Description
The PPT is describes about Global Marketing in Wipro infotech.
GLOBAL MARKETING IN WIPRO INFOTECH: A STRATEGIC PERSPECTIVE
Case Introduction
• Wipro is amongst the major players in Indian IT industry • Booming IT industry in India; India being recognized as the global centre for research and development • Emergence of New Economic Policy (NEP) triggered liberalization and provided major impetus to international business • lot of growth opportunity in IT sector in India leading to intensive competition in the domestic market • Companies forced to the export route to survive in the market
Issues
• • • • Lack of a planned strategy for going global Not a proactive player Increased competition by the new entrants Collaborations of other domestic companies with MNCs
Key Issue
• To formulate a strategy for international markets to cope with intense competition
SWOT Analysis
Strengths •Skilled manpower •Multi domestic market philosophy •Research and Development •Low cost advantage Weaknesses •Not a proactive company •Small player in global market •Limited domain •Clients not trusting the capabilities of Indian Software Cos. Threats
Opportunities
•Huge global market •Huge potential in domestic market •Y2K Crisis
•Competition by Indian companies in domestic market •Presence of big companies in global market •Exchange rate
Strengths
• Skilled manpower Diversified skill base across service lines delivery capabilities & client satisfaction • Multi domestic market philosophy Commitment to go the extra mile • Research and Development Technological partnership with other software companies • Low cost advantage Ability to continually reduce the cost of services
Weakness
• Not a proactive company Domestic market was huge but was underdeveloped • Small player in global market No exposure to standard work • Limited domain Wipro provided very limited number of services. Also Standard international quality practices like Six Sigma and CMMI are not in place
• Clients not trusting the capabilities of Indian Software Cos.
Opportunities
• Huge global market The Company has entered into the global market so now it’s the biggest opportunity available to the company. • Huge Potential in Domestic Market • Y2K Crisis
Threats
• Competition by Indian companies in domestic market • Presence of big companies in global market • Exchange rate This can be a threat to the company as the company is making profits due to the high exchange rate and if this rate comes down in future it can lead to a major problem for the company.
PEST Analysis
Political Factors Economic Factors
• Liberalization • Support of Government policies towards free trade
• Increased foreign investment • Change in policies • Exchange rate
Social Factors • Immense intellectual Capital
Technological Factors • Easy access to various business clients • Comfort to global customers and suppliers
Political Factors
• Liberalization New Economic Policy (NEP) introduced in the country helped the company to excel in the global market, providing variety of benefits. • Support of Government policies towards free trade Export incentives and duty concessions, which showed the company a new opportunity abroad.
Economic Factors
• Increased foreign investment The increased foreign investments in software technology parks ensured growth in further coming years. • Change in policies Many economic policies changes in the country helped Wipro in their growth. At that time the new policies were going in favour of the whole software industry. • Exchange rate High exchange rate helped the Company to take an advantage over other global players which actually allowed it provide products and services at lower costs.
Social Factors
• Immense intellectual Capital
Technological Factors
• Easy access to various business clients • Comfort to global customers and suppliers Due to improvement in the technology access to the business became easy to other business partners including various suppliers and customers
Other Advantages
• Investment in Research and development Wipro invested in research and development very early, this early investment helped it to grow faster and thus it took an advantage over other domestic competitors.
Competitor Analysis
POTENTIAL ENTRANTS
“Major Threat”
Industry Competitors
SUPPLIERS (Bargaining power of Suppliers)
“Minor Threat”
Rivalry Among Firms
SUBSTITUTES (Threat of Alternative products or Services)
BUYERS (Bargaining Power Of Buyers)
“Major Threat”
“Minor Threat”
Consumer Analysis
Three services provided by Wipro:
– IT Services System Integration, Manage IT- Data Centre – Product Design – Solutions Business Applications, Maintenance, Banking, Telecom, Manufacturing and Govt Domain Solutions
Across Domains
• • • • • • • Banking and diversified financial services Securities and Capital markets Insurance Healthcare Telecommunication Government organizations Other software companies
Clients
Enterprise
Finance
IT & ITES
Telecom
Government
Consumer Behaviour
WHAT • Benefits do the customer seek • Factors influence demand • Functions are provided by the product/service to the customer • Are the important buying criteria • Kind of product support services do the customers expect (postsales) HOW • Do the customers buy? • Long does the buying process last? • Much are they willing to pay? • Do the customers use the product? • Does the product/service fit into the operations? WHERE • Is the decision made? • Do customers seek information about the product? • Do customers buy the product? WHEN • Is the first decision to buy made? • Is the product repurchased? WHY • Do customers buy? • Do customers buy Wipro?
