STRATEGIC MANAGEMENT

MINI PROJECT
ON

SUBMITTED BY
DRISYA K
ROLL NO 27
S4 MBA
 INFOSYS
“If you never made a mistake, you never tried something new"- Narayana Murthy

INTRODUCTION
Infosys Technologies Ltd. started in 1981 by seven people with an investment of US$ 250. Today,
they are a global leader in the "next generation" of IT and consulting with revenues of over US$ 14 billion
as of 2021. Infosys defines designs and delivers technology‐enabled business solutions that help Global
2000 companies win in a Flat World. Infosys also provides a complete range of services by leveraging
their domain and business expertise and strategic alliances with leading technology providers. Their
offerings span business and technology consulting, application services, systems integration, product
engineering, custom software development, maintenance, re‐engineering, independent testing and
validation services, IT infrastructure services and business process outsourcing.

Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force in the
industry leading to the rise of offshore outsourcing. The GDM is based on the principle of taking work to
the location where the best talent is available, where it makes the best economic sense, with the least
amount of acceptable risk. Infosys has a global footprint with over 50 offices and development centers in
India, China, Australia, the Czech Republic, Poland, the UK, Canada and Japan. Infosys and its
subsidiaries have 259619 employees as of 2021. Infosys builds strategic long‐term client relationships.
Over 97% of their revenues come from their existing customers.

STRATEGIC INTENT
Vision
"to be a globally respected corporation that provides best‐of‐breed business solutions,
leveraging technology, delivered by best‐in‐class people."

Vision statement is its strategic plan for the future – what and where Infosys Company wants to be in the
future. The vision statement identifies the goals of Infosys to facilitate its strategic, managerial, as well as
general decision making processes.

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Components of the vision statement
- Concise
The vision statement of Infosys is brief and to the point. This means that the company has not used
long dialects and dialogues to delivers its opinion ad stance to the public and relevant stakeholders.

- Encompassing description
The vision statement is complete in its description and information of what the company desires, and
how it plans to achieve its long term goals strategically. It is a comprehensive statement identifying the
company’s core strengths, which would enable it to achieve its futuristic goals.

Mission
"to achieve our objectives in an environment of fairness, honesty, and courtesy towards our
clients, employees, vendors and society at large."
The mission statement details the values and strategic aims of Infosys and identifies the purpose of the
organization existence, highlighting the services and the products it offers. It also identifies the
organization’s operational goals for Infosys, the processes the company uses to achieve those, the target
customer groups, and the region where the company operates.

Components of a mission statement

- The mission statement reflects on how its products and services work towards increasing customer
satisfaction for its target customers.
- The mission statement of Infosys is based on its integral strengths and competencies It highlight
the different systems and processes as well as strategic tactics that the company uses to achieve its
organizational and strategic goals. The achievement of the goals will depend on how well Infosys
makes use of its core competencies.
- The mission statement for Infosys is also realistic and clear. This means that Infosys has used simple,
string, and easily understood words and phrases in the drafting of its mission statement. Clarity is
important so that the mission statement is understood by all relevant stakeholders of Infosys
Company. Infosys’s mission statement is also realistic, which makes it able to achieve various set
goals and targets.
- The mission statement of Infosys is motivational in that it works towards inspiring the employees
and the workforce towards giving their optimal best performance towards the goal achievement of

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 Infosys. The mission statement of Infosys is also inspirational in that it develops the need for growth
and progress in individuals – for the betterment of not only the company but also for their own selves.
- The mission statement of Infosys is precise and to the point. It is easy to understand and delivers
what the audience must know about Infosys’s offerings and operations.
- Highlights its offerings, but ensures that this offering is in line with the values that the company
stands for. The mission statement for Infosys, therefore, identifies the ethical grounds through which
the company systematically works to deliver its offering.

Values
Infosys believe that the softest pillow is a clear conscience. The values that drive them underscore
their commitment to:
 customer delight: to surpass customer expectations consistently
 leadership by example: to set standards in our business and transactions and be an example for
the industry and ourselves.

 Integrity and Transparency: To be ethical, sincere and open in all our transactions
 Fairness: To be objective and transaction‐oriented, and thereby earn trust and respect
 Pursuit of Excellence: To strive relentlessly, constantly improve ourselves, our teams, our
services and products to become the best.

Objectives

Infosys objective is to exploit various technologies to provide effective and cost efficient solutions to
their customers. Infosys believe in working as partners with customers in identifying their needs &
work with them designing solutions to satisfy their business needs through long term relationship

Business Definition

Infosys Technologies (now known as Infosys Limited) is a global IT consulting firm headquartered in
Bangalore, India. The company offers business, technology and software consulting services, product
engineering, customized software development, maintenance of information systems
and outsourcing services to corporations in India and overseas.

