Mindtree
Mindtree
Introduction
Mindtree Ltd was an Indian multinational information technology services and consulting company,
headquartered in Bangalore. It is one of the Top Indian IT Companies. It is a part of the Larsen &
Toubro Group. Since its foundation in 1999, the company has employed over 38,518 employees.
MindTree was started in 1999 by a diverse team of 10 professionals who came from three different nations
Mindtree Values
No one has added Mindtree's values yet.
SWOT Analysis / Matrix of MindTree by EMBA PRO includes the four key elements - Strengths,
Weaknesses, Opportunities, & Threats. The strengths and weaknesses address the internal
factors of the company, opportunities and threats are the macro challenges that MindTree is
facing in India and other international markets that it operates in.
Opportunities Threats
Strengths Strength Opportunities (SO) Strategies Strength Threats (ST) Strategies
Opportunities Threats
and supply chain areas
Strengths of MindTree
Strengths are the firm's capabilities and resources that it can use to design, develop, and
sustain competitive advantage in the marketplace
- Wide geographic presence - MindTree has extensive dealer network and associates
network that not only help in delivering efficient services to the customers but also help
in managing competitive challenges in Computer Services industry.
- Track record of innovation - Even though most players in the Technology strive to
innovate, MindTree has successful record at consumer driven innovation.
- Success of new product mix - MindTree provides exhaustive product mix options to
its customers. It helps the company in catering to various customers segments in the
Computer Services industry.
- First mover advantage in the increasingly crowded market place. The new products
are rapidly increasing MindTree market share in the Computer Services industry.
Weaknesses of MindTree
- High turnover of employees at the lower levels is also a concern for the MindTree . It
can lead to higher salaries to maintain the talent within the firm.
- Extra cost of building new supply chain and logistics network - Internet and
Artificial Intelligence has significantly altered the business model in the Technology
industry and given the decreasing significance of the dealer network MindTree has to
build a new robust supply chain network. That can be extremely expensive.
- Low investments into MindTree's customer oriented services - This can lead to
competitors gaining advantage in near future. MindTree needs to increase investment
into research and development especially in customer services oriented applications.
- Gross Margins and Operating Margins which could be improved and going forward
may put pressure on the MindTree financial statement.
- Local Collaboration - Tie-up with local players can also provide opportunities of
growth for the MindTree in international markets. The local players have local expertise
while MindTree can bring global processes and execution expertise on table.
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- Lowering of the cost of new product launches through third party retail partners
and dedicated social network. MindTree can use the emerging trend to start small
before scaling up after initial success of a new product.
- Customer preferences are fast changing - Driven by rising disposable incomes, easy
access to information, and fast adoption of technological products, customers today are
more willing to experiment / try new products in the market. MindTree has to carefully
monitor not only wider trends within the Computer Services industry but also in the
wider Technology sector.
Theats to MindTree
- Shortage of skilled human resources - Given the high turnover of employees and
increasing dependence on innovative solution, companyname can face skilled human
resources challenges in the near future.
- Competitive pressures - As the new product launch cycles are reducing in the
Technology industry. It has put additional competitive pressures on players such as
MindTree. Given the large customer base, MindTree can't respond quickly to the needs
of the niche markets that disruptors are focusing on.
- Commoditization of the product segment - The biggest challenge for MindTree and
other players in the industry is the increasing commoditization of the products in
Technology industry.
- Saturation in urban market and stagnation in the rural markets - For MindTree this
trend is an ongoing challenge in the Computer Services segment. One of the reasons is
that the adoption of products is slow in rural market. Secondly it is more costly for
MindTree to serve the rural customers than urban customers given the vast distances
and lack of infrastructure.
Using SWOT analysis for Venture Feasibility, New Project Viability & New Product Launch
Project management and feasibility analysis have become more specialized. SWOT
analysis can still help decision makers at MindTree to work out the pros and cons of new
project, initial viability and long term scope keeping in the competitors’ strategy and
macro environment development.
broad then SWOT analysis won’t able to highlight internal factors and if the scope is
kept too narrow then managers can miss the macro environment opportunities and
threats.
Leaders at MindTree can also use SWOT analysis to understand how key strengths can
be extended either to adjacent areas or new industries all together.
Analyzing the macro trends from not only Technology industry perspective but from a
more holistic perspective. It will provide better clues regarding where customers are
going and what trends MindTree can leverage.
- Defining what skills are essential for the survival of the MindTree in Computer Services
industry.
- Are there people extremely critical to organization that can tilt the balance between
strengths and weaknesses of the company.
- Provide proper weightage to the various factors that drive MindTree topline and
bottomline growth.
How often should MindTree conduct SWOT analysis in Computer Services industry?
The frequency of conducting SWOT analysis in Technology sector depends upon the
objectives of the company and rate of change in the Technology sector and Computer
Services industry.
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What is the difference between SWOT Analysis and PESTEL Analysis of MindTree