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Strategic Management Assignment No.

Course: …..PGCBM – 18

Name of the faculty: ….Prof Indrajit Mukherjee

Subject: …..Strategic Management

Submitted by(In case of individual) : Mr. Nitin Malhotra Roll No.:- 2217409

Name of center:- Aundh, Pune


Infosys- Corporate Level Strategy
»Global Delivery Model:
Producing where it is most cost effective and selling where it is most profitable.
»Moving UP the value chain:
Getting involved in a software development project at the earliest stage of the life
cycle.
»PSPD Model:
“Predictability of Revenues, sustainability of revenues, Profitability, De-Risking”
for Risk Management.

Actions Taken
» Expansion into low cost countries like Mauritius, Philippines, Thailand, Mexico etc.
» Improved Quality capabilities -> CMM Level 5i
» Emphasis on delivering high value services
» Currency hedging for predictability of revenues.
» Investing heavily in training centers.

Infosys – Generic Strategy

»Low cost Global delivery 24/7 Model

» Little differentiation in low-end services of value chain; high differentiation in high end services
in value chain like software products and package solutions.

»Focus on Quality, Customer relationship management, timely delivery

Infosys – Grand Strategies

Current Market New Market


Market Penetration Market Development
Current Product strategy Strategy
Product
Development
New Product Strategy Diversification strategy

Market Penetration strategy

»Current Markets: USA and Europe »Current Products: BPO, KPO, consultancy services (in
BFSI, manufacturing and retail) and software products (financial products).
»Recommendation: As most large clients in US and Europe are cutting costs, Infosys needs to
be more aggressive on cost and quality front.

»Result of strategy: Unlikely to yield good results

Market Development Strategy

»New Market: India, Middle-east and Australia »Current Product: ADM, BPO, KPO, consultancy
services (in BFSI, manufacturing and retail) and software products (financial products).

»Recommendation: Since these are fast developing IT market, Infosys needs a paradigm shift in
focus from US and EU markets to these markets.

»Result of strategy: Likely to yield good result

Product Development Strategy

»Current Market: USA and Europe

»New Product: Consultancy and package implementation services in relatively growing sectors
esp. healthcare, life sciences and aviation sector, and KPO services.

»Recommendation: Concentrate on building expertise in these domains by strategic


acquisitions.

»Result of Strategy: Likely to have good result. (better the company acquired, the better the
result)

Diversification strategy

»New Market: India, Middle-east and Australia

»New product: Consultancy and package implementation services in relatively growing sectors
esp. healthcare, life sciences and aviation sector, and KPO services.

»Recommendation: Changing Brand image from low value service provider to high value service
provider.

»Result of Strategy: Difficult to achieve overnight (possible in long term)

Other Strategies

»Concentration: 90% of Infosys revenues from American and European nations.


»Vertical Inetegration: Infosys recently made a bid to acquire a European major – Axon
consultancy to improve its business in European markets, but finally called off the deal due to
high valuation. Otherwise, Infosys has always believed in organic growth.

»Innovation: The Software Engineering and Technology Labs (SETLabs) at Infosys is the center
for applied technology research in software engineering and enterprise technology.
SETLabs conducted 24 Innovation Workshops with customers from the US and
Australia, to identify research collaboration possibilities. Infosys promotes a favorable
work environment that encourages innovation and meritocracy.

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