Previously we had written a SWOT analysis on CarMax which got an amazing response, with the same motivation we are here to discuss the SWOT Analysis of LTI – Larsen & Toubro Infotech.
Larsen & Toubro Infotech aka LTI is a global technology consultancy service provider that provides digital solutions for the company. LTI is an old company that was founded in 1996. LTI successfully handled 460+ clients in growing their business and helping them in conveying their products and services to the ultimate customer.
LTI’s target groups are all industries and big organizations. To reach their target they have digital services provided with a new kind of consulting to help them reimagine their businesses in this digital era. To know more about the changing scenario of marketing, join our Free MasterClass on Digital Marketing 101 by the CEO and founder of IIDE, Karan Shah.
Do you want to know how LTI became successful? In this blog, we will get to learn about the SWOT analysis of LTI. Before proceeding further let us just know more about the LTI as a company.
Founded in 1997 – Larsen & Toubro Infotech Limited (L&T Infotech) is a multinational technology consulting and digital solutions firm that has helped over 475 clients prosper in a rapidly changing environment. By using Business-to-IT Connect and genuinely motivated personnel, it gives clients a competitive advantage. L&T Infotech has 23 software development facilities and 44 sales offices across the world.
LTI (Larsen & Toubro Infotech Limited) is an Indian-based multinational tech company that provides consultancy and tech services to its clients. In 2017, NASSCOM ranked Larsen & Toubro Infotech Limited as the seventh-largest Indian IT service providing company in terms of export revenue.
LTI operates in over 33 different countries and they are aiming to expand it if it’s required to achieve its client requirement to boost their digital transformation amongst their competitors. Every day LTI tracks their Client’ reports to make them more efficient and improvise in their quality of service toward them. LTI has over 40,000 employees to handle every task carried out by management.
|Chairman||A. M. Naik|
|No. of Employees||35,500+|
|Market Cap||$14.18 Billion (2022)|
|Annual Revenue||Rs 12,644 Crore (2021)|
|Net Income/ Profit||Rs 1,938 Crore (2021)|
Services by LTI
LTI offers the following services to its clients globally –
- Information technology
Competitors of LTI
Here are the top 5 competitors of LTI
- Tata Consultancy Service (TCS)
Now that we know important facts about LTI, we can look into SWOT analysis of LTI.
SWOT Analysis of LTI
A SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like LTI to compare its business and performance to that of its competitors.
It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of LTI.
To better understand the SWOT analysis of LTI, refer to the infographics below:
Below is an explicit guide to the SWOT analysis of LTI.
Strengths of LTI
LTI has numerous strengths that help it to thrive in the marketplace. Some of the strengths of LTI are
- Strong Team of Employees: LTI consists of a team of more than 40,000 employees who work rigorously to enable effectiveness in their client’s business and inject technology operation into it.
- Key Milestones: LTI has achieved enormous milestones without letting any stone unturned. Past milestones are many but recently in 2021 the company has achieved a global ranking of the fastest-growing brand in finance IT service.
- Client Base: LTI a global digital consulting company has a mesmerizing client base of 475 members. The company has operations in 33 countries including India, Canada, Spain, the United States and many other countries. Such a strong record in itself works as the biggest strengths of the company.
- Diversified Revenue Stream: As LTI deals with many different IT-related sectors like consulting, IMS, MS, etc leads to diversity in the revenue stream.
- Company Financial Stability: Since the last 5.5 years, the growth rate of LTI boosted and gone up to 336.7% of returns on Nifty 500.
- High level of Client Satisfaction: LTI has a customer-focused approach. It has loyalty programs for its clients. Clients are loyal because of its customer-focused approach. It has a good environment for employees and a shift in culture that is guided by the management.
- Renowned Reputation: LTI is one of the world’s biggest firms and has had high revenue due to its focus on consultancy, operational services, management, digital, technology and high standards and morals which leads to its high performances.
Weaknesses of LTI
Weaknesses are aspects of a business or brand that can be worked upon. Here are some of the weaknesses of LTI:
- Dependence on the Mature Market: LTI majorly deals in mature markets where there is less amount of growth and lack of innovation.
- High Client Concentration: As there is high customer concentration the benefits will be high but at the same, the risk factor also increases because if that customer leaves out then it will lead to a huge loss.
- Inefficient Use of Shareholders Fund: LTI is not that efficient in terms of using or utilizing shareholder funds that leads to a lack of customer transparency and trust
- Lack of Growth: The company has been in this industry for a while and as compared to other IT sector companies like TCS, Wipro, etc, the growth is very low.
- Innovation: LTI has been unable to compete in terms of innovation with the sector’s best businesses despite spending more on research and development than the industry average.
- Lack of Coordination: Due to several sectors working simultaneously there can be a lack of communication and coordination in teams. LTI has been trying to serve several mid-size companies as well but faces stiff competition which can further lead to slower growth.
- Dependence on Consultancy: Consultancy is a major source of revenue in LTI, despite having different sector works which can be bad for companies long run.
- Investment in R&D: LTI has not been able to compete with the leading players in the industry in terms of innovation and R&D. It has come across as a mature firm looking forward to bringing out products based on tested features in the market.
Opportunities for LTI
Opportunities are potential areas of focus for a company to improve results, increase sales, and, ultimately, profit. Some of the opportunities for LTI are
- Emerging Markets: Due to the engaging global market with globalization. This brings out the greatest opportunities of managing the data like transactions, details, history, etc.
- Cloud Computing Technology: Using cloud computing technology made it easy to manage and handle the data. This helps in accessing data in a quick and systematic manner.
- Increase in Digitalization: Increase in Digitalization leads to switching traditional businesses to digital business thus leading to more clients and opportunities of expanding business.
- Expanding Customer Base: LTI can gain from the acquisition of smaller consulting and financial companies by expanding its customer base.
- Attract and Retain Talent: Everybody looks forward to working at firms where employees have a good working environment, LTI can use it to select the best of human resource available.
- Constant Requirement of Services: With regular changes in the various policies and the growing scale of businesses, the demand for audit, tax and advisory services will never be zero.
Threats to LTI
Threats are environmental factors that can be harmful to a company’s growth. The following are some of LTI’s threats:
- Exposure to Foreign Markets: Globalization brings opportunities, but at the same time, it also brings a threat of being replaced by a foreign business.
- Bigger MNCs Entering India: Entering big size multinational companies into the domestic market will lead to grabbing the attention of the clients. Hence, it will be hard for a domestic company to sustain its standing in front of big companies.
- Lack of Visibility: LTI is not that visible as compared to its competitors in the market, so this leads to decrease in clients reliability.
- Government Policies: Government Policies are the major factors that affect the business of a company like LTI.
- Strong Competitors: There are lots of competitors in the market. When there is already competition from established players in the industry, then ultimately it will continue to diminish LTIs market share.
- Knowledge Centers: This can have a counter effect on consulting firms’ business when firms constitute their in-house knowledge centers.
This ends our comprehensive SWOT analysis of LTI. Let us conclude our learning below.
LTI is a well-reputed company that is a trusted one among business clients in the world. In the SWOT analysis of LTI, we learnt that it has reached the markets of its nation but is still facing the problem of marketing its products internationally due to fewer funds and inefficient financial planning.
With increasing competition in such markets, companies need to do better digital marketing efforts. In today’s world, people need to know more about the marketing aspects used to boost the company’s growth. If you are intrigued with the above piece of information in learning more and upskilling, check out the 3 Months Advanced Digital Marketing Course by IIDE to know more.
We hope this blog on the SWOT Analysis of LTI has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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