STRATEGIC ANALYSIS OF INFOSYS

1/9/2012

Prepared by Surya kiran(BLR1107094002) Prashant kumar(BLR1107094013) Ranjith kumar(BLR1107039059) Prashant shelar (BLR1107094012)

.................. 7 CPM ....................................................................................................... 8 Conclusion .................... 6 EFE Matrix ...................................................................................................................................................................... 9 Surya kiran Prashant shelar Ranjith kumar Prashant kumar ..................... 4 Reduction of five forces on Infosys............................................................................................................................................................................................................2 Contents Executive summary ................................................................................................ 8 Bibliography.................................................. 4 Infosys s external environment analysis........................PESTLE analysis ........................................................................................................................................................................................................................................................ 3 Introduction ..........

 Economic slowdown due to fluctuation in currency was major reason for cut down of hiring. the hiring of fresher s has been cut down by significant percentage. its respond to threat and opportunity is good as compare to other companies.  Due to recession in U. Surya kiran Prashant shelar Ranjith kumar Prashant kumar .S and then after cut down on taxes by US Government.  The establishment of brand Infosys has made it stand out in tough times even the market share is dominated by its competitors like TCS and Wipro.3 Executive summary  Infosys is the leading IT Indian multinational and third largest IT firm with market share of 8%.  On scale of External factor evaluation.

UK. Narayana Murthy. leading technology companies in a statement by The Boston Consulting Group. application services. government not give any tax benefit for those company which outsource IT work to other places. systems integration.S.4 Introduction Infosys Limited. Japan. 3) Real state price has growing dramatically which increased the rental expenditure. independent testing and validation services. It also voted India's most accepted company in The Wall Street Journal Asia every year since 2000. 3) Because of globalization and demand for high speed and accuracy government owned companies and PSUs are now giving their IT projects to Indian IT companies. New Delhi. Infosys has been ranked amongst the most inventive companies in a Forbes survey. R. 2) In the U. The corporate governance practices in Infosys were recognized by The Asset Platinum award and the IR Global Rankings. 4) India is always a target for terrorist attack. The GDM is based on the theory of taking work to the place where the best talent is available. Canada and many other countries. Australia. which emerged as a disruptive force in the industry leading to the rise of offshore outsourcing. Switzerland.PESTLE analysis Political 1) Indian political condition is considered stable enough but there is always a fear of hung parliament because of no clear majority for any political party. with the least amount of tolerable threat. custom software development. Germany. maintenance. product engineering.604 billion (LTM Q2-FY12). Today. China. India. The company¶s primary business is business and technology consulting. Infosys was founded in 1981 by N. re-engineering. it has 64 offices and 65 development centres in US. Pune. 4) Due to recession job-cuts have resulted in low attrition rate. Surya kiran Prashant shelar Ranjith kumar Prashant kumar . and Hyderabad always be a prime target for terrorist attack. Mumbai. Infosys pioneered the Global Delivery Model (GDM). formerly known as Infosys Technologies Limited is a global technology services company. and 6 other software engineers. IT hubs like Bangalore. 2) Fluctuation of currency. Netherlands. Middle East. where it can make the most excellent economic intelligence. Infosys was also ranked as the 15th most reliable brand in India by The Brand Trust Report in 2011. and top ten green companies in Newsweek's Green Rankings. Economical 1) Because of increasingly globalised world recession has also impacted the Indian economy which affected all the industry including IT. France. Infosys is a worldwide leader in the "next generation" of IT and consulting with revenues of US$ 6. IT infrastructure services and business process outsourcing. Poland. Infosys s external environment analysis.