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The Strategic Direction of Infosys

- Scale Agile Digital - Invest in digital capabilities & priority services

- Energize the Core - Infuse AI and automation, leveraging NIA
- Expand Skilling - Re-skill talent at scale for Infosys and its clients
- Drive Localization - Hire locally in markets, local delivery & training

Business Model

Since its inception in 1981, Infosys has been the poster boy of the Indian IT Sector. The Bengaluru based
IT company has led a charmed existence. As of now, Infosys is the second-largest Indian IT company
after Tata Consultancy Services (TCS). Known as the IT bellwether, Infosys has built a reputation among
its customers. From a small scale industry to a multinational corporation, Infosys is an ideal business
model.

PRODUCTS AND SERVICES OF INFOSYS BUSINESS MODEL

 NIA which is Next Generation Integrated AI Platform (formerly known as Mana)

 Infosys Consulting is a global management consulting service
 Infosys Information Platform (IIP) which is an Analytics platform
 EdgeVerve Systems which includes Finacle, a global banking platform with different
modules for retail and corporate baking
 Panaya Cloud Suite
 Skava
 Engineering Services
 Digital Marketing

1. Early business years

During the initial decade of its establishment, Infosys concentrated only on the US and Europe;
preferring the global delivery model (GDM). Throughout the 1990s. it focused on just a couple of
sectors- BFSI (banking and financial services) and manufacturing, and soon became a pioneer in a few
areas of IT services- package implementation, application development, and maintenance (ADM in
industry parlance) and testing. The one factor that helped it become a pioneer in the IT sector was that it

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charged a lesser premium over other Indian IT companies compared to the global IT service providers like
IBM and Accenture.

2. Continuous Growth

Infosys publicly traded in India since 1993, and since then, it has registered almost a linear growth. The
factors are many- visibility in the business, ability to increase the per-capita revenues on a go-forward-
basis, ability to attract the best and the brightest, strategic investments, and many more.

3. Transforming Clients To Partners

By developing a long-term relationship, Infosys
has devised a sustainability tactic by
transforming its clients into partners.
With innovation, operational readiness, and
execution, Infosys assists its clients in their
transition to new business models. It helps them
understand the market landscape and make
better decisions.

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 4. Geographical Diversification

With the major presence in India, United States, Australia, China, Japan, Middle East, and Europe, Infosys
had 116 development centers and 84 sales and marketing offices across the world, as in 2017. With its
announcement of a new office in Milwaukee, Wisconsin to service Harley-Davidson, Infosys opened its
18th international office in the United States. When it was listed on NASDAQ in 1999 through the ADR
route, Infosys share price surged to ₹8,100, making it the 20 biggest companies by market capitalization
on the NASDAQ.

5. Unique Products and Services

Infosys has become a pioneer in providing services to companies in finance, insurance, manufacturing,
and other domains. One of its key products ‘Finacle’ has become a popular universal banking solution.
The other key products and services of Infosys are – Infosys Consulting – a global management consulting
service, NIA – Next Generation Integrated AI Platform (formerly known as Mana), EdgeVerve Systems
which includes Finacle, a global banking platform, Infosys Information Platform (IIP)- Analytics
platform, Panaya Cloud Suite, and Skava.

6. Sustainable acquisitions

One of the key factors behind the

rise of Infosys is its sustainable
acquisition. The major Acquisitions
by Infosys are- Expert Information
Services (Australia; in 2003),
McCamish Systems (USA; in
2009), Portland Group (Australia;
in 2012), Lodestone Holding AG
(Switzerland; in 2012), Panaya
(Israel; in 2015), Skava (USA; in
2015), Noah-Consulting (USA; in 2015), Brilliant Basics (UK; in 2017),Stater (2019), GuideVision,
Kaleidoscope, Blue Acorn ICi(2020), Carter Digital (2021)

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 PESTLE ANALYSIS – EXTERNAL ENVIRONMENT

POLITICAL:

Political stability: Indian political structure is considered stable enough expect the Positive
fact that there is a fear of “hung parliament” (no clear majority).

U.S. government has declared that U.S companies that outsource IT work to other Negative
locations other than U.S. will not get tax benefit.

Government owned companies and PSUs have decided to give more IT projects Positive
to Indian IT companies.

Terrorist attack or War Negative

ECONOMIC:
Global IT spending (demand) Positive

Domestic IT Spending (Demand): Domestic market to grow by 20% and reach Negative
approx USD 20 billion in 2008‐09 – NASSCOM

Government owned companies and PSUs have decided to give more IT projects to Positive
Indian IT companies.

Currency Fluctuation. Negative

Real Estate Prices: Decline in real estate prices has resulted reducing the rental Positive
expenditures.

Attrition: Due to recession, the layoffs and job‐cuts have resulted in low attrition Positive
rate.

