined the employment
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prospects of technology workers. The recent improvements in IT industry labor markets that
have been observed can be accounted for by renewed spending by U.S. firms on technology
projects. As organizations implement projects that were put on hold during the economic
slowdown, technology spending within the public and private sectors has increased. Gartner
forecasts that in 2006, U.S. businesses will increase their spending on IT by 5.5%, while
Forrester estimates that IT spending by U.S. businesses will increase by 7% (Gartner, 2005;
Forrester, 2006). A portion of the increase in IT spending is devoted to hiring additional IT
professionals, leading to a demand-side “pull effect” on the IT labor market. Employers are
investing in in-house applications development and integration, fuelling demand for
technologists with appropriate business and domain skill sets. This has led to an employment
rebound, particularly in Seattle, San Francisco, and Washington, DC. The IT industry, which saw
sustained employment gains throughout the 1990s, saw its fortunes reverse with the onset of the
2001 recession and the jobless recovery that followed in its wake. Since late 2005, however,
there are signs of a weak recovery in the IT industry as small gains in employment have been
registered. But underlying weaknesses in IT labor markets remain. Cautious hiring by employers
and the rapid rise of offshore outsourcing likely mean that hiring by technology companies will
remain volatile for the foreseeable future.

Competitive conditions

The analysis can provide insight into both online and offline competitive environments.
In the Five Forces Model, Porter explains that in any industry there are five forces that influence
what happens within the industry:

1. Existing companies (Rivalry among firms)

2. Potential new companies (Threat of new entrants)
3. Substitutes for products offered (Threat of substitutes)
4. The suppliers (Bargaining power of suppliers) and
5. The customers (Bargaining power of buyers)

These five forces combine to make up the business environment. By studying the
structure of and dynamics between these forces, you can discover opportunities for improving
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upon marketing strategies. Porter designed his basic model to be applied to an entire industry.
The same analytical method, however, could also be used to study a narrower universe, such as
online presence within an industry. When developing Website marketing strategies, for example,
identification of the "forces” can be as followes:

Competitors: Those sites that offer the same product, service, or information as the companies
site.

Avoid price competition, differentiation of product, buy out competition, reduce industry
over-capacity, focus on different segments, communication with competitors are used to reduce
the competitive rivalry between existing firms.

Potential new entrants: In this fast growing technological world many companies are coming
up with website hosting services site. Off-line competitors as well as new companies entering the
industry via a Website.

Increase minimum efficient scales of Operations, create a marketing / brand image

(loyalty as a barrier), patents, protection of intellectual property, alliances with linked products /
services, tie up with suppliers, tie up with distributors can be used to reduce threat of new
entrants

Customers: Visitors and potential visitors to Website and competitors’ sites.

Partnering, supply chain management, increase loyalty, increase incentives and value
added, move purchase decision away from price, cut put powerful intermediaries (go directly to
customer) are used to avoid bargaining power of customers.

Suppliers: Those companies that supply with the products (or parts if you are a manufacturer)
and services offered on the site. Other suppliers are the Web hosting, software, and other vendors
that supply Web-enabling technology, 3D logo designers, web enabled service providers in low
cost as well as with in less time limit
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Partnering, supply chain management, supply chain training, increase dependency, build
knowledge of supplier costs and methods, take over a supplier are used to avoid bargaining
power of suppliers.

Substitutes: Other means and sources for the same products, services, or information as Website
provides many companies are giving 5GB space free for creating personal websites.
Legal actions
Increase switching costs, alliances, customer surveys to learn about their preferences, enter
substitute market and influence from within, accentuate differences (real or perceived) to reduce
threat of substitutes.

7S Model for Information Technology sector

In the Information Technology sector the competition between the companies is
increasing, the 7’s model of the D’ Aveni helps to come out from the completion through earning
the stakeholders loyalty and at the same time by gaining competitive advantage over the
competitors.
a) Satisfying Stakeholders: In IT sector the Stakeholders role is very important role in the
survival of business, in the present era it all depends on how the business satisfies its
stake holders. Understanding the customer’s requirements and the returns which they are
expecting.

b) Strategic Soothsaying: Visualizing or forecasting the future trends of the environments

like global, political and economically framing the business to overcome the future
meltdowns and to protect the portfolios from these factors.

c) Positioning for speed: In IT sector the various schemes which the company makes should
implement it in market rapidly because it provides them competitive advantages. The rate
of accuracy should be framed first. But the quality of the portfolio should be taken into
consideration and should be matched with the phase of marketing process.
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d) Positioning for Surprise: In the field of IT the companies which are engaged in this area
should be able to position their packages or products in the competitive manner in the
staffing market. As the competition is high the players of these industries should provide
surprise output to the customers to keep them intact with the company.

