Strategy Analysis TCS

Strategic Management Presentation

TATA Consultancy Services (TCS)

7 April 2023 Group J

• Company Direction & Growth• Strategy (Cost / Price Strategy)• Implementation of strategy and Operations• 6S’s• Key Growth Factors• Key Cost Drivers• Stakeholders and their Alignment• Stakeholder focus• Revenue Strategy imperatives on Marketing Mix• Competition• Porters Model• Ansoff’s Model• Understanding & Conclusion• Appendix

Presentation Structure


Tata Consultancy Services has been the pioneer in the IT industry. The company is aggressively pursuing its expansion plans. Some key aspects are as follows,

• Opportunities – US sub prime crisis, Emergence of Latin American markets

• Threats – Emergence of Philippines / Singapore as an offshore market, continual growth of china

• Investments – Strategic Acquisitions, Technology, Near Shore locations

• Activities – • Talent acquisition – building global teams, company acquisitions, etc• Asset creation – in-house development and acquisitions• External communication – positioning as a global company and

demonstrate certainty• Internal communication – to be global top 10 by 2010

• Year on Year Growth for the past 2 years (NPAT) is 42%

Company Direction & Growth


• The company is growing through differentiated services which involves the following,

– Full Services Play

– Innovation

– Global Network Delivery Model

– Strategic Acquisitions

Strategy


• The company is considering the changing market dynamics.

– Realignment in the Sales Structure

– Realignment of Industry Service Units

– The Go-To-Market Strategy has been changed

– Centers of Excellence

– Increase in the number of R&D labs

– Extended capability / infrastructure to deliver large projects off the near shore development centers

Implementation of Strategy & Operations


Skill : Technology adoption, end to end services and Acquisitions

Structure : Industry alignment

Staff : Multilingual and High Skill HR

System / Processes : CMM level 5

Style : Business advisor (Complete solution Consultant)

Share Values : Integrity and respect for individual

6 S’s


• Strategic Acquisitions such as Airline Financial Services, Financial Network Services, etc

• Suite of Products in Banking & Financial Services Space

• Increased growth of some Industry units such as Travel & Hospitality, BPO, etc

• Innovation Focus

Key Growth Factors


• Acquisitions

• R & D expenses

• Recruitment, Training and Development

Key Cost Drivers


• Customers– Co Innovation– Long Term Relationship– Certifications

• Employees– Learning & Development focus– Centers of Excellence– Certification Programmes

• Community /Society– TCS “Maitree”, internal community of employees and their

families has conducted awareness sessions on,• HIV/AIDS• Right to Information Act• Environment Awareness

TCS : Other Communities


• Geography– UK : Helping the underprivileged through sponsorship and

teaching– US : Construction of Habitat through Humanity houses– India : Govt of AP for Adult Literacy Programmes

• Industry Associations and initiatives,– NASSCOM : to cover more than 600,000 Indian villages for

education– UN : To create awareness and funds to fight against child

hunger

• Government– Close association with AP Government for online initiatives

TCS : Other Communities


• The revenue target for the company is to grow to USD 10 bil by 2010

• This implicates the following,

– Global brand building

– Positioning as an end to end service provider

– Positioning as Business Advisors and not functional experts

Strategy Imperatives in Marketing Mix


• Key Competitors– Accenture– Cognizant– IBM– Infosys

• Key Strategies for– IBM

• Increased expansion in India and more development centers• Focus on Large outsourcing deals

– Accenture• Large deals• Leverage cost advantage in developing countries

– Cognizant• Focus on new industry segments such as Media & Entertainment• New Geographies

Competition


Porter’s Model

Very Strong Competition (2)Accenture (stronger)

CTS,IBM (Equal)

Moderate Suppliers (3)Hardware,

Technology and Human Resource)

Strong Buyers (2)Corporate

Easy New Entrant Entry (5)3I, Mastek ,Syntel

No substitutes in market (5)

Overall an attractive market


Ansoff Grid

New Market

New Product Old Product

(Existing)

Market Penetratio

n

Product Development

Market Developmen

t

(TCS)

Market Diversificati

on

Old Market

(Existing)


Cont….

1. Existing services to new market

2. Market development strategy

3. Tapping bigger accounts

4. Larger Distribution

5. Looking for new markets


Understanding & Conclusion

• TCS is growing at a fast pace in India and global markets; its key strategies for growth are

– Strategic Acquisitions

– Global Network & Full Service Play

– Innovation

– Incessant improvement & development

– Comprehending client’s requirement

Thank You

Appendix


Growth

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TCS Revenue by Geo

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R&D Initiatives

• Tata Research Development And Design Centre, Pune

• Advanced Technology Centre, Hyderabad

• Business Systems & Cybernetics Centre, Hyderababd

• Embedded Systems R&D

• TCS Technology Innovation Lab

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Documents

Strategy Analysis TCS