Economic attractiveness due to cost advantage and other factors Positive

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SOCIAL

Language spoken: English is widely spoken language in India, English medium Positive
being the most accepted medium of education. Thus, India boasts of large English
speaking population.

Education: A number of technical institutes and universities over the country Positive
offer IT education.

Working age population Positive

TECHNOLOGICAL

Telephony: India has the world’s lowest call rates (1‐2 US cents). Expected to Positive
have total subscriber base of about 500 million by 2010. ARPU for GSM is USD
6.6 per month. India has the second largest telephone network after
china. Teledensity – 19.86 % Enterprise telephone services, 3G, Wi‐max and
VPN are poised to grow.

Internet Backbone: Due to IT revolution of ‘90s, Indian cities and India is well Positive
connected with undersea optical cables

New IT technologies: Technologies like SOA, Web 2.0, High‐definition content, Positive
grid computing, etc and innovation in low cost technologies is presenting new
challenges and opportunities for Indian IT industry.

LEGAL

IT SEZ requirement: IT companies can set up SEZ with minimum area of 10 Positive
hectares and enjoy a host of tax benefits and fiscal benefits

Contract / Bond requirements: Huge debates surrounding the bonds under which Negative
the employees are required to work, which is not legally required.

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IT Act: Indian government is strengthening the IT act, 2000 to provide a sound Positive
legal environment for companies to operate esp. related to security of data in
transmission and storage, etc.

Companies operating in Software Technology Park (STPI) scheme will continue Positive
to get tax‐benefit till 2010.

IT SEZ requirement: IT companies can set up SEZ with minimum area of 10 Positive
hectares and enjoy a host of tax benefits and fiscal benefits

Contract / Bond requirements: Huge debates surrounding the bonds under which Negative
the employees are required to work, which is not legally required.

IT Act: Indian government is strengthening the IT act, 2000 to provide a sound Positive
legal environment for companies to operate esp. related to security of data in
transmission and storage, etc.

Companies operating in Software Technology Park (STPI) scheme will continue Positive
to get tax‐benefit till 2010.

ENVIRONMENTAL

Energy Efficient processes and equipments: Companies are focusing on reducing Positive
the carbon footprints, energy utilization, water consumption, etc.

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 MCKINSEY 7S ANALYSIS

1. Style (Leadership):

Infosys believes that leadership is one of the most essential

ingredients of organizational success which is provided by its
chairman. Leadership is based on high business vision and
predominantly supportive styles. There is emphasis on developing
leadership qualities among employees. For this purpose, it has
established Infosys Leadership Institute. Top management
emphasizes on open door policy, continuous sharing of
information, takes input from employees in decision making, and
builds personal rapport with employees. Infosys has seen smooth
transition through its different chairman without any adverse effects on the company outlook and each
one has proved to be an able leader taking company forward.

2. Staff:

Since Infosys is in knowledge- based industry, it focuses on the quality of the human resources. Out of
total personnel, about 90% are engineers. At the entry level, it emphasizes on selecting candidates who
find the company’s meritocratic culture satisfying, superior academic records, technical skills, and high
level of learn ability. The company emphasizes on training and development of its employees on
continuous basis and spends about 2.65% of its revenues on upgradation of employees skills and around
50% as employee costs. In spite of thousands of people joining every month, Infosys has been able to
maintain its training standard mostly due to its highly matured processes capabilities and investment in
infrastructure.

3. Strategy:

Infosys has adopted a client‐focused strategy to achieve growth. Rather than focusing on numerous small
organizations, it focuses on limited number of large organizations throughout world. In order to cater its
clients, the company emphasizes on custom‐built software’s. Another differentiating factor for Infosys is
that it commands premium margins. Company does not negotiate over margins beyond a certain limit and

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some time prefers to walk‐out rather than compromise on quality for low‐ cost contracts. This has helped
in building an image for quality driven model rather than cost‐ differentiating model.

Increase business from existing and new clients: Infosys has focused on expanding the nature and scope
of engagements for the existing clients by increasing the size and number of projects and extending the
breadth of its service offerings. For new clients, it provides value added solutions by leveraging its in‐
depth industry expertise. It increases its recurring business with clients by providing software re‐
engineering, maintenance, infrastructure management and business process management services which
are long‐term in nature and require frequent client contact.

Expand geographically: Infosys plans to establish new sales and marketing offices, representative offices
and global development centers to expand its geographical reach. It plans to increase presence in China
through Infosys China, in the Czech Republic and Eastern Europe directly and through Infosys BPO, in
Australia through Infosys Australia and in Latin America, through Infosys Mexico.