e) Changing the rules of competition: It’s all competition which defines the strategies which
the players of that particular business area adopt. In this area of business the ability of the
player could be judged by analysing their ability in shifting the rules of competition in the
market. The strategies which they prepare the methods they adopt and the time of
launching their schemes into the market to benefit the clients by providing the software or
websites of uniqueness.

f) Signaling strategic intent: The objective, the future intention of the company should be
well defined and should be kept in the concern. Their strategic objectives should be
conveyed to the clients and even to the IT market so that to create awareness among the
customers about the upcoming technological changes globally.

g) Developing simultaneous and sequential strategic thrusts: It all depends on creating

demand in the market and creating an action oriented desire among the clients and
influencing them simultaneously by supplying qualitative offers at the right time without
causing any delay in the process and providing services for the customers.

Success Factors

 Acquiring and managing key resources – people and technology

 Building effective teamwork
 Assuring strategic alignment by taking the systems view and creating shared models of
success
 Building a learning environment and a process orientation
 Empowering everyone to make a difference
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 Making sure everyone has easy access to the information they need
 Embracing change and diversity
 Rewarding people fairly for their contributions to the whole
 Sustaining focus on what’s important – serving clients and achieving key results

Six features of networked markets

Extending geographic reach

Since communications technologies have madedistance almost inconsequential, some
traditional physical limits on a market or acommunity disappear. In addition, since the marginal
costs for information goods areso low, it makes sense to expand the size of the market as widely
as possible, since itcosts relatively little to make these goods available over a wider area.
Similarly, geographically dispersed communities can link up to tap the potential of being alarger,
and therefore more desirable market. (Of course, once a physical object has to be delivered, the
costs of distance reassert themselves.)

Time doesn’t matter but speed does

Global electronic networks change theirparticipants’ experience of time by creating
unbounded expectations of availability and immediacy. A market or merchant can operate
without reference to the local time for either the seller or buyer. Conversely, since distance no
longer slows communication, participants in networked markets expect fairly immediate
information about events regardless of distance. Failure to meet these expectations can disqualify
a participant from the market, regardless of the quality of the service offered.

Increasing rate and scale of feedback

In part because networks allow markets to grow physically (and thus include more
participants), to expand across time, and to decrease the time between signal and response, they
create the conditions for more and faster feedback.

Network effects
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One key characteristic of any network is that its value to any participant increases with
the number of people on it. As a result, people trying to choose between networks often opt for
what they perceive to be the larger one because the value to each user grows with the number of
others who share the same network.

Tipping
Related to the presence of network effects is the prospect of “tipping”:competition
begins vigorously, but enters a spiral where the product seen as more successful at attracting
more users attracts still more users, which in turn signals subsequent customers to side with the
emerging winner, which only strengthens the effect.

Concentration
The very efficiency of networked markets can result in marketplaces that tend to become
more concentrated rather than more competitive. Network effects encourage consumers to side
with the biggest provider, thereby reinforcing that position and spreading that perception. Once a
market tips, smaller players find it very difficult to compete at all, as the feedback loops reward
success by generating further success. Moreover, firms that use ICTs more intensively and
extensively gain much greater benefits from the trends described here. Their costs fall more
dramatically, and their efficiencies rise more significantly. As a response, some organizations
may choose to develop a finer niche, although each new niche is likely to become concentrated
as well.

Financial support for Information Technology

The availability of financial resources is one of the strongest predictors of innovation. For
organizational innovation, especially for adopting advanced IT, financial support is indispensable
for procuring and developing adequate levels of hardware and software, and training end-users as
needed. Therefore, we can expect that a large variation in IT innovation among city governments
can be explained by the amount of budget available to adopting new IT. However, as the size of
total budget differs from government to government, the relative proportion of the IT budget in
the budget structure could be considered as the criteria to judge the level of financial support.
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Industry Share prices relative to industry earnings

P/E ratios – increased from 19.81(1995) to 26.49(2008) hence the P/E ratio has increased
it shows continuous increase in the profit and there is tremendous growth in the company.
Dividend Yield - 1.144909 past performances for the industry until the year 2008. There
is constant growth of dividend in the industry for the year.

Road Ahead

The Indian information technology sector continues to be one of the sunshine sectors of
the Indian economy showing rapid growth and promise.

According to a report prepared by McKinsey for NASSCOM, the exports component of

the Indian industry is expected to reach US$ 175 billion in revenue by 2020. The domestic
component will contribute US$ 50 billion in revenue by 2020. Together, the export and domestic
markets are likely to bring in US$ 225 billion in revenue, as new opportunities emerge in areas
such as public sector and healthcare, and as geographies including BRIC and Japan opt for
greater outsourcing.
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COMPANY PROFILE

The company provides end to end web based services to their customers to run their
business successfully. This is the company which provide brand identity and internet identity to
business organizations as well as individuals, the company also provide Internet engineering
which is based out of Mangalore. The company also has their technical office at Kasaragod in
Kerala. The company marketing office is in Bangalore as well as Mangalore. They are specialist
in providing Business identity to Online by designing, coding, maintaining, securing the
websites; they also build customized web applications, ERP & Project Management tools. They
develop website for the companies as per their requirements and customization at a competitive
price.

