Description
The ppt is about of strategy analysis of TCS.
Strategic Management Presentation
TATA Consultancy Services (TCS)
Presentation Structure
• • • • • • • • • • • • • •
Company Direction & Growth Strategy (Cost / Price Strategy) Implementation of strategy and Operations 6S’s Key Growth Factors Key Cost Drivers Stakeholders and their Alignment Stakeholder focus Revenue Strategy imperatives on Marketing Mix Competition Porters Model Ansoff’s Model Understanding & Conclusion Appendix
25 January 2013
Group J
Company Direction & Growth
Tata Consultancy Services has been the pioneer in the IT industry. The company is aggressively pursuing its expansion plans. Some key aspects are as follows, • Opportunities – US sub prime crisis, Emergence of Latin American markets • Threats – Emergence of Philippines / Singapore as an offshore market, continual growth of china • Investments – Strategic Acquisitions, Technology, Near Shore locations • Activities – • Talent acquisition – building global teams, company acquisitions, etc • Asset creation – in-house development and acquisitions • External communication – positioning as a global company and demonstrate certainty • Internal communication – to be global top 10 by 2010 • Year on Year Growth for the past 2 years (NPAT) is 42%
25 January 2013 Group J
Strategy
• The company is growing through differentiated services which involves the following, – Full Services Play – Innovation – Global Network Delivery Model – Strategic Acquisitions
25 January 2013
Group J
Implementation of Strategy & Operations
• The company is considering the changing market dynamics. – Realignment in the Sales Structure – Realignment of Industry Service Units – The Go-To-Market Strategy has been changed – Centers of Excellence – Increase in the number of R&D labs – Extended capability / infrastructure to deliver large projects off the near shore development centers
25 January 2013
Group J
6 S’s
Skill : Technology adoption, end to end services and Acquisitions Structure : Industry alignment Staff : Multilingual and High Skill HR
System / Processes : CMM level 5 Style : Business advisor (Complete solution Consultant) Share Values : Integrity and respect for individual
25 January 2013
Group J
Key Growth Factors
• Strategic Acquisitions such as Airline Financial Services, Financial Network Services, etc • Suite of Products in Banking & Financial Services Space • Increased growth of some Industry units such as Travel & Hospitality, BPO, etc • Innovation Focus
25 January 2013
Group J
Key Cost Drivers
• Acquisitions • R & D expenses • Recruitment, Training and Development
25 January 2013
Group J
TCS : Other Communities
• Customers – Co Innovation – Long Term Relationship – Certifications • Employees – Learning & Development focus – Centers of Excellence – Certification Programmes • Community /Society – TCS “Maitree”, internal community of employees and their families has conducted awareness sessions on,
• HIV/AIDS • Right to Information Act • Environment Awareness
25 January 2013
Group J
TCS : Other Communities
• Geography – UK : Helping the underprivileged through sponsorship and teaching – US : Construction of Habitat through Humanity houses – India : Govt of AP for Adult Literacy Programmes • Industry Associations and initiatives, – NASSCOM : to cover more than 600,000 Indian villages for education – UN : To create awareness and funds to fight against child hunger • Government – Close association with AP Government for online initiatives
25 January 2013
Group J
Strategy Imperatives in Marketing Mix
• The revenue target for the company is to grow to USD 10 bil by 2010 • This implicates the following, – Global brand building – Positioning as an end to end service provider – Positioning as Business Advisors and not functional experts
25 January 2013
Group J
Competition
• Key Competitors
– – – – Accenture Cognizant IBM Infosys
• Key Strategies for – IBM
• Increased expansion in India and more development centers • Focus on Large outsourcing deals
– Accenture
• Large deals • Leverage cost advantage in developing countries
– Cognizant
• Focus on new industry segments such as Media & Entertainment • New Geographies
25 January 2013 Group J
Porter’s Model
Easy New Entrant Entry (5) 3I, Mastek ,Syntel
Moderate Suppliers (3) Very Strong Competition (2) Hardware, Strong Buyers (2) Accenture (stronger) Technology and Corporate CTS,IBM (Equal) Human Resource)
No substitutes in market (5)
Overall an attractive market
25 January 2013 Group J
Ansoff Grid
New Market
Market Diversification
Market Development (TCS)
Old Market (Existing)
Product Development
Market Penetration
New Product
Old Product (Existing)
25 January 2013
Group J
Cont….
1. Existing services to new market 2. Market development strategy 3. Tapping bigger accounts 4. Larger Distribution 5. Looking for new markets
25 January 2013
Group J
Understanding & Conclusion
• TCS is growing at a fast pace in India and global markets; its key strategies for growth are
– – – – – Strategic Acquisitions Global Network & Full Service Play Innovation Incessant improvement & development Comprehending client’s requirement
25 January 2013
Group J
Thank You
Appendix
Growth
25 January 2013
Group J
Back
TCS Revenue by Geo
25 January 2013
Group J
Back
R&D Initiatives
• Tata Research Development And Design Centre, Pune • Advanced Technology Centre, Hyderabad • Business Systems & Cybernetics Centre, Hyderababd • Embedded Systems R&D • TCS Technology Innovation Lab
25 January 2013
Group J
Back
doc_815575143.ppt
The ppt is about of strategy analysis of TCS.