Enhance solution set: Infosys focuses on emerging trends, new technologies, specific industries and
pervasive business issues that confront our clients. In recent years, it has added new service offerings,
such as consulting, business process management, systems integration and infrastructure management,
which are major contributors to its growth. Develop deep industry knowledge: Infosys has specialized
industry expertise in the financial services, manufacturing, telecommunications, retail, transportation and
logistics industries.

Enhance brand visibility: Infosys invests in the development of its premium brand identity in the
marketplace by participating in media and industry analyst events, sponsorship of and participation in
targeted industry conferences, trade shows, recruiting efforts, community outreach programs and investor
relations. Pursue alliances and strategic acquisitions: Infosys is known for its organic growth (risk averse)
strategy though it has strategic alliance with leading technology providers take advantage of emerging
technologies in a mutually beneficial and cost‐competitive manner.

4. Shared Values:

Values are important part of Infosys’s organizational culture. In fact its tagline depicts how much emphasis
it lays on core values. The core values are:

• Customer Delight: A commitment to surpassing customer expectations.

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• Leadership by Example: A commitment to set standards in business and transactions and be an exemplar
for the industry and teams.

• Integrity and Transparency: A commitment to be ethical, sincere and open in our dealings.

• Fairness: A commitment to be objective and transaction‐oriented, thereby earning trust and respect.

• Pursuit of Excellence: A commitment to strive relentlessly, to constantly improve ourselves, our teams,
our services and products so as to become the best.

5. Structure (Organizational):

The company has adopted a free form organization devoid of hierarchies. Everyone is known as associates
irrespective of his position in the company. Software development is undertaken through teams and the
constitution of teams is based on the principle of flexibility. A member, who might have been team leader
in one project, may be replaced by another member of the same team for another project. This system not
only helps in creating the feeling of equality but also helps in developing project leaders.

6. Skills:

From last year, Infosys has made it mandatory for every employee to clear a predefined certifications,
domain as well as technical, in order to be eligible for appraisal. This is just one of the initiatives taken by
Infosys which signifies the efforts taken for building competencies. Apart from internal initiatives like
knowledge management, Infosys has been CMM‐Level 5 certified for its process capabilities. Infosys has
entered the Balanced Scorecard Hall of Fame for Executing Strategy for achieving breakthrough
performance results using the Balanced Scorecard (BSC).

ANALYSIS OF INTERNAL ENVIRONMENT - SWOT (INFOSYS)

SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses
are result of Infosys internal factors, while opportunities and threats arise from developments in external
environment in which Infosys operates. SWOT analysis will help in not only getting a better insight into
Infosys present competitive advantage but also helps to understand how things have to evolve o maintain
and consolidate the competitive advantage.

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 Strengths
- Experienced and successful leadership team
- Proven “Global delivery model”
- Status as an employer of choice
– Infosys management team has been a success over last
decade by successfully predicting trends in the industry.
- Streamlined processes and efficient operation
management
– Infosys is one of the most efficient firms in its segment.
The credit for the performance goes to successful
execution and efficient operations management.
Opportunities
- E-Commerce and Social Media Oriented Business
Models
– E-commerce business model can help Infosys to tie up
with local suppliers and logistics provider in international
market.
-Social media growth can help Infosys to reduce the cost
of entering new market and reaching to customers at a
significantly lower marketing budget.
- Lucrative Opportunities in International Markets
Weakness
- Infosys business model can be easily replicated by
competitors
- Low profitability which can hamper new project
investment
– Even though Infosys financial statement is stable, but
going forward Infosys Intellect 5-7% profitability can
lead to shortage of funds to invest into new projects.
Threats
- Growing dominance of digital players such as Amazon,
Google, Microsoft etc can reduce the manoeuvring space
for Infosys and put upward pressure on marketing budget.
- Customers are moving toward mobile first environment which
can hamper the growth as Infosys still hasn’t got a
comprehensive mobile strategy.
- Intense competition in the market for technology
services could affect cost advantages.
- The economic environment, pricing pressure and rising
wages in India and overseas
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– Globalization has led to opportunities in the
international market. Infosys is in prime position to tap
on those opportunities and grow the market share.

ORGANISATIONAL LEVEL STRATEGIES OF INFOSYS

CORE STRATEGIES

- Global Delivery Model – Producing where it is most cost effective to produce & selling where it is
most profitable to sell.
- Moving up the Value Chain – Getting involved in a software development project at the earliest
stage of its life cycle.
- PSPD Model – “Predictability of Revenues, Sustainability of Revenues, Profitability, De‐risking” for
risk management.

Actions Taken:

1. To maintain low‐cost advantage they have opened offices in Czech Republic, Mauritius, Poland,
Philippines, Thailand and Mexico.

2. Invested in developing training centers –

3. Improved quality capabilities – CMM level 5i Company.

4. Infosys Consultancy established to provide high end services in value chain.

5. Has hedged currency for more predictability

Philosophy behind the acquisition strategy: Infosys is a firm believer in “Organic growth” and acquire
only those companies in line with strategic goals.

