Post on 16-Jan-2016
WIPRO : A STRATEGIC PERSPECTIVE
Submitted by:Patel Amisha
Patel MitaleePatel Nilesh
• Wipro started as a vegetable oil trading company in 1947, founded by Azim Premji's father.
• When his father died in 1966, Azim, a graduate in *Electrical Engineering from Stanford University, took on the leadership of the company at the age 21.
• Western India Products Ltd full form of WIPRO.
• Wipro Fluid Power to manufacture hydraulic and pneumatic cylinders in 1975.
• Wipro entered the information technology sector In 1979, Wipro began developing its own computers and in 1981
• In 1980 Wipro moved in software development and started developing customized software packages for their hardware customers
Business units
SWOT Analysis of WIPROStrengths Weaknesses
•Large Employee Base: (42000 as on 2005-06 with low attrition rate)•Large number of Bluechip Clients like Nortel, Compaq and Seagate•Operating profit margins at 32.3% lower than its peers.•Global partner with GM, Nike, JP Morgan, Franklin Templeton, ABN Amro, GM, Boeing and GE, and 300 others•Global delivery model: Market leader in Offshore, consulting and business process outsourcing business.•Global Diversified company with a strong R&D division twice as large as TCS and Infosys.
•Not a proactive company
•Small player in global market
•Limited domain
•Clients not trusting the capabilities of Indian Software Cos.
Opportunities Threats
•Huge global market
•Huge potential in domestic market.
It sector is boomingInnovations of latest Technologies
Competition by Indian companies in domestic market.
•Presence of big companies in global market.
•Exchange rate
PEST Analysis of WIPROPolitical Factors Economic Factors
• Liberalization• Support of Government policies towards free trade
• Increased foreign investment• Change in policies• Exchange rate
Social Factors Technological Factors
• Immense intellectual Capital • Easy access to various business clients• Comfort to global customers and suppliers
Competitor Analysis
Consumer AnalysisThree services provided by Wipro:
– IT ServicesSystem 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
Alternatives for WIPRO
Do Nothing: Product development according to market demands
Alternatives (Contd..)
Gather volumes of business
Alternatives (Contd..)
Offer IT consulting to its clients along with the present products
Alternatives (Contd..)
Concentrate on R&D & Innovation: Use as the competitive advantage
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..)
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.
• 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!!!