Tata Consultancy Services: Selling Certainty Harvard Case Solution & Analysis

Tata Consultancy Services: Selling Certainty Case Solution 

Problem Statement

TCS is a consultant firm that provides different kind of IT related services.The values developed by TCS played a vital role for being an international giant. However, major contribution to its success was the differentiation which it created for TCS’ customers.

TCS has faceted towards international rival’s growth in the country. Many local companies intended and secured with the pursuance of international rival’s in the home market. However, Tata needs to build strategies and itstimely implementation in order to uphold its name.

 External analysis

TCS involves following industrial forces that can provide what actions a company should take in order to survive and place its market.

Porter’s five forces

Bargaining power of buyer

TCS has grown with the development of the local and international market. However, innovations are the criteria of the industry that keep on changing. This is the reason why the bargaining power of buyer in IT industry remains high. Customers can easily switch as they find innovative approach of the competitor. Therefore, TCS has remained focused for improving its services that can help retain its customers.

Bargaining power of supplier

Evolving of the industry depends on the suppliers as well. There are number of suppliers that are onshore and offshore both in IT industry. TCS, similar to other companies has advantage of choosing among them. However, strategic alliance with the suppliers is the suitable path for the betterment of company. Therefore, it is expected that the bargaining power of suppliers is high in this case.

Rivalry

The IT industry of India has been developed. Infosys, Wipro and Cognizant Technology solutions are competing among TCS in India IT market, nonetheless international rivals IBM and Accenture also exist into the market. Due to having greater number of players in the same market, the threat of rivalry is high.

Threat of substitutes

There are numerous IT companies in the IT industry of India, which are innovating along with their competencies. Companies keep on advancing every day and grab clients’ attention towards them. The substitution is available in market by providing more services as TCS is providing other services along with consultancy for attracting its clients. Therefore, the threat of substitutes is expected to be moderate in this segment.

Threat of new entrants

Since the market of IT has been developed, therefore every company is striving to get on the top, innovations are at boom and the big names are still struggling to survive their competencies. In addition to this, the IT industry is a capital intensive industry therefore, it is difficult for a company to enter in the competition that means threat of new entrants is low inside the industry.

Internal analysis

SWOT analysis has been performed below to understand present efficiency of the TCS.

Strengths

  • Geography of TCS has remained an element of its success. It has expanded towards Europe, America and India’s different cities. It was TCS’s competency that it declared first IT Company for being wide in geographical expansion.
  • TCS has the advantage of multi business IT Company.
  • The ratioof hiring fresh people to experience is 60:40 that is an appropriate one.....................

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