The Unique Selling Proposition of the company is their designs. The company has the
best designers with them whose designs have won many awards and applauds internationally.
They have expertise in creating the brand identity (logo designing, business cards and letter head
designing etc.) and internet identity (web designing, coding hosting and maintenance of
customer’s website). Here are some website addresses of some business organizations which is
done by the company and also some of the designs crafted by our designers.

Name Foradian Technologies PVT Ltd

Founded 2009
Headquarters Mangalore
Key people Unni Krishnan, (CEO)
Industry Internet Engineering Company
Products Brand Identity
Internet Identity
Software Development
Revenue 10 Lakhs (July 2009)
Employees 25
Website www.Foradian.com
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MISSION
 Internet identity
 Delight by making them succeed
 Web = Foradian
 Web 3.0 leaders
 Power of internet to normal people
 One world
 Net neutrality
 Safe and secure internet

VISION
To be the most successful and profitable company in the world by 2030

OBJECTIVES
 Achieve a total revenue of Rs.10 crore in the first year of operations
 To be the best internet engineering company in India by 2011
 To develop and launch our first killer application by 2012
 To be one of the top5 internet engineering companies in the world by 2013
 To generate a total revenue of Rs.10k crore in 2015

FORADIAN PHILOSOPHIES

One world: Company as well as company employees should be ready to work any where in
India.
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Be water: Employees must adjust for the company like how water takes the shape of the
container and not its shape.
Freedom: Employees have got freedom for their work in the company.
Chart No. 1.4 Organization Structure of Foradian Technologies Pvt Ltd

BOARD OF THE DIRECTORS

President Abdul Salam

Chief Executive Officer Unni Krishnan
Chief Technical Officer Aravind G S
Chief Operations Officer Vishwajith
Managing Director Abdul Hisham
Chief Marketing Officer-India Arun Raveendran
Chief Marketing Officer-Asia Pacific Praveen Prabhu

The company is divided into department wise of different department like Finance,
Marketing, HR, Research and Development this departmental wise division helps in smooth
process of work process. The company has different departments which has been allocated
different works some of the departments are Research and Development department in-charge of
technical works under which chief designers, internet designers and designers work, finance
department is in-charge of maintaining accounts and ledgers, marketing department is in-charge
of marketing the products and services and maintaining relationship with the customers under
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which sales managers work, HR department in-charge of recruitment, salary payment, training
and performance appraisal.
DEPARTMENTAL STUDY
Research And Development Department Details

Research and Development generally refers to the task of designing the website, logo and
also packaging design, department also works for providing much functionality to the website
like payment gateway, product gallery, online booking, video downloading from some
companies website. It also works in encoding, hosting and maintaining the website of the
customers. Now it is also developing new software and some research is being conducted in
developing some of the other software according to the customers’ preferences which is
customized. The head or chief persons for Research and development department are Aravind G
S and Vishwajith.

MARKETING DEPARTMENT DETAILS

Marketing generally refers as the task of creating, promoting and delivering goods and
services to consumers and business. Marketing managers seeks to influence the level of timing
and composition of demand to meet the organisation’s objectives. Marketing people are involved
in 10types of entities: goods, services, experiences, events, persons, places, properties,
organization, information and ideas. The marketing concept rests on four pillars: target market,
customer needs, integrated marketing and profitability.
“Marketing is defined as a societal process by which individuals and groups obtain what
they need and want through creating, offering and freely exchanging products and services of
value with others.
The basic four P’s of marketing are PRODUCT, PRICE, PLACE and PROMOTION.

MARKETINGSCENARIO
The last few years have seen an increased attention for creation of private or official
website from many business organizations, educational institutions. Now a days most of the
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companies are interested in having two or three websites for one company considering for
customers inside India and outside India.
Website acts as one of the means of communicating customers, not only customers but
also other business organization. Website not only helps to get new customers but it helps for
Business to Business and Customer to Business transaction. Any customer or supplier for any
information searchs for company details in internet or collects information from official website.
Website is answer to all these situations. It appoints professionally qualified and experienced
staffs that manages each of these functions on a fulltime basis. Now, Website is new developing
market in present generation.