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 BUSINESS LEVEL STRATEGIES

1. Low cost Global delivery 24/7 Model.

2. Little differentiation in low‐end services of value chain; high differentiation in high end services
of value chain like software products and package solutions.

3. Focus on quality, customer relationship management, and timely delivery.

GROWTH STRATEGIES

MARKET PENETRATION STRATEGY:

Current Markets: USA and Europe Current Products: ADM, BPO, KPO, consultancy services (in BFSI,
manufacturing and retail) and software products (financial products).

Recommendation: As most large clients in US and Europe are cutting costs, Infosys needs to be more
aggressive on cost and quality front.

Result of strategy: Unlikely to yield good results.

MARKET DEVELOPMENT STRATEGY:

New Market: India, Middle‐east and Australia

Current Product: ADM, BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and
software products (financial products).

Recommendation: Since these are fast developing IT market, Infosys needs a paradigm shift in focus from
US and EU markets to these markets.

Result of strategy: Likely to yield good result.

PRODUCT DEVELOPMENT STRATEGY:

Current Market: USA and Europe

New Product: Consultancy and package implementation services in relatively growing sectors esp.
healthcare, life sciences and aviation sector, and KPO services.

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Recommendation: Concentrate on building expertise in these domains by strategic acquisitions. Result
of Strategy: Likely to have good result.

DIVERSIFICATION:

New Market: India, Middle‐east and Australia

New product: Consultancy and package implementation services in relatively growing sectors esp.
healthcare, life sciences and aviation sector, and KPO services.

Recommendation: Changing Brand image from low value service provider to high value service
provider.

Result of Strategy: Difficult to achieve overnight (possible in long term)

OTHER STRATEGIES:

CONCENTRATION: For Infosys, 90% of revenues come from American and European nations.

VERTICAL INTEGRATION: Infosys recently made a bid to acquire a European major – Axon
consultancy to improve its business in European markets, but finally called off the deal due to high
valuation. Otherwise, Infosys has always believed in organic growth.

INNOVATION:

The Software Engineering and Technology Labs (SETLabs) at Infosys is the center for applied technology
research in software engineering and enterprise technology. SETLabs conducted 24 Innovation
Workshops with customers from the US and Australia, to identify research collaboration possibilities.
Infosys promotes a favorable work environment that encourages innovation and meritocracy.

STRATEGIC EVALUATION

Infosys has been one of the most successful Global IT Company.

Scenrio I – Pre Economic slowdown & sub-prime crisis

Met with Grand success:

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It has grown from under US$ 1B to more than US$ 4B revenues in less than a decade. It was also the first
IT company from India to be listed on NASDAQ stock exchange.

Acquisition by IT companies increase revenues but negatively impacts bottom-line. Infosys avoided
acquisitions and maintained the margins.

Scenario II – Post Economic slowdown & subprime crisis

Organic growth strategy becoming untenable, competitors are more active and there could be loss of
competitive edge if Infosys sticks to only organic growth.

IT services market has matured – consolidation amongst IT players is the key

High margins are eroding – no longer 30% margins possible

Difficult to add revenues organically – due to global slowdown

VRIO ANALYSIS
The VRIO Analysis of Infosys will look at each of its internal resources one by one to assess whether
these provide sustained competitive advantage. Resources of an organization can be categorized into two
categories – Tangible resources and Intangible Resources.

Tangible resources of Infosys Intellect include - physical entities, such as land, buildings, plant,
equipment, inventory, and money.

Intangible resources of Infosys Intellect are –skill and administrative level of managers, brand names and
goodwill of the company, intellectual property rights, copyrights, trademarks, and special relationship
with supply chain partners.

This Analysis also mentions at each stage whether these resources could be improved to provide a greater
competitive advantage. Lastly, the resources analysed are summarised as to whether they offer sustained
competitive advantage, has an unused competitive advantage, temporary competitive advantage,
competitive parity or competitive disadvantage.

VALUABLE
The critical resources that are valuable to the firm are - financial resources, human resources, marketing
expertise, and operations management

