Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version
Shortly after Infosys was founded in 1981, its managers faced a major turning point when they made a decision to operate without giving in to the petty corruption rife in the Indian economy. Within just a few years, that decision had truly defined the company. Over the next 25 years, Infosys managers went to extraordinary lengths to avoid even the most modest of practices that they considered inappropriate. Explores the practices and methods that Infosys adopted instead, considers their costs, benefits, and generalizability, and contextualizes the problem within Indian political and economic institutions that continue to evolve.
Authors :: Rawi Abdelal, Rafael Di Tella, Prabakar Kothandaraman
Swot Analysis of "Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version" written by Rawi Abdelal, Rafael Di Tella, Prabakar Kothandaraman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Infosys Contextualizes facing as an external strategic factors. Some of the topics covered in Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version case study are - Strategic Management Strategies, Entrepreneurship, Ethics, Globalization, Government, Technology and Global Business.
Some of the macro environment factors that can be used to understand the Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version casestudy better are - – talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, technology disruption, increasing transportation and logistics costs, wage bills are increasing,
there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Infosys Contextualizes, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Infosys Contextualizes operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version case study
2. Improving business portfolio management of Infosys Contextualizes
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Infosys Contextualizes
Strengths Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Infosys Contextualizes in Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version Harvard Business Review case study are -
Training and development
– Infosys Contextualizes has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Infosys Contextualizes digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Infosys Contextualizes has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to lead change in Global Business field
– Infosys Contextualizes is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Infosys Contextualizes in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Infosys Contextualizes in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Infosys Contextualizes has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Strong track record of project management
– Infosys Contextualizes is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Infosys Contextualizes
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Infosys Contextualizes does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Infosys Contextualizes has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Infosys Contextualizes is one of the leading recruiters in the industry. Managers in the Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Infosys Contextualizes is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Infosys Contextualizes is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Infosys Contextualizes has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Infosys Contextualizes has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Operational resilience
– The operational resilience strategy in the Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Weaknesses Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version are -
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Infosys Contextualizes supply chain. Even after few cautionary changes mentioned in the HBR case study - Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Infosys Contextualizes vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Rawi Abdelal, Rafael Di Tella, Prabakar Kothandaraman suggests that, Infosys Contextualizes is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Interest costs
– Compare to the competition, Infosys Contextualizes has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version, is just above the industry average. Infosys Contextualizes needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Capital Spending Reduction
– Even during the low interest decade, Infosys Contextualizes has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Products dominated business model
– Even though Infosys Contextualizes has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Infosys Contextualizes has relatively successful track record of launching new products.
High cash cycle compare to competitors
Infosys Contextualizes has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
No frontier risks strategy
– After analyzing the HBR case study Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Need for greater diversity
– Infosys Contextualizes has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Infosys Contextualizes is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Infosys Contextualizes in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Buying journey improvements
– Infosys Contextualizes can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Infosys Contextualizes can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Infosys Contextualizes can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Infosys Contextualizes to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Infosys Contextualizes to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Infosys Contextualizes can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Manufacturing automation
– Infosys Contextualizes can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Low interest rates
– Even though inflation is raising its head in most developed economies, Infosys Contextualizes can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Infosys Contextualizes is facing challenges because of the dominance of functional experts in the organization. Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Infosys Contextualizes to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Creating value in data economy
– The success of analytics program of Infosys Contextualizes has opened avenues for new revenue streams for the organization in the industry. This can help Infosys Contextualizes to build a more holistic ecosystem as suggested in the Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version case study. Infosys Contextualizes can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Infosys Contextualizes in the consumer business. Now Infosys Contextualizes can target international markets with far fewer capital restrictions requirements than the existing system.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Infosys Contextualizes can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version are -
Environmental challenges
– Infosys Contextualizes needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Infosys Contextualizes can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Infosys Contextualizes business can come under increasing regulations regarding data privacy, data security, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Stagnating economy with rate increase
– Infosys Contextualizes can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Infosys Contextualizes in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Technology acceleration in Forth Industrial Revolution
– Infosys Contextualizes has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Infosys Contextualizes needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing wage structure of Infosys Contextualizes
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Infosys Contextualizes.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Infosys Contextualizes.
Regulatory challenges
– Infosys Contextualizes needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Infosys Contextualizes can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version, Infosys Contextualizes may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Infosys Contextualizes needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Infosys Contextualizes can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version .
Weighted SWOT Analysis of Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Infosys in India: Building a Software Giant in a Corrupt Environment, Spanish Version is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Infosys Contextualizes needs to make to build a sustainable competitive advantage.
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