MARKET SEGMENTATION
Market segmentation is an effort to increase a company’s precision marketing. A market
segment consists of large identifiable group within a market with similar wants, purchasing
power, buying attitudes or buying habits. As Foradian Technologies is a service sector industry
they introduce different schemes for different people. Each individual is different in nature and
each differ in their preferences hence even charges is also charged in customer to customer basis.
The segmentation of market is on the basis of industry to industry. Foradian Technologies as it
subdivides the market into distinct and homogeneous subgroups of customers it doesn’t
concentrate one segment but stretches its hands to all segments like retail companies,
biotechnological labs, charitable institutions, educational institutions etc.

TARGET MARKET
Foradian Technologies as it is a new company it doesn’t have particular target market but
it provides services to all types of customers inside India and also outside India. The only target
customers are people who can afford for the designing of the website. As the company is not
only in website designing but is also into coding, encoding, maintaining, hosting and also into
software development it can concentrate into all sectors.

POSITIONING STRATEGY
“Positioning is the act of designing the company’s offering and image to occupy a
distinctive place in the target market’s mind.”
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Positioning starts with a product. A piece of merchandise, a service, a company, an

institution, or even a person. But positioning is not what we do to a product. Positioning is what
we do the mind of the prospect. That is, our position the product in the mind of prospect. A
company’s differentiating and positioning strategy must change as the product, market, and
competitors change over time. Once the company has developed a clear positioning strategy, it
must communicate at the positioning effectively. There should be no under positioning, over
positioning, confused positioning or doubtful positioning.
Foradian technologies, have positioning strategy of “Continuing a Tradition of Trust”. It
is accurate positioning strategy because it signifies a trust with its clients and also it has
positioned itself as providing services for low cost with much functionality.
Here there are two Chief Marketing Officers(CMO) dedicated towards customer service
and satisfaction and give them guidance which helps them to get right website with unique
design with many functionalities, which suit their needs. In this way it continues to maintain a
trust with its clients. This company has a very dedicative and talented marketing team which
many software companies do not have.

DIRECT MARKETING
Direct marketing means that selling their own products without any use of
intermediateries. Usually, this takes the form of the sales officer and employees who approach
the investor and accept their contribution directly. However in India, independent agents may
really be created as a direct marketing channel in a sense that they do not form a well knit
independent and organized a single entity and act more like fund employees. The head or chief
persons for Marketing department are Arun Raveendran, Praveen Prabhu

HUMAN RESOURCE DEPARTMENT DETAILS

HUMAN RESOURCE MANAGEMENT
“Human Resource Management function that helps managers recruits select, train and
develop members for an organization. Obviously, HRM is concerned with the people’s
dimension in organizations
In all business concerns, there is one common element. i.e. HUMAN RESOURCE. Work
force of an Organization is one of the most important inputs of components. It is said that people
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are our single most important assets. Because of the unique importance of HUMAN
RESOURCE and its complexity due to ever changing psychology, behavior and attitudes of men
and women at work, personnel function, i.e., manpower management function is becoming
increasingly specialized. The personnel function or system can be broadly defined as the
management of people at work- management of managers and management of workers.
Personnel function is particularly interested in personnel relationship and interaction of
employees-human relations.
In a sense, management is personnel administration. Management is the development of
people, and not mere direction of material resources. Human capital is the greatest asset of a
business enterprise. The essential ingredient of management is the leadership and direction of
people. Each manager of people has to be his own personnel man. Personnel management is not
something you really turn over to personnel department staff.

MANPOWER PLANNING
Human Resource Planning is the process by which an organization ensures that it has the
right number and kind of people, at the right place, at the right time, capable of effectively and
efficiently competing those tasks that will help the organization achieve its overall objectives.
Human Resource Planning translates the organization’s objectives and plans into the number of
workers meet those objectives. Without a clear-cut planning, estimation of an organization’s
human resource need is reduced to mere guesswork

Foradian Technologies follows the following process:

The first step is forecasting the need of man power in terms of divisions, department or
functions. Along with the estimate of the number of the people required in different departments
it is also decided that at which level they will be needed.
After estimating the man power requirement, next step is to have a look at the current human
resource. The current human resource is assessed so as to know whether the requirement can be
filled by the existing personnel or not.

MENTORING
 25

Foradian Technologies understands the constant need of guidance and direction to

employees. Every superior acts as a mentor for all employees reporting into him. The mentor
acts like a coach provides constructive feedback which helps the subordinates to sheer their
career in the right direction.

EXCLUSIVE EMPLOYMENT
The employee position is that of full time employed with Foradian Technologies. The
company strictly prohibits the employees from seeking employment of any nature with any other
entity. The employees have to take prior approval from the superior and the Human Resource
department before engaging in activities like working as free lancers.