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 The financial resources of Infosys are highly valuable as these help in investing into external
opportunities that arise. These also help Infosys in combating external threats.
 Its local food products are a valuable resource as these are highly differentiated. This makes the
perceived value for these by customers high. These are also valued more than the competition by
customers due to the differentiation in these products.
 Infosys's employees are a valuable resource to the firm. A significant portion of the workforce is highly
trained, and this leads to more productive output for the organisation. The employees are also loyal,
and retention levels for the organisation are high. All of this translates into greater value for the end
consumers of Infosys's products.
 Its patents are a valuable resource as these allow the firm to sell its products without competitive
interference. This results in greater revenue for Infosys. These patents also provide Infosys with
licensing revenue when it licenses these patents out to other manufacturers.
 Infosys’s distribution network is a valuable resource. This helps it in reaching out to more and more
customers. This ensures greater revenues for Infosys. It also ensures that promotion activities translate
into sales as the products are easily available.
 Its cost structure is not a valuable resource. This is because the methods of production lead to greater
costs than that of competition, which affects the overall profits of the firm. Therefore, its cost structure
is a competitive disadvantage that needs to be worked on.
 The R&D at Infosys is not a valuable resource. This is because research and development are costing
more than the benefits it provides in the form of innovation. There have been very few innovative
features and breakthrough products in the past few years. Therefore, research and development are a
competitive disadvantage for Infosys. It is recommended that the research and development teams are
improved, and costs are cut for these.

RARE
The resources that are valuable to the Infosys Intellect are to be analysed whether rare or costly to attain.
If they are not rare than both present competitors and new entrants will easily able to get access to them
and enter the competitive landscape.

 The financial resources of Infosys are found to be rare. Strong financial resources are only possessed
by a few companies in the industry.

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 The local food products are found to be not rare. These are easily provided in the market by other
competitors. This means that competitors can use these resources in the same way as Infosys and
inhibit competitive advantage. This means that the local food products result in competitive parity for
Infosys. As this resource is valuable, Infosys can still make use of this resource.
 The employees of Infosys are a rare resource. These employees are highly trained and skilled, which
is not the case with employees in other firms. The better compensation and work environment ensure
that these employees do not leave for other firms.
 The patents of Infosys are a rare resource. These patents are not easily available and are not possessed
by competitors. This allows Infosys to use them without interference from the competition.
 The distribution network of Infosys is a rare resource. This is because competitors would require a lot
of investment and time to come up with a better distribution network than that of Infosys. These are
also possessed by very few firms in the industry.

IMITABLE
At present most industries are facing increasing threats of disruption. It seems that the core differentiation
of the Infosys Intellect is difficult to imitate. On a broader scale – imitation of products of Infosys Intellect
can happen in two ways – Duplication of the products of the company, and competitors coming up with
substitute products that disrupt the present industry structure.

 The financial resources of Infosys are costly to imitate. These resources have been acquired by the
company through prolonged profits over the years. New entrants and competitors would require
similar profits for a long period of time to accumulate these amounts of financial resources.
 The local food products are not that costly to imitate. These can be acquired by competitors as well if
they invest a significant amount in research and development. These also do not require years long
experience. Therefore, the local food products by Infosys provide it with a temporary competitive
advantage that competitors can too acquire in the long run.
 The employees of Infosys are also not costly to imitate. This is because other firms can also train their
employees to improve their skills. These companies can also hire employees from Infosys by offering
better compensation packages, work environment, benefits, growth opportunities etc. This makes the
employees of Infosys a resource that provides a temporary competitive advantage. Competition can
acquire these in the future.

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 The patents of Infosys are very difficult to imitate. This is because it is not legally allowed to imitate
a patented product. Similar resources to be developed and getting a patent for them is also a costly
process.
 The distribution network of Infosys is also very costly to imitate by competition. This has been
developed over the years gradually by Infosys. Competitors would have to invest a significant amount
if they are to imitate a similar distribution system.

ORGANISATION
Organizational Competence & Capabilities measures how much the company is able to harness the
valuable, rare and difficult to imitate resource in the market place. The exploitation level analysis for
Infosys Intellect products can be done from two perspectives. Is the firm able to fully exploit the potential
of the resource, or it still has lots of upside.
Often the exploitation level is highly dependent upon execution team and execution strategy of the firm.
So exploitation level is a good barometer to assess the quality of human resources in the organization.
Capabilities tend to arise or expand over time as a firm takes actions that build on its strategic resources.

 The financial resources of Infosys are organised to capture value. These resources are used
strategically to invest in the right places; making use of opportunities and combatting threats.
Therefore, these resources prove to be a source of sustained competitive advantage for Infosys.
 The Patents of Infosys are not well organized. This means that the organisation is not using these
patents to their full potential. An unused competitive advantage exists that can be changed into a
sustainable competitive advantage if Infosys starts selling patented products before the patents expire.
 The distribution network of Infosys is organised. Infosys uses this network to reach out to its customers
by ensuring that products are available on all of its outlets. Therefore, these resources prove to be a
source of sustained competitive advantage for Infosys.

From the VRIO Analysis of Infosys, it can be found that the financial resources and distribution network
provide a sustained competitive advantage. The patents are a source of unused competitive advantage.
There exists a temporary competitive advantage for employees. There exists a competitive parity for local
food products. Lastly, the cost structure of Infosys is a competitive disadvantage. Research and
Development is also a competitive disadvantage.

