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Complete SWOT Analysis of Cognizant – North America’s Most Prestigious Consulting Firm

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In our previous blog, we did a dynamic SWOT Analysis of one of the world’s major consulting firms, Accenture. Here we will be doing an Outright SWOT Analysis of Cognizant.

It is one of the Most Prestigious Consulting Firms across North America. It has ranked as one of the Top Employer companies in Linkedin as of 2021 in India.

It has been able to drive such large success in its industry. It can still improve its market share by marketing its products with the use of advanced digital marketing techniques. As we know that most people in the world are using online media, it becomes essential for every business to use digital marketing for its brand awareness and marketing its products. If you are curious about learning what digital marketing is and how to use it to your advantage – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Thus this makes us keen to know how Cognizant has been able to maintain a prominent position in the market. To understand that we have given an Outright SWOT Analysis of Cognizant. But before we start with its SWOT Analysis let us learn about Cognizant as a Company, its services, competitors, financials, and more.

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About Cognizant

SWOT Analysis of Cognizant | IIDE

Cognizant is an American multinational technology company. It was established in the year 1994, by Kumar Mahadeva and Francisco D’Souza. It has its headquarters situated in Teaneck, New Jersey, United States.

It is a high-profile company that helps companies to modernize technology, rephrase processes, and keep inventing new experiences so their company can hold a dignified position in today’s fast-changing world. Cognizant is ahead to give consultancy of business, IT services and outsource services.

In India, Cognizant has been named as a Top Employer company in Linkedin as of 2021. So, it possesses a higher position in giving employment as well as guidance to rising businesses.

Cognizant works for Banking and financial services, Insurance policy, health, manufacturing, and Retail industries. Also as a company, it has got many integrated values that will lead the company to reach pick soon. It has spread many initiatives like the Company’s philanthropic and corporate social responsibility (CSR) initiatives are conducted by employees. 

 

Quick Stats About Cognizant
Founders Kumar Mahadeva and Francisco D’Souza
Year Founded 1994
Origin New Jersey, United States
No. of Employees 289,500 (2020)
Company Type Public
Market Cap $43.81 Billion (2020)
Annual Revenue $16.6 Billion (2020)
Net profit $1.3 Billion (2020)

 

Services of Cognizant

Cognizant has a wide reach in its industry with a large market share. Thus to keep its customers satisfied it provides them with different services. Following are some of the services of Cognizant:

  • Outsourcing
  • Consulting
  • BPO
  •  information technology
  • Managed services

 

Close Competitors of Cognizant

Cognizant is one of the leading companies in its industry, thus it needs to face many competitors. Following are some of the top competitors of Cognizant:

  • Accenture
  • Capgemini
  • Wipro
  • Infosys
  • Tata Consultancy Services (TCS)
  • HCL Technologies
  • Deloitte
  • IBM

 

Now that we have known about the company let us start with the SWOT Analysis of Cognizant.

 

SWOT Analysis of Cognizant

SWOT Analysis is one of the best and widely used methods by companies all over the world to analyze their overall position in the market and see what improvements need to be made. It helps to find out the internal strengths and weaknesses of Cognizant and also its external opportunities and threats.

Let us now start with its SWTO Analysis by first starting with the Strengths of Cognizant.

 

Strengths of Cognizant

As one of the most popular and leading companies, Cognizant has got many strengths & abilities that stabilize the company to thrive in the global market. Following are some of the strengths of Cognizant:

  • Strong cash flow – Cognizant has a strong free cash flow that helps the company to never hesitate to invest in resources, new technology, cost of experiments, and research. So the company can always grow and expand its business broader.
  • Great brand portfolio – As of now, Cognizant has made a very pragmatic and achievable brand portfolio. That brand portfolio can be extremely used to widen the organization’s point of view into new products and categories.
  • High level of customer satisfaction – Cognizant is a well-known and sufficiently successful company but it always pays attention to consumer satisfaction. The company has managed to keep a dedicated customer relationship and always tries to achieve good responses from customers. Cognizant always takes care of potential customers.
  • Excellent performance in new markets – Cognizant is an expert at entering new markets and getting success over there. The company now has become large enough to build up new projects and diversify branches in the market. Cognizant never steps behind to take risks and achieve excellent results in new areas that are good for the company.
  • Automation – With technological development, the company has developed quality to automate almost all the activities. This has enabled the company to rise efficiently and ignore human errors. This strength makes it more reliable and trustworthy to work with. 
  • Wide networking – Cognizant has successfully built the network in such a way that it reaches out everywhere at any time effectively. Due to huge networking, the company’s success ratio remains high.

