BUSINESS STRATEGY OF INFOSYS

7/28/2019 BUSINESS STRATEGY OF INFOSYS

1/24

Business Strategy I

Industry - IT

Learning Group 13 (PGPM 11A)

Abhisek Das (010111049)

Sayon Biswas (010111006)

Proma Sengupta (010111035)


2/24

IT Industry in India

Industry Overview

No existence before 1960.

In 1972, realization of potential earning of foreignexchange.

In 1990, Department of Electronics (DoE) introducedthe concept of Software Technology Park (STPs)in India.

In 1991, significant growth in R&D of Indian IT sectorafter that India became a IT hub for global IT marketwithin 10 years.

HP, Microsoft, Motorola and Siemens establishedresearch centers in Bangalore.


3/24

Industry Overview (Contd.)

After 2008 Subprime Crisis Indian IT industry

faced boom due to.

Due to sluggish GDP growth and consequentreduction in IT spending, countries / markets

started depending on the export markets.

Indian IT Industry registers a landmark of US $50 billion exports in 2012 according to

NASCOM. Its potential size is estimated at US $

120 to 180 billion by 2015.



4/24



5/24



6/24

Porters 5 Forces for IT Industry of India



7/24

Vision

We will be a globally respectedcorporation

Mission

Strategic Partnerships for BuildingTomorrowsEnterprise

Values

The values that drive us underscore our commitment to

C L I F E Client Value

Leadership by Example

Integrity and Transparency

Fairness

Excellence


8/24

Company Background

Started in 1981 with US $ 250. Named Infosys

Consultants Private Ltd. Mainly engaged in softwaredevelopment.

In 1992 name changed to Infosys Tech. Pvt. Ltd.

In 1993 company got ISO 9000 certification andissued shares in the market.

In 1999 Infosys Tech. became the 1st Indianregistered company to be listed in NASDAQ.


9/24

Company Background (Contd.)

In 2004 Infosys, Microsoft and Intel join hands toprovide Next Generation e-Banking solutions tobanks in Philippines.

In 2010 Infosys crosses the US$ 5 billion revenuemark. Infosys among the world's 20 best companiesfor leadership.

In 2011 Finacle Solution from Infosys Wins Leadersin Innovation Award 2010.

In 2012 Mr. N. R. Narayana Murthy hands overchairmanship to Mr. K V Kamath. Infosys crosses

US$ 6 billion revenue mark.


10/24

Infosys Activedesk

Infosys iPower

Infosys mConnect

Collaborative

Analytics

IT Services

Engineering Services

Consulting Services

BPO ServicesFinacle Solution

Services

Products

Services


11/24

Customers


12/24

BCG Matrix for Indian Market


13/24

BCG Matrix for USA Market


14/24

Indian IT Industry Market Share

CompanyRevenue FY

2011 (in Cr.)

Market

Share

TCS 37,325.00 24.90

Infosys 27,501.00 18.30

Wipro 23,606.00 15.70

Cognizant 20,655.00 13.80

HCL Tech. 15,730.00 10.50

Mahindra

Satyam5,145.00 3.40

Tech Mahindra 5,140.00 3.40

Mphasis Ltd. 5,037.00 3.40

iGatePatni 4,403.00 2.90

Others 9,546.00 6.40

25%

18%

16%

14%

10%

3%

3%3%

3%

5%


15/24

GlobalCompetitors


16/24

SWOT Analysis

Strengths :

I. Global Delivery Model

II. Brand & Client Relationship

Weaknesses :

I. Dependence on USA market

II. Low R&D spending


17/24

SWOT Analysis

Opportunities :

I. Domestic Market growth

II. High cash reserve

Threats:

I. Pricing Pressure

II. Currency Fluctuation


18/24

Marketing Strategy


19/24

15,648.00

20,264.00

21,140.00

25,385.00

31,254.00

4,465.00

6,191.00

5,707.00

6,404.00

7,905.00

0.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00 35,000.00

MAR08

MAR09

MAR10

MAR11

MAR12

Net Sales & Profit Growth of Infosys(Rs. In Cr.)

Profit / Loss Net Sales


20/24

4,465.00

6,191.005,707.00

6,404.00

7,905.00

MAR08 MAR09 MAR10 MAR11 MAR12

Profit Gap Analysis of Infosys(Rs. In Cr.)

Profit / Loss


21/24

Market Capitalizations

(Rs. in Cr.)


22/24

Conclusions

Infosys was awarded the No. 1 in the best managed

company (Asia Pacific) as per the Euromoney Best

Managed Companies in Asia Survey, 2013.

Infosys was started with USD $ 250 only but now

they have total asset ofUSD $ 7,537million.

Infosys is now in 2nd position as per market share of

Indian IT industry.


23/24

Suggestions

Infosys should try to concentrate on domestic market

as because India is a growing market in IT.

Infosys should increase their R&D budget.


24/24

Thank You

Documents

BUSINESS STRATEGY OF INFOSYS