WIPRO : A STRATEGIC PERSPECTIVE

Submitted by:Patel Amisha

Patel MitaleePatel Nilesh

Mr.Azim Premji Chairman,wipro

• 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!!!