 

Weaknesses of Cognizant

Behind everything, there are always its pros and cons. As a company Cognizant is also having some weaknesses or areas where it is laying back. It can make improvements and correct the lacking areas to make the company more perfect in the future. Following are some of the weaknesses of Cognizant:

  • The concentration of business – Cognizant is situated in North America so its inclination and spread of market sometimes become limited to North America itself. More or less it curtails the growth margin of the business.
  • Gaps in the Product range – Cognizant is unable to present more variety of product categories in less time so consumers don’t get a wide variety of products so this lack of choice lets other companies enter the market.
  • Less Integration with different cultures – Cognizant can merge with small industries but it is not very successful in integrating with companies of different cultures. So it becomes a kind of monotonous business.

 

Opportunities for Cognizant

Cognizant is quite an Opportunities seeker business, it adopts a futuristic approach in the market. Following are some of the opportunities for Cognizant:

  • Taxation policy – The new tax policy by the government can impact the business positively and open new opportunities for Cognizant to make large profits.
  • New Environmental policy – There will be numerous opportunities in the field for all the companies in the market. It will be a great chance for Cognizant to adopt new environmentally friendly technology and gain market share in the new product range.
  • New trends in consumers – Time changes everything. With passing time consumer’s tastes and preferences change hence new trends in consumers can open up new markets and gain more revenues by diversifying products as per demands.
  • Economic uptick – There is an increment in consumer spending on different products, after many years of recession in the market so there is a great opportunity for Cognizant to grab the advantage and make everything available to the consumers.
  • Opening of new markets – Because of government agreement there is a possibility of opening up new markets. Government free trade agreements and the adoption of new technological advances have allowed Cognizant to enter a new emerging market.

 

Threats for Cognizant

There are some minor threats before Cognizant that can harm the company in one or another way. So it becomes essential for the company to consider the challenges and try to remove them. Following are some of the Threats to Cognizant:

  • Switch to online business – Like all industries are switching to online business and marketing, there is a serious threat to the company’s physical infrastructure and supply chain of the products.
  • Intense competition – There is immense competition in this field so there is a threat to the business’ profitability and stability.
  • Environment regulations – New environment regulations under the Paris agreement (2016) can be a threat to Cognizant for some product categories.
  • No continuous supply of innovative products – Over the years the company has developed many new products but sometimes there is not maintained a regular supply of those products that become a barrier for consumers to develop trust.
  • Currency fluctuations – As Cognizant is operating in many countries, it is exposed to currency fluctuations in the political and economical market across the nations.

 

With this, we have reached the end of the SWOT Analysis of Cognizant. This study helps the company to find out the proper strategy to implement in its business by giving it an overview of the business.

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Conclusion

On the study of the SWOT Analysis of Cognizant, we have seen that it is one of the largest companies in its industry. It has a strong cash flow and a high value of customer satisfaction. It can grow its business with the help of new environmental policies and new trends in customers. Even with such advantages it faves some flaws in the market.

The gaps in its product range and less integration with different cultures along with the switching to online business and intense competition in the market are some negative factors to the business growth. It can eliminate some of the negative factors by implementing advanced digital marketing techniques in the market. As most people are going towards digital platforms it is essential for every business to implement digital marketing so that it can attract more customers. If you are interested in learning and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

If you would like to read such detailed analyses of companies, find more such insightful case studies on our IIDE Knowledge portal.

Thank you for taking the time to read this, and do share your thoughts on this case study in the comments section below.

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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