SWOT Analyis of Wipro | Business Teacher
Wipro SWOT Analysis
Continuous innovation: Wipro Technologies has an efficient research and development facility that meets the global standards. In this regard, it continues to create new goods and services that attract the attention of new customers as well as shareholders in the market. The company has been able to achieve great milestones in product development. It has a vast customer base. Having a large customer base across the world gives Wipro an upper hand to increase its revenue due to its strong brand image (Wipro Ltd., 2017). For example, over 90% of its revenue comes from repeat business (Sharma, 2011). Many businesses are in need of its software solutions, an implication that there is ever increasing demand for its services or products. Skilled employees: the HR practices at the company has made it easier for Wipro to remain its employees. For example, the recent changes in HR policies are suitable and sustainable for employees. The overall attrition rate has significantly improved over the last quarter. Economies of scale: the company also positions itself in the IT market as a low-cost provider. This strength has made the company to achieve a lot in terms of increased customer base. Economies of scale is allowed to clients who buy services or products in large scale. Customer satisfaction: this is made possible through quality product and delivery capabilities. Wipro Technologies gives quality a top most priority because it is committed to ensuring customer satisfaction (Sharma, 2011). As a result, the clients have registered their satisfaction with the company. Eco-friendly products: innovation is the order of the day at Wipro Technologies, and it has enabled the company to gain value propositions (Wipro Ltd., 2017). It advocates for reusable computer peripherals as well as less toxic material used in its production process.
Overdependence of mature markets: this poses a risk to the company because the domestic market is huge, yet it remains to be underdeveloped. Secondly, the company shies away from making a business investment (Sharma, 2011). For example, it does not encourage joint investment with the customer. Instead, it prefers executing the business given out by the client. Strong concentration on the process: Wipro Company is very much focused on the process and not the people (Wipro Ltd., 2017). As a result, delays have been common especially during decision-making process by the top management. Precarious top management: frequent changes in top management is one area that the company is doing badly (Wipro Ltd., 2016). For example, the managing director has to abide by Premji’s vision, and this gives rise to conflict in top management. Making changes in the top management disorients the operations of the middle and upper-level management.
Consultancy area: Wipro Consultancy is believed to be one of the best in the IT industry. The company is therefore in a position to achieve more especially with its large customer base (Wipro Ltd., 2017). Emerging technology: since it boasts of skilled employees, the latter can make good use of technologies to create new products or services that satisfy the varied needs of the consumers (Sharma, 2011). Huge global and potential domestic market: as a global company, Wipro can take advantage of global opportunities to increase its market share (Wipro Ltd., 2017). On the other hand, it has the capacity to capture to domestic Indian IT industry, another opportunity to expand.
The high cost of human capital: due to high attrition rate in the IT industry, recruiting people can be very costly. This can affect the profitability of the firm (Wipro Ltd., 2017). Stiff competition. The level of competition in the IT market is very high. As a result, firms will always compete for the buyers. It requires a unique differentiation strategy in order to penetrate the market (Sharma, 2011). Exchange rate: due to economic changes, exchange rates are affected either. For example, high exchange rates impact negatively on the firm’s profits and vice versa.