Wipro is an IT services industry and this is the oldest company which is dealing with its customers on high levels. The porter’s model is to specify the competition concerns within and without the concerning industry and company. It is all about the evaluation of the profitability of the firm and the strategies which the industry may have for the better and profitable margins in the market. Porter Model is made for analyzing the Wipro’s reputation and concerns of maintain the level of the business. It also works for the betterment of the company by getting to know the threats and the opportunities of Wipro in the market. The Model is:
• Threat of New Entrants
• Threat of Substitutes
• Threat of Existing Rivals
• Power of Buyers
• Power of Suppliers
Implementation of the Model on Wipro
Implementation of the model is the most important act to do because by doing this act you will get to know the value of Wipro in the market. This IT industry is filled up with the new players and also the old ones. These are the implementation points of the Wipro:
Threat of New Entrants (LOW)
In this industry the threat of new entrants is very low because there are barriers which are mad by the old players and Wipro is the company which is working from many decades. The new technologies are available in the market which can never understandable for the new entrants at once. They need time to overcome the place of the old ones. One should meet the needs of the customers and these may become a difficult task for the new rivals. So the new entrants are standing on the lowest side of the picture.
Threat of the Substitutes (MEDIUM)
Threat of the substitutes is normal than low because they are the existing players in the market and know all the tricks and technologies which are needed to be upgraded. They always try to maintain the level of the product or will make new products for the alternatives of Wipro. The substitutes always go for providing the things which may included in the needs of the customers. They provide those things on good performance and with fewer prices. Wipro never feel afraid of this threat but this threat may give it a great challenge to do something more than before.
Threat of the Existing Rivals (HIGH)
Existing rivals like Tata Consultancy Services, Infosys, HCL Technologies, Tech Mahindra and Larsen & Toubro Info tech may have the same potential and quality of the products as Wipro is providing. IT solutions are the need of the time and everyone is familiar with the need of social media and they need it fast and perfect. For these needs the existing rivals are also working on these needs and the most important thing in all is the satisfaction of the customers. If they will go to maintain the same level they become the biggest rivals of Wipro. But as Wipro is already working on the new technologies it must ne need to worry about these little threats by the rivals.
Bargaining power of the Buyers (HIGH)
Buyers can go for the bargaining while purchasing any product or getting any services. They are the strength of any company so that Wipro is also strengthening by its customers and their satisfaction. New technologies which may cause a big difference between the buyer and Wipro can be controlled by timely over coming on this issue. If Wipro go for working as per the need of time it will never fail to maintain its clientage and high level of working.
Bargaining Power of Suppliers (MEDIUM)d
Suppliers all depend on the profit margins and if they get their margin in shape of profit they will go in favor of Wipro. Wipro is working for managing its rates and quality services. Suppliers will not do bargaining on the level of their requirements because Wipro is that IT industry which has the thoughts of less the rates than the market in sometimes. It offers the promotions and the high level of serving. These strategies make Wipro the outclass company in all services, quality of products and quality.
Conclusion
The competitors of Wipro Ltd are countering forces of advancing technologies and meeting customer needs from time to time. Wipro Ltd focuses on establishing customer value that remains competitive and reliable over time. It can face serious threats from entry of new firms in the industry regarding the revenue earnings and profitability.
References
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