Legal 1) Indian government is strengthening the IT act 2000 to provide legal environment for companies. high-definition content etc has changed the way of business for IT industry. which is not legally required. This is associated to protection of data in transmission and storage. cloud computing.5 Social 1) Number of technical institutes and universities has grown in the country which offers IT education. 2) Technology like Service oriented architecture. Technological 1) Due to IT revolution since 90s all Indian major cities are well connected through optical cables. 2) India has more than 50%t working age population which is largest in the world. Environmental 1) For most enterprises. web2.0. Surya kiran Prashant shelar Ranjith kumar Prashant kumar . 2) Companies make bonds under which the employees are required to work. grid computing. green IT strategy is limited to greening of IT infrastructure. 3) India has the second largest telephone network and also the world¶s lowest call rate. where newer and better technologies are leveraged to reduce energy requirements. 3) Number of English speaking population has grown in India and now English is become the most established language in India for education.

Differentiation in products Focusing on different segments to improve more growth than other companies. Communication with competito Reducing threats from substitutions Legal action Price is reduced and quality increased Entering into substitution market and influencing them and Showing differences between them Surya kiran Prashant shelar Ranjith kumar Prashant kumar . Improving supply chain management and training Getting own supplier Reducing bargaining power of customers Increasing brand loyalty Adding much better values and incentives Giving more opportunities to old companies Getting directly to customers Reducing threats to new entrants Increasing MES (minimum efficient scale) Creating brand image Patenting on that brand loyal commodity Forming cartels Not giving opportunities to small enterprises Infosys Reducing the competitive rivalry Moving away from price competition i.e.6 Reduction of five forces on Infosys Reducing bargaining power of suppliers Giving opportunities to new one. reducing cost. positioning.

6 0. Cut down on taxes on outsourcing by U.1 0.1 0.3 0.05 1 2 1 3 2 1 2 0.82 Surya kiran Prashant shelar Ranjith kumar Prashant kumar . Thus this model gives us a systematic structured and good market product in market segments. companies and regions.5 0.1 0. Government Emergence of Chinese companies in IT sectors Slow down of Indian economy Target destination by terrorist in India Satyam fiasco on image of IT sector Total Weight 0.6 1 2 3 4 5 6 7 8 9 10 0. economical and social causes.1 0.  It gives whether we have chosen right industry or not.  It shows impact on competitors and how it is impacted by competitors.15 Rating 4 4 3 4 Weighted score 0.12 0.4 0.1 0. industries. EFE Matrix Key external factors Opportunities Establishing of new IT hubs in India Increase of IT education in India Emergence of new small domestic companies Increase of cloud & grid computing technology at cheaper rate Threats Impact of recession in U.36 0.S.15 0.08 0. 3) Analysis of options 1) With the obtained knowledge we could develop better options than the competitors.16 0.  It has an impact to change its structure also.1 0. 2) Dynamic analysis  It majorly influenced by dynamics like political.1 0.10 2.S.7 Benefits from porters¶ model 1) Statical analysis  It is beneficial to internal environment that gives the likeness of industry and also profitability.

Even though Wipro has more market share than Infosys its still manages to be world leader in next generation of IT and consulting.15 0.15 0.3 2 0.2 0.6 2 0.6 3.55 Weight 0.6 2 0.82 which rate him as good for responding to threats and opportunities in present scenario.1 0.1 0.6 3 0.8 CPM CSF s Market share Global experience Organization structure Product quality Price competencies Customer services Financial position total Weight 0.2 3 0.0 Infosys rating Weighted score 4 0.1 0.15 0.2 4 0.3 4 0.15 0.3 4 0.40 Conclusion Infosys.1 0.15 0.15 0.15 0.8 3.15 1.6 4 0. Surya kiran Prashant shelar Ranjith kumar Prashant kumar . as per EFE (External Factor evaluation) scores 2.8 3 0.6 4 0.0 Wipro rating Weighted score 4 0.45 4 0.2 1.

9 Bibliography 1. Indian IT/ITes Industry: Impacting Economy and Society: 2007-08 ± A NASSCOM and DELIOTTE Study.infosys.aspx 2. IT/ITeS ± Market and Opportunities ± IBEF (India brand equity Foundation). http://www. 3.yahoo.finance.com Surya kiran Prashant shelar Ranjith kumar Prashant kumar . 4. www.com/newsroom/Pages/aboutus.

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