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Tata Consultancy Services Limited (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Tata Consultancy Services Limited

Tata Consultancy Services (TCS) is one of the major providers of information technology services. The company provides a wide range of services including business consulting, information technology, business process outsourcing, infrastructure, and engineering. The company operates in Americas, Europe, Middle East, South Africa and Asia Pacific. The company is headquartered at Maharashtra, India and has around 111,407 employees.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Extensive global reach
  • Strong financial performance
  • Employee management skills

Weaknesses

  • Significant exposure to financial services market
  • Lack of scale in consulting operations

External

Opportunities

  • Focus on SMB segment
  • Growth in worldwide IT services

Threats

  • Increasing employee costs
  • Intense competition
  • Consolidation in the end markets
  • Rupee appreciation
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