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Mindtree

Mindtree is an Indian IT company headquartered in Bangalore with over 38,000 employees. Its mission is to engineer meaningful technology solutions to help businesses and societies flourish. A SWOT analysis identifies Mindtree's strengths as its margins, geographic presence, talent management, and innovation record. Weaknesses include high employee turnover and declining market share. Opportunities exist in increasing regulations, customer preferences, and technological advances. Threats are from skilled labor shortages, competitive pressures, and political instability. The SWOT analysis helps Mindtree develop strategies to leverage strengths and opportunities while mitigating weaknesses and threats.

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Shobhita Saxena
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0% found this document useful (0 votes)
102 views

Mindtree

Mindtree is an Indian IT company headquartered in Bangalore with over 38,000 employees. Its mission is to engineer meaningful technology solutions to help businesses and societies flourish. A SWOT analysis identifies Mindtree's strengths as its margins, geographic presence, talent management, and innovation record. Weaknesses include high employee turnover and declining market share. Opportunities exist in increasing regulations, customer preferences, and technological advances. Threats are from skilled labor shortages, competitive pressures, and political instability. The SWOT analysis helps Mindtree develop strategies to leverage strengths and opportunities while mitigating weaknesses and threats.

Uploaded by

Shobhita Saxena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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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 Mission, Vision & Values


Mindtree Mission Statement
We engineer meaningful technology solutions to help businesses and societies flourish.

Mindtree Vision Statement


Mindtree takes an agile, collaborative approach to create customized solutions across the digital value chain.

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.

MindTree SWOT Matrix / Weighted SWOT Analysis

Opportunities Threats
Strengths Strength Opportunities (SO) Strategies Strength Threats (ST) Strategies

Leveraging brand recognition in new Investing into R&D to thwart Technology


segments industry disruptors.
Weaknesse Weakness Opportunities (WO) Strategies Weaknesses Threats (WT) Strategies
s
Investing into customer oriented services Get out of the business and focus on growth
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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

- High margins compare to Computer Services industry's competitors - Even though


MindTree is facing downward pressure on profitability, compare to competitors it is still
racking in higher profit margins.

- 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.

- Talent management at MindTree and skill development of the employees - Human


resources are integral to the success of MindTree in Computer Services industry.

- 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

What are "Weaknesses" in SWOT Analysis?


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Weaknesses of MindTree can either be absence of strengths or resources of capabilities


that are required but at present the organization doesn't have. Managers have to be
certain if the weakness is present because of lack of strategic planning or as a result of
strategic choice.

- 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.

- Declining market share of MindTree with increasing revenues - the Computer


Services industry is growing faster than the company. In such a scenario MindTree has
to carefully analyze the various trends within the Technology sector and figure out what
it needs to do to drive future growth.

- 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.

- Business Model of MindTree can be easily imitated by the competitors in the


Computer Services industry. To overcome these challenges companyname needs to
build a platform model that can integrate suppliers, vendors and end users.

Opportunities for MindTree

What are "Opportunities" in SWOT Analysis?


Opportunities are potential areas where the firm chan identify potential for - growth,
profits, and market share.

- 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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- Increasing government regulations are making it difficult for un-organized players


to operate in the Computer Services industry. This can provide MindTree an opportunity
to increase the customer base.

- 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.

- Accelerated technological innovations and advances are improving industrial


productivity, allowing suppliers to manufacture vast array of products and services. This
can help MindTree to significantly venture into adjacent products.

- Trend of customers migrating to higher end products - It represents great


opportunity for MindTree, as the firm has strong brand recognition in the premium
segment, customers have experience with excellent customer services provided by
MindTree brands in the lower segment. It can be a win-win for the company and
provides an opportunity to increase the profitability.

PESTEL / STEP / PEST Analysis and Solution of MindTree

Porter Five Forces Analysis of MindTree

Marketing Segmentation, Targeting, and Positioning Analysis of MindTree


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Theats to MindTree

What are "Threats" in SWOT Analysis?


Threats are factors that can be potential dangers to the firm's business models because
of changes in macro economic factors and changing consumer perceptions. Threats can
be managed but not controlled.

- 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.

- Competitors catching up with the product development - Even though at present


the MindTree is still leader in product innovation in the Computer Services segment. It is
facing stiff challenges from international and local competitors.

- 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.

- Changing political environment with US and China trade war, Brexit impacting


European Union, and overall instability in the middle east can impact MindTree business
both in local market and in international market.

- 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.

Objectives of Performing SWOT analysis at MindTree for Computer Services Segment


SWOT analysis is one of the most widely used tools for strategic analysis. According to a
research done by Harvard Business School – more than 75% of the decision makers in
strategy department had used SWOT analysis for the purpose of strategic analysis.
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Strategists at MindTree can utilize SWOT for following objectives -

Using SWOT for Strategic Planning at MindTree


Over the years the nature of the strategic planning has changed in the Computer
Services. decision makers utilize SWOT not only for short term planning but also for
long term strategic planning. It will provide the decision makers with a better
understanding of market, organization, and competitors.

Using SWOT for Performance Improvements


In the short term SWOT is an effective tool to improve business processes, part of
business, or both together. SWOT helps MindTree managers to identify areas of
weakness in operations in the organization. Managing and eliminating these weaknesses
can drive future growth of MindTree.

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.

Using SWOT to Thwart Competitive Challenges


Often decision makers neglect trends in macro environment because of the narrow
focus on the industry. It can happen to MindTree in the Technology at the present
moment. To manage these competitive challenges and macro environment trends
decision makers at MindTree can use SWOT to pinpoint specific threats and allocate
requisite resources to deal with those threats.

Using SWOT Analysis to Set Corporate Goals & Key Objectives


The easiest objective for which SWOT analysis can be used by MindTree is for setting
strategic goals, defining key objective areas and desired results. This can lead to a time
based SWOT analysis exercise where MindTree leaders conduct SWOT at a fixed interval
and assess what it needs to tinker to achieve the stated goals.

Steps to conduct SWOT analysis for MindTree for the


Technology Sector
Clearly defining the objectives of the SWOT analysis. Leaders at MindTree in Computer
Services industry should define the appropriate scope for the analysis. If the scope is too
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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.

Try to substantiate the strengths, weaknesses as objectively as possible in terms of what


the MindTree does, how it does it, and where are there scope of improvements.

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.

Key considerations to write a good MindTree SWOT Analysis


- What strategies MindTree can employ to diversify the risks emerging from the
weaknesses of organization and threats from the macro environment.

- 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.

- Isolate the strengths and weaknesses of the MindTree as much as possible.

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

PESTEL, a complementary tool to SWOT, expands on the analysis of external context by


looking in detail at specific types of issues that frequently have an impact on
implementation of project/ initiatives.

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