TRAINING
Continuous training and upgrading technical, behavioural and managerial skills is a way
of life in Foradian Technologies. Training needs analysis is done on a regular basis and
systematic methodologies are ensured that skills and capabilities of all agents are constantly
upgraded to enable them to perform in the challenging work. There is special training session at
regular time period in Head Office in Mangalore to all financial consultant and agents about new
scheme and to improve their effectiveness. Each and every senior officer in the office trains
regarding the new schemes or new work.

PERFORMANCE APPRAISAL
Objective of Performance appraisal if for Developmental uses for agents and financial
consultants, for wages, transfer, promotion, for documentation and for organizational purpose
like Human Resource Planning, Job analysis and for training and development.
For Performance Appraisal modern method is used like MBO (Management by Objectives) and
360” appraisal.

FINANCE DEPARTMENT DETAILS

IMPORTANCE OF FINANCE
Finance is regarded as the life blood of a business enterprise. This is because in the
modern money oriented economy. Finance is the one of the basic foundation of all kind of
 26

electronic activity. It is the master key which provides access to the entire source for being
employed in manufacturing and merchandizing activities. It has rightly been said the business
needs money to make more money. However it is also true that money begets more money, only
when it is properly managed. Hence, efficient management of every business enterprise is
closely linked with efficient management of its finance.

MEANING OF BUSINESS FINANCE

In general finance may be defined as the provision of money at the time it is needed.
However, it has a special meaning. Finance activity may be defined as the procurement of funds
and their effective utilization without any wastage. Some of the authoritative definitions are as
follows:
“Business finance is that business activity which is concerned with the acquisition and
conservation of capital funds in meeting financial needs and overall objectives of far business
enterprise.”
“Business finance can broadly be defined as the activity concerned with planning rising,
controlling and administrating of the funds used in the business.”
 27

CHAPTER-2

PRODUCT AND SERVICES MARKET

Foradian Technologies Pvt Ltd which is called as internet engineering company is basically a
service industry. The services provided from the company are as follows:
 Web design: Web designing means designing the website for the company for their
requirements. The uniqueness of the company is their designs, the company gives unique
designs for each and every customer where the designing part starts from the scratch.
 Web development (coding & scripting): Web development means the customer has
already got an official website but editing, coding of all the web pages is done by the
company
 Web hosting: Web hosting means after web designing the company purchases a separate
domain and registers in the name of the customer’s preferences.
 Web maintenance: Web maintenance is that the company takes care of editing the
information according to the customer’s requirement and the charges for this web
maintenance is charged on hourly basis.
 Internet security (consultancy): Internet security means website will be developed and
maintained and that website will be secured as it will be 128bit encrypted, as website will
be secured for hacking, creating spams and hacking payment gateway and photo gallery.
 Internet marketing (SEO): Search engine optimization (SEO) is the process of improving
the volume or quality of traffic to a web site from search engines via "natural" ("organic"
or "algorithmic") search results. Typically, the earlier a site appears in the search results
list, the more visitors it will receive from the search engine. SEO may target different
kinds of search, including image search, local search, and industry-specific vertical
search engines. This gives a web site web presence.
 28

 Email ids: Email ids are that the company provides separate email ids for the customers
as per their preference. In this if the customer wants email ids less than 50 it will be under
the domain name of Google and if they want more than 50 a separate domain name will
be given. E.g. rajesh@xxx.com,ramesh@xxx.com

Opportunities:
 The main opportunity for the company is that the company provides the services in a
package of 2-3 services.
 The company has got good designers.
 The company provides unique designs for the clients.
 The company provides all these services for a cheap cost compared to other companies.
 The company has well experienced and talented marketing team.
 The company is on the way of developing new killer software’s.
Threat:
 There are many competitors in this industry.
 IT development concentrated in a few cities only.
 Lack of data security systems.
 The company cannot enter rural market.
 The company cannot provide brand identity for all business organizations as it will not be
cost effective for them.

Table No. 2.1: Competitors for the services provided by the company

Website Designing Digital Arts, WebPort, Magnon Solutions Pvt.

Ltd., JEHOVASOFT, Overtake software
technologies, FuGenX Technologies Pvt. Ltd.,
Datanumeric Internetworks, DesignLabz.com
India, Wonesty Web Services,Quick2Host,
OWD, KRISH INDIA DESIGN, Keltron
Kerala, Kaveri Communications Pvt Ltd
Logo Designing Logodesignguru, HFB Advertising, Interbrand
 29

Singapore, My Corporate Logo, LogoPie,

GyanArt, LogoYes, ArtisLogo, Logo Blog
Package Designing Zoli Design, Design Force, Tijuana Design,
Wilmer Fong & Associates, Wencel/Hess
Design, Sonic Images Design, Soulo Design,
Mark Oliver, Shoe Horn, Mark Oliver, Shoe
Horn
Brand Identity Branding, Pixel Productions Inc, 4am group,
AVID, Cranberry Communications, Stress
Design
Software Development Bilz Information & Technology Services Pvt.
Ltd., Double Spring, Acme Insurance Services
Pvt Ltd , Aditi Technologies Pvt Ltd , Akamai
Technologies India Pvt Ltd , Antares Systems
Ltd , Artech Infosystems Pvt Ltd , e-Infochips
Ltd. , Hinduja TMT Ltd , Seva Systems Pvt
Ltd
 30

Chapter-3

RESEARCH METHODOLOGY

Introduction

Internet marketing, also referred to as i-marketing, web marketing, online marketing, or

eMarketing, is the marketing of products or services over the Internet.

