The profitability of the business. It generally assesses

The
learning objective for the industry analysis is
to determine the opportunities and threats that exist for firms within a
competitive environment. They should be able to appreciate how the various
forces operating in an industry create or limit the chances
for survival.

The following are the objectives framed for industrial analysis
of WIPRO ltd.

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1.     
To
understand how industry structure drives competition, this determines the
industry’s level of profit.

 

2.     
To
assess industry attractiveness.

 

3.     
Use
evidence of structural change to forecast future profitability.

 

4.     
To
identify key success factors.

 

5.     
To
determine the external factors that affects the industry

 

6.     
To
provide information about the financial position, performance and changes in
financial position of a company that is useful to a wide range of
users in making economic decisions.
CHAPTER 2: INDUSTRY
ANALYSIS

 

 

PESTEL ANALYSIS OF WIPRO LTD.

A PESTEL analysis is a tool
used by marketers to monitor the external marketing environment or to analyse
the micro environmental factors that have an impact on business or any
organisation. P in PESTEL stands for Political, E stands for Economic, S stands
for social, T stands for Technology, E stands for Environmental and L indicates
Legal.

 

 

 

 

 

 

 

 

 

 

 

P: POLITCAL

 

Political analysis is done so as to ascertain
the prevalent government interference in the business. It also assesses the
government and political stability in an economy as these factors decide the
longevity and profitability of the business. It generally assesses how much the
government is influencing Wipro Ltd to an extent.

 

The political factors are as following:

 

 

The political situation have been quite
favourable for wipro ltd. since the introduction of NEP(new economic policies)-
there has been tremendous support from the government’s side. But there are
certain level of trade regulation and tariffs related to technology. There is
also some risk of military invasion present. The prevailing corruption in India
may also be a reason for hindrance in operations of the business.

 

 

 

E: ECONOMICAL

 

 

Economical factors are the factors that impact
our economy which in turns affect the profitability and performance of the
business. It is an important factor that determines the financial stability of
the business and whether or not it will be able to survive in the market or
not.

 

 

The economical factors affecting Wipro LTD are
as following:

–      Increased foreign investment:
There has been a substantial increase in the foreign direct investment in India
because of how technologically advanced our country is becoming. This invites
more and more investors into the scene.

–      Change in policies:
Due to the change in the policies and due the introduction of new economic
policies and due to the removal of various tariffs, the results have been
favorable for the economy.

–      Exchange rate

 

 

 

S: SOCIAL

 

 

 

Social factors include the new and emerging
trends in the country. These factors are useful for the marketer to understand
what the customers actually needs and wants. This also includes the change in
the lifestyle, change in people’s behavior and attitude and their lifestyle.

 

 

The social factors of Wipro ltd includes the
following:

 

 

–      Diversified employees:
people from all walks of life are employed in Wipro ltd that makes it very easy
for the employer to understand the emerging trends and change in lifestyle.

–      Huge intellectual capital

 

 

 

T: TECHNOLOGICAL

 

These are the factors that include technological
advancement rate and innovation in a country and the rate of the development
that can affect an economy.

 

The technological factors of Wipro limited are:

 

–      Huge customer base

–      High rate of technological advancement

–      Infrastructural development

–      Easy and convenient access of internet

 

 

 

 

E: ENVIRONMENTAL

 

These are the factors that include how the
ecological elements and our environment can affect the economy. There has also
been an increase in the corporate social responsibility whereby the company or
the industries are obliged to resort to sustainable measures.

 

– energy
saving technology products

 


use of more and more eco-friendly measures to so as to manage servers and other
technological instrument.

 

 

 

L: LEGAL

 

 

The legal factors include all the factors that
aren’t illegal and wrong on customer’s part so that they can operate their
business without any fear and free from any penalty.

 

 

 

The legal factors are as following:

 


Complication over legal taxes

 


New laws

 

 

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