Tata Consultancy Services: Selling Certainty Harvard Case Solution & Analysis

Tata Consultancy Services: Selling Certainty Case Solution

Problem Statement

Tata consultancy services have sought to achieve $10 billion of revenue target in 2010, however there is intense competition in the local as well as in the international market. The company has to make certain considerations and by identifying its competitive advantage, it can pursue its target with an effective marketing strategy. The company has to analyze the competitive environment and make an overall global strategy to achieve its objective to be among the top-tier firms.

SWOT Analysis

Strengths

The company’s strength lies in its services and operations. It has been offering a wide range of services, which includes BPO, I.T infrastructure services and global consultancy and etc. Moreover, the operational activities are project based.

The company has high rate of growth and in the year 2007 it had41% growth rate in revenues with 22% in net income margin. The company with its quality services and global expansion is expected to have a progressive growth rate; this is also implied from the company’s goal to have growth up to $10 billion till 2010.

The company has pool of skillful and experienced workers.By analyzing the TCS workforce profile, it can be seen that the 56% of the workforce are engineers with 24% of Master degree holder. This shows that there aremany skillful laborspresent. Aside from 21% workforce with less than 1 year ofexperience, the rest of the workforce is more experienced and about 24% have experience of up to 10 years.

The company has a competitive position in the market and has reputable market standing. It is the largest I.T service provider company followed by Infosys Technologies and Wipro Technologies in India. TCS has 175 offices in 50 countries and is the first company which extended its business significantly to Europe and Latin America in a short span of time.

Weaknesses

One of the weaknesses that lies with in the company is that the company lacks effective marketing strategies,as compared to its competitor, Infosys technologies,which has gained more public attention through extensive marketing and has more visibility of its services than TCS.

Moreover, at offshore it has less market share due to some big companies present in the market such as IBM and etc.There was also negative perception about outsourcing among the U.S citizens, which led to loss of jobs for the locals.

Opportunities

There are many opportunities for the company to grow as the market is expanding both locally and globally. Currently, the global I.T industry is of $628 billion and it is expected to grow up to $875 billion at the end of 2010.

TCS has about 10% market share in India.The Indian market is expanding day by day and there are high chances to increase the market share by using an effective and appropriate strategy.

The company has been focused to secure contracts on large scale projects with contracts for fixed regular fee. This has resulted in steady growth and revenue however,there are more small scale opportunities with new small firms increasingly outsourcing their non-core activities. It is recommended that TCS should focus on these small scale contracts as well.

The healthcare industry has been becoming more technologically sophisticated and thus, this has increased its requirement for I.T services. The healthcare I.T service is contributing about 4.3% in the total revenue.In addition, with certain marketing and operational efforts, this contribution can be extended...........................

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