The Internet has brought many unique benefits to marketing, one of which being lower
costs and greater capabilities for the distribution of information and media to a global audience.
The interactive nature of Internet marketing, both in terms of providing instant response and
eliciting responses, is a unique quality of the medium. Internet marketing is sometimes
considered to have a broader scope because it not only refers to digital media such as the
Internet, e-mail, and wireless media; however, Internet marketing also includes management of
digital customer data and electronic customer relationship management (ECRM) systems.
Internet marketing ties together creative and technical aspects of the Internet, including design,
development, advertising, and sale.

Website marketing is not a new kind of marketing it has been emerged from many years
but its importance and value is now being shown by some companies. Website marketing means
marketing the company or its products and services by creating an attractive website with the
help of website designing companies or free lancers. As business organizations market their
products and services in many ways one of the way is website marketing, now a day’s website
marketing is used as one of the tool by many business organizations to market their products and
services. Hence evaluation of usage of website marketing has become a marketing tool by the
business organizations
 31

Scope of the study

 This study helps to know how effective website marketing for the business organizations
as a marketing tool is.
 This study helps the company to know what the preferences are given by the customers in
website marketing.
 This study helps the company to know what individuals are expecting from them.
 This study helps for many individuals to know what the benefits are for them when they
do website marketing.
 This study helps the company to know what is being expected by the business
organizations.
 This study helps the company to work with the same pace in future.

Objectives of the study

Primary objective:
The primary objective is to determine the extent of preference of website marketing as a
marketing tool by business organizations and the reasons for preferring them or not preferring
them.
Secondary objectives:
 To determine which categories of business prefer corporate website for their
organizations.
 To determine what are the reasons, for incorporating their official website.
 To determine what are the preferences given by business organizations for incorporating
their official website.
 To determine how effective website is marketing compared to other marketing tool.
 32

 To determine who are the competitors for the company in website marketing.
 To determine their reasons for making investments on incorporating official website.
 To find out the amount they have invested in launching their website or are planning to
invest.
 To determine as to who influenced them to launch their organizations website.
 To find out what they actually expect from website designing companies and take in
recommendations from them which would help the company to look into them and
satisfy and create more customers..
 To ultimately evaluate and find out if a city like Bangalore has the potential to increase
the business in website designing in future

METHODOLOGY
Data Collection:
Primary data: A survey would be conducted on “Usage of website marketing as a marketing
tool by business organizations” to determine how website marketing is playing its role as useful
marketing tool. Questionnaires would be distributed among the target respondents to conduct the
survey. For clarifications and suggestions, the respondents would be dealt with personally. In this
way, information would be collected from the customers to attain the objectives of the survey/
research.
Secondary data: Secondary data would be internet to get the information about the current
market for website marketing, performance of website marketing till date

SAMPLING DESIGN:
A sample design is a definite plan for obtaining a sample from a given population. Sample is an
respondent from whom the data are collected. The following are the steps involved in it;

Sampling unit:
A decision has to be taken concerning a sampling unit before selecting sample. Sampling unit
may be a geographical area such as a state, district, village etc.
 33

The sampling unit of the survey will be Bangalore city. The areas visited will depend upon the
location of business, business enterprises, professionals, trading concerns etc who will be
referred to for collecting the information.

Sample frame:
Sample frame is the total area under study from which we derive the sample unit. It represents
the total population under study.
The sample frame for the study is the entire Bangalore city.

Sampling size:
Sample size is the subset of the population under study. Sample size should be a proper
representative of the whole population. As the size of the sample increases, it becomes more and
more representative of parent population and shows its characteristics but in actual practice, large
samples are more expensive. Thus a balance has to be maintained between the sample size,
degree of accuracy desired and financial resources available.
All the important areas of Bangalore will be touched to cover the prominent business enterprises,
professionals, other concerns etc. The sampling size selected for the survey will range between40
to 50.Therefore approximately 50 respondents will be dealt with for the purpose of the survey.

