Professional Documents
Culture Documents
The company was incorporated on 29 December 1945 in Amalner, Maharashtra by Mohamed Premji
as 'Western India Vegetable Products Limited', later abbreviated to 'Wipro'. It was initially set up as a
manufacturer of vegetable and refined oils in Amalner, Maharashtra, India under the trade names of
Kisan, Sunflower, and Camel.[5][6][7]
In 1966, after Mohamed Premji’s death, his son Azim Premji returned home from Stanford
University and took over Wipro as its chairman at the age of 21
Wipro is an IT services industry and this is the oldest company which is dealing with its customers
on high levels. The porter’s model is to specify the competition concerns within and without the
concerning industry and company. It is all about the evaluation of the profitability of the firm and the
strategies which the industry may have for the better and profitable margins in the market. Porter
Model is made for analyzing the Wipro’s reputation and concerns of maintain the level of the
business. It also works for the betterment of the company by getting to know the threats and the
opportunities of Wipro in the market. The Model is:
Wipro has been ranked 1st in the 2010 Asian Sustainability Rating (ASR) of Indian companies[77] and
is a member of the NASDAQ Global Sustainability Index[78] as well as the Dow Jones Sustainability
Index
Competitors Of Wipro
1. Tata consultancy services ( comany)
2. Infosys limited
3. HCL technologies
4. Tech Mahindra
5. Cyient ltd
Building capacities and spending money on research and development. New entrants are less
likely to enter a dynamic industry where the established players such as Wipro Limited keep
defining the standards regularly. It significantly reduces the window of extraordinary profits for
the new firms thus discourage new players in the industry.
Power of Buyers
Buyers are often a demanding lot. They want to buy the best offerings available by
paying the minimum price as possible. This put pressure on Wipro Limited profitability in
the long run. The smaller and more powerful the customer base is of Wipro Limited the
higher the bargaining power of the customers and higher their ability to seek increasing
discounts and offers.
How Wipro Limited can tackle the Bargaining Power of Buyers
By building a large base of customers. This will be helpful in two ways. It will reduce the
bargaining power of the buyers plus it will provide an opportunity to the firm to streamline its
sales and production process.
By rapidly innovating new products. Customers often seek discounts and offerings on
established products so if Wipro Limited keep on coming up with new products then it can limit
the bargaining power of buyers.
New products will also reduce the defection of existing customers of Wipro Limited to its
competitors.
How Wipro Limited can tackle Intense Rivalry among the Existing
Competitors in Information Technology Services industry
By building a sustainable differentiation
By building scale so that it can compete better
Collaborating with competitors to increase the market size rather than just competing for small
market.
Conclusion
The competitors of Wipro Ltd are countering forces of advancing technologies and meeting
customer needs from time to time. Wipro Ltd focuses on establishing customer value that
remains competitive and reliable over time. It can face serious threats from entry of new firms in
the industry regarding the revenue earnings and profitability