SWOT ANALYSIS

RIDDHI GANATRA
ROLL No. – 12
Sy-bms
 What is SWOT analysis?
A scan of the internal and external environment is an
important part of the strategic planning process.
Environmental factors internal to the firm usually can be
classified as strengths (S) or weaknesses (W), and those
external to the firm can be classified as opportunities
(O) or threats (T). Such an analysis of the strategic
environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful
in matching the firm's resources and capabilities to the
competitive environment in which it operates. As such,
it is instrumental in strategy formulation and selection.
Infosys:
Infosys is one of the largest businesses in India with a
turnover in excess of $4 billion in 2008. The company
specializes in Information Technology (IT) and
consulting. N.R. Narayana Murthy and six others
started the company in 1981, and it is now the largest
IT company in India with its headquarters in
Bangalore (although it was started in Pune). It employs
more than 90,000 IT professionals and was famously
rated 'Best Employer in India.' It operates in a number
of business sectors from banking to retail, and its
services tend to encompass end-to-end IT solutions
which includes a whole bundle of added-value
solutions from infrastructure to software engineering.
Strengths:
•Since the company is based in India its competitive
advantage is enhanced. The Indian economy, despite weak
economic indicators such as relatively high rates of inflation,
has low labor costs. The workforce has relatively high skills
levels in Information Technology. Couple these two
elementstogether and you have an operational basis that
offers low-cost based, highly skilled competitive advantage.
Trained Indian personnel often speak very good English and
are sensitive to Western culture, underpinned by India's
colonial past.
•Infosys is in a strong financial position. The business turned
over more than $4 billion in 2008. This means that it has the
capital to expand, and also the basis to leverage potential
investors.
Opportunities:
•At a time of recession in the global economy, it may
appear that some companies will reduce take up of services
that Infosys offers. However, in tough times clients tend to
focus upon cost reduction and outsourcing - with are
strategies that Infosys offers. So hard times could be
profitable for Infosys.
•There is a new and emerging market in China as the
country undergoes a huge industrial revolution.
•The strategic alliance between Infosys and Schlumberger
gives the IT company access to lucrative business in the gas
and oil industries.
Weaknesses:
•Infosys on occasion struggles in the US markets, and has particular
problems in securing United States Federal Government contracts in
North America. Since these contracts are highly profitable and tend
to run for long periods of time, Infosys is missing out on lucrative
business. Added to this is the fact that its competitors do well in
terms of securing the same Federal business (and one should also
take into account that many of its competitors are domiciled in the
US and there could be political pressure on the US Government to
award contracts to domestic organizations).
•Despite being a huge IT company in relation to its Indian
competitors, Infosys is much smaller than its global competitors. As
discussed above, Infosys generated $4 billion in 2008, which is
relatively low in comparison with large global competitors such as
Hewlett-Packard ($91 billion), IBM ($91 billion), EDS ($21 billion) and
Accenture ($18 billion).
Threats:
•India is not the only country that is undergoing rapid industrial
expansion. Competitors may come from countries such as
China or Korea where there are large pools of low-cost labor,
and developing educational infrastructures such as universities
and technology colleges.
•Customers may switch to other offshore service companies in
other countries such as China or Korea.
•Other global players have realised that India has the benefit of
low-cost, highly-skilled labor that often speaks English and is
culturally sensitive to Western practices. As with all global IT
players, Infosys has to compete for skilled labor and this may
have the effect of driving up wage levels, and making it more
difficult to recruit and retain staff.
Vision and mission statements of
infosys:
Infosys' Vision is to be a globally respected corporation that provides best-of-
breed business solutions, leveraging technology, delivered by best-in-class
people.
Infosys Technologies (China) Company Ltd. will be the best-in-class provider
of business solutions to Global 2000 companies and large North Asian
corporations by leveraging the technology and talent base of China.

Infosys' Mission Statement is to achieve their objectives in an environment

of fairness, honesty, and courtesy towards their clients, employees, vendors
and society at large
We strive to be a source of pride to our employees and a partner of choice for
our clients.

Empowering Providers with Mission Critical information at the Point of

Decision through the delivery of integrated healthcare solutions based on the
latest Microsoft technologies.
Aims and objectives of infosys:

Infosys technologies ltd. defines ,designs and

delivers IT-enabled business solutions which aims at
providing strategic differentiation and operational
security to clients. With Infosys, clients are assured of
world class processes and the power to stretch their IT
budget by leveraging the global delivery model that
Infosys pioneered.
Thank You