Sampling technique:
Sample technique is a method of selecting target respondents for the study.
The different types of sampling methods used in the study are
 Convenience sampling:-Where the samples are selected at the convenience of the
investigator rather than by any prespecified or known probabilities of being selected.
 Purposive sampling:-Where information is obtained from the specific targets-respondents
who will be able to provide the desired information.
The sampling technique used in the study will be a mixture of Convenience and Purposive
sampling.
 34

Statistical tools for data analysis:

The various statistical tools for analysis are:
 Mean: It is one of the measures of central tendency and is obtained by the sum of data
values divided by total no of observation.
 Graphs: Graphs are the schematic representatives of the figures. It is most preferably
used method as the variations in the statistical data can also be understood by a common
man.

Limitations of the Study:

Every study has its own limitations. No study is perfect similarly there certain limitations of
our study like:
 Time frame
 Sampling errors
 Cost factor
 Narrow scope
 35

DATA ANALYSIS AND INTERPRETATIONS

Analysis of the sample characteristics of the respondents

Total number of respondents (N) = 50

Table No. 3.1: Table showing gender of respondents

Basic Options Frequency Percentage

Characteristics
Gender Male 40 80
Female 10 20
Total 50 100.0

Chart No. 3.1: Chart showing gender of respondents

 36

From maximum number of 50 respondents who were interviewed for the study, about
80% (40) are male and rest 20% are female.

Table No. 3.2: Table showing age of the respondents

Age Options Frequency Percentage

20-30 25 50
30-40 15 30
40-50 10 20
Total 50 100

Chart No. 3.2: Chart showing age of the respondents

 37

From maximum number of 50 respondents who were interviewed for study, about 50%
(25) of them are between age group of 20-30 and the rest between 30-40 and 40-50.

Table No. 3.3: Table showing marketing techniques adopted by respondents for their
business organizations

Marketing Techniques Options Frequency Percentage

Advertising 30 60
Tele marketing 5 10
Website marketing 5 10
Viral marketing 10 20
Total 50 100

Chart No. 3.3: Chart showing marketing techniques adopted by respondents for their
business organizations
 38

From maximum number of 50 respondents who were interviewed for the study, about
60% (30) of the respondents adopted advertising as marketing technique for their business
organizations and rest adopted tele marketing, website marketing and viral marketing .

Table No. 3.4: Table showing usefulness of website marketing for respondents business.

Usefulness of Options Frequency Percentage

Yes 25 50
website marketing
No 20 40
Don’t no 5 10
Total 50 100

Chart No. 3.4: Chart showing usefulness of website marketing for respondents business.
 39

From maximum number of 50 respondents who were interviewed for the study, about
50% (25) of them said website marketing is useful for their business.

Table No. 3.5: Table showing opinion of website marketing of respondents.

Opinion on website Options Frequency Percentage

Very good 20 40
marketing
Good 15 30
Satisfactory 5 10
No use 10 20
Total 50 100

Chart No. 3.5: Chart showing opinion of website marketing of respondents

 40

From maximum number of 50 respondents who were interviewed for study, about 40%
(20) of their opinion for website marketing was very good

Table No. 3.6: Table showing advantages of website marketing known to respondents.

Advantages of Options Frequency Percentage

Advertisements 10 20
website marketing
Friends & Relatives 28 56
Business Partners 7 14
Others(specify) 5 10
Total 50 100

Chart No. 3.6: Chart showing advantages of website marketing known to respondents
 41

From maximum number of 50 respondents who were interviewed for study 56% (28) of
them came to know advantages of website marketing from friends and relatives and rest from
advertisements, business partners and other medium.

Table No. 3.7: Table showing expectations of respondents on website designing company to
design their website.

Expectations by respondents Options Frequency

Low cost 50
Unique design 40
Payment gateway 10
Attractive features 15
115

Chart No. 3.7: Chart showing expectations of respondents on website designing company to
design their website
 42

From maximum number of 50 respondents who were interviewed more than 40% of them
expect low cost and unique design from website designing companies to design their website.

Table No. 3.8: Table showing respondents preferences for adopting website marketing.

Respondent’s preference Options Frequency Percentage

Advertising 22 44
Creating customers 10 20
Marketing new
15 30
products
Informative 3 6
Total 50 100

Chart No. 3.8: Chart showing respondents preferences for adopting website marketing.
 43

From maximum number of 50 respondents who were interviewed for study, about 44%
(22) of them prefer website marketing for advertisements and rest prefer for marketing their
products, creating new customers and information purpose.

Table No. 3.9: Table showing willingness of respondents for designing their website by
website designing company.

Affordability to spend Options Frequency Percentage

5000-10000 29 58
10000-15000 8 16
15000-25000 7 14
Above 25000 6 12
Total 50 100

Chart No. 3.9: Chart showing willingness of respondents for designing their website by
website designing company
 44

From maximum number of 50 respondents who were interviewed for study, 58% (29) of
them are willing to pay 5000-10000 for designing their website by website designing companies
and rest are willing to pay more 10000-15000, 15000-25000 and above 25000 .