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 VALUE CHAIN ANALYSIS OF INFOSYS TECHNOLOGIES

Infosys Intellect value chain is part of a larger value system of the industry that includes companies either
upstream (suppliers) or downstream (distribution channels), or both. Infosys need to see each activity as
part of that value system and how adding each activity or reducing each activity impact them, The decision
is regarding where to sit in the value system.

As per the Value Chain model there are broadly two generic categories of activities – Primary Activities
and Supporting Activities.

PRIMARY ACTIVITIES IN PORTER’S VALUE CHAIN

Infosys Intellect has five generic categories of primary activities –

1. Inbound Logistics
These activities of Infosys Intellect are associated with receiving, storing and disseminating the inputs of
the products. It can include material handling, warehousing of physical products, as well as architecture
to receive and store customer information for digital media company. Infosys Intellect at present has
outsourced most of its inbound logistics activities.

2. Operations

Activities that help the organization to transform raw material into finished products. For the purpose of
this article the definition is broad – it can mean using customer data to serve advertisements based on
usage behavior to clients, moulding plastic to make products etc.

3. Outbound Logistics
Infosys Intellect under takes these activities to distribute the finished products to channel partners and
final buyers. Outbound logistics activities include – warehousing, processing, scheduling, wholesalers and
retailers order fulfillment, and distribution network.

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 4. Marketing and Sales
These activities are undertaken by Infosys Intellect to create means through which the buyer can buy a
firm’s products. These activities include – sales force management, channel selection, advertising and
promotion, pricing, marketing etc.

5. Services
Infosys Intellect needs to provide after sales services and maintenance for successful usage of the product.
Service activities of Infosys Intellect can include – training, post sales maintenance, product forward and
backend alignment of software, part supply, and installation services.
SUPPORT ACTIVITIES

Support Activities of Infosys Intellect are the one that supports the firm’s Primary Activities. Porter
divided the Support Activities into four broad categories and each category of support activities is divisible
into a number of distinct value activities that are specific to the industry in which Infosys Intellect operates.
The four generic support activities are –

1. Firm Infrastructure
Firm infrastructure support activities consists activities such as – legal services, planning, quality
management, general management and finance and accounting.
It supports entire value chain though the scope varies given that Infosys is a diversified company even
within the industry. For example the finance and planning at Infosys are managed at corporate level while
quality management, accounting and legal issues are managed at business unit level.

2. Human Resources Management

HRM support activities include – Recruiting, Training & Development, Selection, Skill Assessment,
Hiring, People Planning and Compensation at both business unit level and corporate level.
Human resource management affects competitive advantage in any firm, but in some industries it is
defining factor. For example in the consulting companies HR is the main source of competitive advantage.

3. Technology Development
Technology development at Infosys Intellect may include activities such as - process engineering, field-
testing, component design, feature design, and technology selection.

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 4. Procurement Activities at Infosys Intellect
Procurement activities include activities that are undertaken to purchase inputs that are used by Infosys
Intellect’s value chain. It doesn’t include purchase inputs themselves. Purchased inputs may include - raw
materials, supplies, machinery, laboratory equipment, office equipment, and buildings.
Like all other value chain activities procurement also employs technology for things such as – procedures,
vendor management, information system, and supply chain partner qualification rules and ongoing
performance evaluation.

BCG MATRIX (Indian Business)

Stars Question
Marks
software

HIGH
products Consulting,
HIGH GROWTH MARKET

BPO, package
BPO implementation.

Cash Cows
Maintenance Dogs
LOW

Application & None

Development.

HIGH LOW

RELATIVE MARKET SHARE

Dogs: When relative market share as well as market growth both are low then the circumstances is known
as dogs. If we apply this on Infosys Solutions Ltd none of them is applicable to dogs.

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Cash Cows: When market share is high and market growth is low then your situation is recognized as cash
cows. Here, in Infosys this situation is applied on maintenance program and development software
products.

Stars: When market share and market enhancement both are high then the situation is recognized as stars.
Here Infosys Technology Ltd, BPO comes under stars.

Question Marks : When market share is low and market expansion is high then the situation is named
question marks. Question marks are also known as problem child. Consulting KPO and package
implementation are considered as question marks here.

COMPETITOR ANALYSIS - PORTERS FIVE FORCES MODEL

Threat of substitutes : Regarding threat of substitutes other offshore locations such as Eastern European
countries, the Philippines and China, are rising and are posing hazard to Indian IT industry because of
their cost-advantage. However, this should impact only in the medium to long term. Along with this price
quoted for projects is a significant differentiator, the grade of products being same.

Bargaining power of suppliers: Because of slowdown, the job-cuts, the layoffs and break IT view and
supply of IT professionals is no longer that advantageous to employees. Availability of vast expertise pool
of freshers and experienced professionals can also increase their power.