Strategic Management Presentation
TATA Consultancy Services (TCS)
Presentation Structure
• • • • • • • • • • • • • •
Company Direction & Growth Strategy (Cost / Price Strategy) Implementation of strategy and Operations 6S’s Key Growth Factors Key Cost Drivers Stakeholders and their Alignment Stakeholder focus Revenue Strategy imperatives on Marketing Mix Competition Porters Model Ansoff’s Model Understanding & Conclusion Appendix
25 January 2013
Group J
Company Direction & Growth
Tata Consultancy Services has been the pioneer in the IT industry. The company is aggressively pursuing its expansion plans. Some key aspects are as follows, • Opportunities – US sub prime crisis, Emergence of Latin American markets • Threats – Emergence of Philippines / Singapore as an offshore market, continual growth of china • Investments – Strategic Acquisitions, Technology, Near Shore locations • Activities – • Talent acquisition – building global teams, company acquisitions, etc • Asset creation – in-house development and acquisitions • External communication – positioning as a global company and demonstrate certainty • Internal communication – to be global top 10 by 2010 • Year on Year Growth for the past 2 years (NPAT) is 42%
25 January 2013 Group J
Strategy
• The company is growing through differentiated services which involves the following, – Full Services Play – Innovation – Global Network Delivery Model – Strategic Acquisitions
25 January 2013
Group J
Implementation of Strategy & Operations
• The company is considering the changing market dynamics. – Realignment in the Sales Structure – Realignment of Industry Service Units – The Go-To-Market Strategy has been changed – Centers of Excellence – Increase in the number of R&D labs – Extended capability / infrastructure to deliver large projects off the near shore development centers
25 January 2013
Group J
6 S’s
Skill : Technology adoption, end to end services and Acquisitions Structure : Industry alignment Staff : Multilingual and High Skill HR
System / Processes : CMM level 5 Style : Business advisor (Complete solution Consultant) Share Values : Integrity and respect for individual
25 January 2013
Group J
Key Growth Factors
• Strategic Acquisitions such as Airline Financial Services, Financial Network Services, etc • Suite of Products in Banking & Financial Services Space • Increased growth of some Industry units such as Travel & Hospitality, BPO, etc • Innovation Focus
25 January 2013
Group J
Key Cost Drivers
• Acquisitions • R & D expenses • Recruitment, Training and Development
25 January 2013
Group J
TCS : Other Communities
• Customers – Co Innovation – Long Term Relationship – Certifications • Employees – Learning & Development focus – Centers of Excellence – Certification Programmes • Community /Society – TCS “Maitree”, internal community of employees and their families has conducted awareness sessions on,
• HIV/AIDS • Right to Information Act • Environment Awareness
25 January 2013
Group J
TCS : Other Communities
• Geography – UK : Helping the underprivileged through sponsorship and teaching – US : Construction of Habitat through Humanity houses – India : Govt of AP for Adult Literacy Programmes • Industry Associations and initiatives, – NASSCOM : to cover more than 600,000 Indian villages for education – UN : To create awareness and funds to fight against child hunger • Government – Close association with AP Government for online initiatives
25 January 2013
Group J
Strategy Imperatives in Marketing Mix
• The revenue target for the company is to grow to USD 10 bil by 2010 • This implicates the following, – Global brand building – Positioning as an end to end service provider – Positioning as Business Advisors and not functional experts
25 January 2013
Group J
Competition
• Key Competitors
– – – – Accenture Cognizant IBM Infosys
• Key Strategies for – IBM
• Increased expansion in India and more development centers • Focus on Large outsourcing deals
– Accenture
• Large deals • Leverage cost advantage in developing countries
– Cognizant
• Focus on new industry segments such as Media & Entertainment • New Geographies
25 January 2013 Group J
Porter’s Model
Easy New Entrant Entry (5) 3I, Mastek ,Syntel
Moderate Suppliers (3) Very Strong Competition (2) Hardware, Strong Buyers (2) Accenture (stronger) Technology and Corporate CTS,IBM (Equal) Human Resource)
No substitutes in market (5)
Overall an attractive market
25 January 2013 Group J
Ansoff Grid
New Market
Market Diversification
Market Development (TCS)
Old Market (Existing)
Product Development
Market Penetration
New Product
Old Product (Existing)
25 January 2013
Group J
Cont….
1. Existing services to new market 2. Market development strategy 3. Tapping bigger accounts 4. Larger Distribution 5. Looking for new markets
25 January 2013
Group J
Understanding & Conclusion
• TCS is growing at a fast pace in India and global markets; its key strategies for growth are
– – – – – Strategic Acquisitions Global Network & Full Service Play Innovation Incessant improvement & development Comprehending client’s requirement
25 January 2013
Group J
Thank You
Appendix
Growth
25 January 2013
Group J
Back
TCS Revenue by Geo
25 January 2013
Group J
Back
R&D Initiatives
• Tata Research Development And Design Centre, Pune • Advanced Technology Centre, Hyderabad • Business Systems & Cybernetics Centre, Hyderababd • Embedded Systems R&D • TCS Technology Innovation Lab
25 January 2013
Group J
Back
doc_815575143.ppt