CHAPTER-4
FINDINGS

 Advertising is high among marketing techniques adopted by respondents for their

business organizations.
 Maximum number of respondents incorporating the website was for advertising and
creating new customers
 Maximum number of respondents agreed that website marketing is an effective
marketing tool.
 The amount respondents have invested in launching their website or are planning to
invest was 5000-10000.
 45

 Maximum number of respondents expect good & unique design with many
functionalities for low or reasonable cost.
 Maximum number of respondents said that they are influenced by friends, relatives &
advertisements to plan or incorporate organizations website.
 Maximum number of respondents said yes for usefulness of website marketing for their
business.
 Maximum number of respondents said very good when their opinion was asked on
website marketing.
 Maximum number of respondents said website marketing is an effective marketing tool.
 Maximum numbers of respondents are ready to invest 5000-10000 for designing their
website.
 A city like Bangalore has the potential to increase the business in website designing in
future if the service is provided in low and reasonable cost.

Chapter-5
SUGGESTIONS & CONCLUSION

Suggestions

 Company should concentrate more giving maximum security which is very much
required for the website owners
 As company is involved into 3D logo designing so it can also diversify itself into printing
the letter heads, visiting cards, CD’s.
 The company can setup separate department for maintenance of website as the company
may get many orders even for it.
 46

 As the company has got effective software engineers it can try to create effective
software’s which will be killer product for the industry.
 The company can print brochures for advertising its services and works done by them as
it will impress new customers.
 The company can send one sample while sending quote to the customers.

Conclusion

From the above study, analysis and observations we can come to the conclusion that
there are many players in the website marketing sector, it has got good market to grow and
compete in this technological world. There are many business organizations who do not have
their official website, some of them are not aware of this new marketing tool and some of
them are in half mind to invest for designing their website and it would be easy to attract
them as most of the business organizations expect low priced and unique designed website
which Foradian Technologies Pvt Ltd is already doing. It is also good time to grow for the
company in this sector.

ANNEXURE-1

Questionnaire
“Hello, my name is Guru Darshan. I’m management trainee in Foradian Technologies Pvt ltd. I
am taking opinion on ‘Evaluation of usage of Website marketing as a marketing tool by the
business organizations’. I would like to ask you some questions with reference to this subject”
1,a) Name: ……………………………………………………………………………
b) Age: 20-30………. 30-40……….
40-50………. 50-60………
c) Sex: Male………………. Female………………….
d) Qualification:…………………………………………….
e) Occupation:………………………………………………
 47

f) Company name & address:

……………………………………………………………………………………………………
……………………………………………………………………………………………………
……………………………………………………………………………………………………
…………………………………………………………..
g) Income: …………………………………………
2) What are the marketing techniques you adopt for your business organization?
Advertising
Tele marketing
Website marketing
Viral marketing

3) Is website marketing useful to your business according to your knowledge?

Yes…….. No……….. Don’t know…………

4) Does your company or your organization has an official website?

Yes…………. No……………..
5) If yes when was your official website launched?

……………………………………………………………………………………………………
……………………………………
6) Have you ever come across the Foradian Technologies Pvt Ltd?
Yes………. No…………
7) What is your opinion on website marketing?
Very Good
Good
Satisfactory
No Use
8) Do you think website marketing is an effective marketing tool for all business organizations?
Yes……
 48

No…………
Don’t know………
9) If yes, how you came to know about advantages of website marketing?
Advertisements
Friends & Relatives
Business Partners
Others(please specify)

10) What do you expect from website designing company if you want to design your website by
them?
Low cost
Unique Design
Payment gateway
Attractive features
11) What rating you want to give for website marketing in this competitive world considering its
effectiveness.
1 2 3 4 5
Low Medium High

12) Do you think website marketing can attract the customers for your business?
Yes…….. No…….. Can’t say……..

13) In these below choose any one purpose for adopting website marketing for your Business
Advertisement
Creating customers
For marketing your products
Informative
14) If you want website designing company to design your website how much are you ready to
spent?
5000-10000…… 10000-15000……
15000-25000…… Above 25000…….
 49

Thank you for your cooperation, valuable time and information.

BIBLIOGRAPHY

• http://www.naukrihub.com/india/information-technology/top-players/
• http://www.frost.com/prod/servlet/cpo/40931889
• http://www.tcf.ua.edu/AZ/ITHistoryOutline.htm
• http://www.websitemarketingplan.com/marketing_management/marketing
_strategy.htm
• http://www.themanager.org/pdf/p5f.pdf
 50

• http://www.economywatch.com/india-it-industry/size.html
• http://www.informaworld.com/smpp/content~content=a792254420~db=all~jumpt
ype=rss

Last visit to the above mentioned sites on 19/06/2009