Bargaining Power of Customers :. Large numbers of IT companies for doing IT projects and thus high
competition exists.

Threat of new entrants : low, because of capital requirements and large value string which provide space
for small companies. But, MNCs are ramping up capacity and employee strength.

Rivalry among Competitors: High, because of the Commoditized offerings, low-cost, little-differentiation'
placement, high industry progress and strong competition like few numbers of large companies.

PAGE 24
 Threat of Substitutes:
1. Other offshore locations such as Eastern Europe, the
Philippines and China, are emerging and are posing
threat to Indian IT industry because of their cost‐
advantage. However, this should have an impact only in
the medium to long term.

2. Price quoted for projects is a major differentiator, the

quality of products being same

Bargaining power of
supplier:
1. Due to slowdown, the
job‐cuts, the layoffs and
bleak IT outlook.
2. Demand and supply of
IT professionals is no
longer that favorable to
employees.
3. Availability of vast
talent pool – fresh and
experienced
Medium
Bargaining Power of
Customers:
Shift
from 1. Large number of IT companies
High
RIVALRY AMONG
FIRMS: High vying for IT projects – resulting in
to
high competition for projects.
Low
1. Commoditized offerings
2. Huge decline in IT expenditure:
2. 'low‐cost, little‐ Indian IT sector is dependent on
differentiation' positioning. USA and BFSI in particular for
Very majority of its revenues, and with
3. High industry growth
High the recent financial crisis, the new
4. Strong competitors – few spending from these has reduced
number of large companies tremendously.
3. However, for the existing
products and services, the clients
continue the old companies.
Low

Barriers to Entry
1. Low capital requirements.

2. Large value chain, space for small enterprises.

3. MNCs are ramping up capacity and employee

strength.

PAGE 25
 Comparative Analysis of Infosys, TCS and WIPRO
TATA Consultancy Services Wipro Infosys
• TCS is the grandfather • From 1999, PR, analyst relations • “New kid on the block” – Mr.
and website became important Murthy
• Unlisted till 2004, cared little • Less focus on branding and • Need to be different to compete
about publicity and concentrated more on sales with MNC
on customers
• Grabbed customers and created • In 2001, the need for brand was • Hiring smart people to sell in
relationships realized EU and US markets
• Big in size and low on prices • “Applying Thought” • Listing on NASDAQ partially to
instill confidence in customers
• Now it has become choosy and • Driven by technological • Partnerships with educational
fussy evolution and R&D institutes like Wharton
• Stable and trustworthy • Originally into hardware and • Focus more on PR and
then into software communication for visibility
• Great expertise, lot to offer and
low price

CONCLUSION

This case study explores Infosys from strategic management point of view. With their strategic planning
and leadership, Infosys has worked hard and even managed to remain competitive even in the era of a
worldwide financial downturn. They still need to concentrate on inner and external variables that help to
win the weakness and challenges. It is very evident that Infosys services will play a significant part in
their overall income. That is to say, 31.6% of its total income by economic services, 15.9% - retail, 13.5%
- communications, 12.7% - energy, utilities, infrastructure and services, 10% - manufacturing, 7.7% - hi-
tech and 6% - life sciences. By outsourcing its services worldwide, i.e. 2.3 percent from India, 24 percent
from Europe, 61.2 percent from North America and 12.5 percent from the rest of the globe, Infosys
obtained its total revenue. Also Infosys increases their employees count every year. Outsourcing may be
used to improve cost, quality, and service and time-to-market effectiveness. Infosys has distributed its
branches and centers of growth throughout India, Australia, Canada, Japan, UK and many other nations.
Infosys set a fresh revenue record in 2017 by gaining second place among Indian IT businesses and the
world's 596th biggest public company.

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 FUTURE PLANS :

Infosys focuses on innovative digital techniques to make the correct choices to enhance its efficiency in
order to achieve its goals. The firm also intends to expand its workforce in the US, its biggest market. It
announced a plan to employ 10,000 Americans in the United States. Digital labour management, process
re-engineering, talent and value chain sharing innovation–these are future outsourcing opportunities.

References

1. Vision And Mission Of Infosys In Consulting And It Services Business Essay. UKEssays.com. Retrieved
from https://www.ukessays.com/essays/business/vision-and mission-of-infosys-in-consulting-and-it-
services-business-essay.php
2. Infosys Limited. Innovative IT Business Solutions & Services for Industries | Infosys. Retrieved from
https://www.infosys.com/services/.
3. Infosys Limited. Infosys BPM - Services | Business Processes Management. Retrieve from
https://www.infosysbpm.com/offerings/functions/pages/index.aspx
4. https://embapro.com/frontpage/casestudysolution/6670-infosys-intellect

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