Alternatives
Do Nothing: Product development according to market demands
Pros
High Brand Visibility
Cons
No Product Differentiation
Increasing Competition
Existing Strategy
Increasing Competition
Alternatives (Contd..)
Gather volumes of business
Pros
Very Low Risk Business
Cons
Lower Profits
High Volumes
Increasing Competition
Alternatives (Contd..)
Offer IT consulting to its clients along with the present products
Pros
Movement Up the Value Chain
Cons
Very High Level of Expertise Required Brand Image of a IT Services Company Huge Risks
Huge Growth Opportunities
Alternatives (Contd..)
Dynamic High Technology Strategy
Concentrate on R&D & Innovation: Use as the competitive advantage
Pros
R&D as a competitive advantage
Better Profitability
Cons
Huge Investments required
Close Relationships with Clients
Risks involved w.r.t. Customers backing out from Partnerships
Recommendations
Adopt the Dynamic High Technology Strategy
• Increase Global Presence • More collaborations with other players; reduce dependence on only few players • Leveraging the huge investments in R&D to gain competitive advantage with respect to other players • Diversify into various Sectors • Go for quality certification
Recommendations (Contd..)
PRODUCT
Concentration on R&D would enable to provide superior Products
PROMOTION Focused On Research: Would Differentiate Wipro from Competition
PRICE
4P’s
Because of Product Diff. higher prices can be charged to customers
PLACE
Cater to growing Markets as well as concentrate on the existing markets
Conclusions
• Till today Wipro has been known for being very process oriented with a focus on quality and cost savings. • Wipro long term strategy should be to create a brand image and be known for innovation. • Wipro should invest in R&D and Market research, so that It is able to innovate new solutions for clients to cut costs or reduce time to market or improve reliability.
Conclusions (Contd..)
• Wipro should now compete not only on how well they do something, but how innovative they are and how well they can quantify those benefits for customers.
Thank You!!!
doc_638297443.ppt
The PPT is describes about Global Marketing in Wipro infotech.
GLOBAL MARKETING IN WIPRO INFOTECH: A STRATEGIC PERSPECTIVE
Case Introduction
• Wipro is amongst the major players in Indian IT industry • Booming IT industry in India; India being recognized as the global centre for research and development • Emergence of New Economic Policy (NEP) triggered liberalization and provided major impetus to international business • lot of growth opportunity in IT sector in India leading to intensive competition in the domestic market • Companies forced to the export route to survive in the market
Issues
• • • • Lack of a planned strategy for going global Not a proactive player Increased competition by the new entrants Collaborations of other domestic companies with MNCs
Key Issue
• To formulate a strategy for international markets to cope with intense competition
SWOT Analysis
Strengths •Skilled manpower •Multi domestic market philosophy •Research and Development •Low cost advantage Weaknesses •Not a proactive company •Small player in global market •Limited domain •Clients not trusting the capabilities of Indian Software Cos. Threats
Opportunities
•Huge global market •Huge potential in domestic market •Y2K Crisis
•Competition by Indian companies in domestic market •Presence of big companies in global market •Exchange rate
Strengths
• Skilled manpower Diversified skill base across service lines delivery capabilities & client satisfaction • Multi domestic market philosophy Commitment to go the extra mile • Research and Development Technological partnership with other software companies • Low cost advantage Ability to continually reduce the cost of services
Weakness
• Not a proactive company Domestic market was huge but was underdeveloped • Small player in global market No exposure to standard work • Limited domain Wipro provided very limited number of services. Also Standard international quality practices like Six Sigma and CMMI are not in place
• Clients not trusting the capabilities of Indian Software Cos.
Opportunities
• Huge global market The Company has entered into the global market so now it’s the biggest opportunity available to the company. • Huge Potential in Domestic Market • Y2K Crisis
Threats
• Competition by Indian companies in domestic market • Presence of big companies in global market • Exchange rate This can be a threat to the company as the company is making profits due to the high exchange rate and if this rate comes down in future it can lead to a major problem for the company.
