We explored the SWOT analysis of the tech giant TCS last time, let us look at the SWOT analysis of HCL infosystems in this case study.
From originally being just a search and development division to now emerging as an independent company, this software service company has come an extended way, HCL infosystems is an Indian information technology and distribution company.
From the innovation of new products to their proper marketing, the company has made its position in the competitive IT market. Marketing has a significant role in the success of any company and in today’s advancing world digital marketing is the new trend. If you are interested in knowing more about digital marketing, do check out our Free Digital Marketing Masterclass by Karan Shah, the CEO and founder of IIDE.
Do you want to learn about how HCL infosystems have evolved and made their name in the industry? To learn that in this case study we will do an extensive SWOT analysis of HCL infosystems. So let us first begin by learning more about the company, their products, services, history, competitors and more.
About HCL Infosystems
HCL Infosystems Ltd is a hardware integration, hardware, and ICT integration company that provides a good range of technology products and services including Computing, Storage, Networking, Security, Telecom, and Retail.
As an Integrated Management and Management Services organization, HCL focuses on verticals including Telecom, BFSI, Governance & Power. HCL has a distribution and marketing network, marketing Digital Lifestyle product range in partnership with global ICT products, including Apple, Cisco, Ericsson, Kingston, Kodak, Microsoft, Nokia, and many more. HCL originated in 1976, the company office is located in Delhi.
Operating across various sectors including aerospace and defence, automotive, banking, etc, HCL is now on the Forbes Global 2000 List. It is also among the highest 20 largest publicly-traded companies in India.
Quick Stats about HCL Infosystems
|No. of Employees||1139 (2019)|
|Market Cap||INR 437.51 Cr (2021)|
|Annual Revenue||INR 4340 Cr (2019)|
|Net Income/ Profit||INR 25.6 Cr (2019)|
Products and Services by HCL Infosystems
HCL Infosystems is a traditional company providing the following range of products:
- Desktops and Notebooks
- Chips and Servers
- Display, Networking and Security Products
- Storage and Support services
Competitors of HCL Infosystems-
- Wissen Infotech
SWOT Analysis of HCL Infosystems
SWOT analysis is a framework used to identify a company’s strengths, weaknesses, opportunities, threats, and how the company can use them to be profitable.
A company can not control all the factors that it has control over, such as its weaknesses, but it can still grow by identifying its strongest assets and improving its efficiency.
Let us understand it better by looking at the SWOT of HCL Infosystems.
1. Strengths of HCL Infosystems
Strengths are the advantages that help the brand to stand out from the competition. Let’s look at some of the strengths of HCl Infosystems:
- Global Presence– HCL Infosystem is one of the leading growing global technology companies providing their services worldwide.
- Effective Marketing– The company focuses on marketing and brand building for enhancing its industry-leading growth.
- Proper Financial Management– It has had consistent Financial performance in the recent past.
- Innovation– Focuses on Frontline Innovation and Diversifying its differentiation.
- Strong Partnerships Management– HCL Infosystem has a strong digital partner ecosystem which has increased its reach.
- Strong R&D – The company is India’s largest engineering service provider.
2. Weakness of HCL Infosystems
Weaknesses are the points that can hinder the growth of the company, but if identified and worked on properly they can be avoided completely.
- Dependency– It is dependent on the economies of America and Europe comprising around 85% of revenue.
- Strong Competition– With other MNC in the market, like Infosys, Wipro, there is direct competition in the brand value and maintaining its grades for the upcoming stakes in the future. HCL lacks in executing a successful business and marketing strategy compared to their competitors.
- Not Sufficient Use of Assets- There is a decline in quarterly net profit and operating profit margin, affecting the asset turnover of the company. The net cash flow has also declined due to the insufficient use of assets to generate profits.
3. Opportunities for HCL Infosystems
Opportunities are important factors that can contribute to the improvement and growth of the brand.
- Efficient Management- The advancement in technology by HCL and its adaptation lead to employee motivation, high productivity, and business growth, making it a dream corporation for many to work at.
- Entering New Markets- Extension to countries like Sri Lanka to benefit workers.
- Digital Transformation– HCL Technology includes the use of digital transformation in all areas giving a chance to create new operations processes and deliver more value to customers globally. HCL Technology stands at 16% in digital transformation.
4. Threats on HCL Infosystems
Threats are external factors that can cause potential harm to the company if not realized and worked on as early as possible.
- Non-Core Sources– Dividends and interest, gain or loss on sales of fixed assets and investments, and so on, are on the rise, posing a danger to overall business management.
- Risky Investments- The corporation engages in high-risk investments, licensing profits worth $1.1 billion are spent on intellectual property and future product production plans. The problem emerges as these intellectual properties are old and losing market share to other firms’ offerings.
- Exchange Losses– HCL Companies is experiencing foreign exchange losses as the value of the rupee continues to fall. The company’s foreign exchange situation has been severely harmed. They must create new policies to balance the losses and revenues.
Now that we have done a deep dive into the SWOT analysis of HCL infosystems, let us conclude our learnings in the synopsis.
HCL Infosystem has gone a long way from its humble beginnings as a computer manufacturer to succeed in the information technology market by its effective services and global presence. They are constantly improving their strengths to expand their possibilities and minimize threats and limitations
Some of HCL’s weaknesses, such as direct market rivalry and reliance on other nations for projects, are outweighed by its strengths, such as being a worldwide leader in technology, constant revenue growth, financial success, and strong research and development team (R&D). This was accomplished by giving excellent prospects in India, such as digital transformation and using web platforms to its advantage.
Digital Marketing and its different attributes have contributed to the success of the company and are important factors for upskilling the online presence of any company. You can also learn how to create an impactful and targeted digital advertising campaign by being a part of IIDE’s Online Digital Marketing Course which upskills you in all aspects of the rising digital marketing field.
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