PEST Analysis
Political Factors Economic Factors
• Liberalization • Support of Government policies towards free trade
• Increased foreign investment • Change in policies • Exchange rate
Social Factors • Immense intellectual Capital
Technological Factors • Easy access to various business clients • Comfort to global customers and suppliers
Political Factors
• Liberalization New Economic Policy (NEP) introduced in the country helped the company to excel in the global market, providing variety of benefits. • Support of Government policies towards free trade Export incentives and duty concessions, which showed the company a new opportunity abroad.
Economic Factors
• Increased foreign investment The increased foreign investments in software technology parks ensured growth in further coming years. • Change in policies Many economic policies changes in the country helped Wipro in their growth. At that time the new policies were going in favour of the whole software industry. • Exchange rate High exchange rate helped the Company to take an advantage over other global players which actually allowed it provide products and services at lower costs.
Social Factors
• Immense intellectual Capital
Technological Factors
• Easy access to various business clients • Comfort to global customers and suppliers Due to improvement in the technology access to the business became easy to other business partners including various suppliers and customers
Other Advantages
• Investment in Research and development Wipro invested in research and development very early, this early investment helped it to grow faster and thus it took an advantage over other domestic competitors.
Competitor Analysis
POTENTIAL ENTRANTS
“Major Threat”
Industry Competitors
SUPPLIERS (Bargaining power of Suppliers)
“Minor Threat”
Rivalry Among Firms
SUBSTITUTES (Threat of Alternative products or Services)
BUYERS (Bargaining Power Of Buyers)
“Major Threat”
“Minor Threat”
Consumer Analysis
Three services provided by Wipro:
– IT Services System Integration, Manage IT- Data Centre – Product Design – Solutions Business Applications, Maintenance, Banking, Telecom, Manufacturing and Govt Domain Solutions
Across Domains
• • • • • • • Banking and diversified financial services Securities and Capital markets Insurance Healthcare Telecommunication Government organizations Other software companies
Clients
Enterprise
Finance
IT & ITES
Telecom
Government
Consumer Behaviour
WHAT • Benefits do the customer seek • Factors influence demand • Functions are provided by the product/service to the customer • Are the important buying criteria • Kind of product support services do the customers expect (postsales) HOW • Do the customers buy? • Long does the buying process last? • Much are they willing to pay? • Do the customers use the product? • Does the product/service fit into the operations? WHERE • Is the decision made? • Do customers seek information about the product? • Do customers buy the product? WHEN • Is the first decision to buy made? • Is the product repurchased? WHY • Do customers buy? • Do customers buy Wipro?
Alternatives
Do Nothing: Product development according to market demands
Pros
High Brand Visibility
Cons
No Product Differentiation
Increasing Competition
Existing Strategy
Increasing Competition
Alternatives (Contd..)
Gather volumes of business
Pros
Very Low Risk Business
Cons
Lower Profits
High Volumes
Increasing Competition
Alternatives (Contd..)
Offer IT consulting to its clients along with the present products
Pros
Movement Up the Value Chain
Cons
Very High Level of Expertise Required Brand Image of a IT Services Company Huge Risks
Huge Growth Opportunities
Alternatives (Contd..)
Dynamic High Technology Strategy
Concentrate on R&D & Innovation: Use as the competitive advantage
Pros
R&D as a competitive advantage
Better Profitability
Cons
Huge Investments required
Close Relationships with Clients
Risks involved w.r.t. Customers backing out from Partnerships
Recommendations
Adopt the Dynamic High Technology Strategy
• Increase Global Presence • More collaborations with other players; reduce dependence on only few players • Leveraging the huge investments in R&D to gain competitive advantage with respect to other players • Diversify into various Sectors • Go for quality certification
Recommendations (Contd..)
PRODUCT
Concentration on R&D would enable to provide superior Products
PROMOTION Focused On Research: Would Differentiate Wipro from Competition
PRICE
4P’s
Because of Product Diff. higher prices can be charged to customers
PLACE
Cater to growing Markets as well as concentrate on the existing markets
Conclusions
• Till today Wipro has been known for being very process oriented with a focus on quality and cost savings. • Wipro long term strategy should be to create a brand image and be known for innovation. • Wipro should invest in R&D and Market research, so that It is able to innovate new solutions for clients to cut costs or reduce time to market or improve reliability.
Conclusions (Contd..)
• Wipro should now compete not only on how well they do something, but how innovative they are and how well they can quantify those benefits for customers.
Thank You!!!
doc_638297443.ppt