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5C Analysis for HCL Infosystems

Company

HCL Infosystems Ltd. was one of the leading IT companies in India. The company offered a diversified product line such as mobile handsets, office automation equipment and computer hardware. The mission of the company was to provide the world-class information technology services and the solutions so that the business customers of the company can serve their customers in a better way. The company believed in initiating the actions through which the freedom of innovation and action could be defined perfectly. Moreover, HCL also had emphasized on its workers and their strengths. Whereas, the company had also covered all the aspects of marketing mix elements: Product, Place, Price and Promotion. Moreover, the blend of marketing strategies such as product planning and management of information system were the key elements for success in satisfying the needs of customers.

Competitors

The major competitors of the company included some well-known leading companies in the world and operating in India. The major competitors of HCL were DELL, IBM, APPLE, LENOVO, ACER and SONY. The competitors of the company were mostly the multinational companies. HCL faced the real pressure from the leading multinational competitors and white-box vendors. Because of the intense competition, the share of the company declined from 6.6 per cent in the first quarter of 2010 to 3.7 per cent in the third quarter. Moreover, the multinational corporations had the clear understanding of the All-in-one market in India. They played their cards effectively to have a competitive advantage in the market.

Customers

The different customers, which were targeted by HCL through its desktop computers and its relative products where the students, professionals, small offices, style conscious users, companies, banks and companies which were based on dealing with clients. The age group which was targeted by the company was from 20-25, 25-35 and people above age 40. Similarly, their income was also the key factor for the company like they could afford to spend INR 5,000 to 6,000 additional on the desktops and wanted the machine to fulfill their needs of education plus entertainment. Furthermore, the company had 30 exclusive stores and more than 1600 retail partners.

Collaboration

The main supplier of desktop computers were the companies in Taiwan and China, who were mainly responsible for the production of different components. Whereas, the technology was provided by Intel and AMD companies and Microsoft helped with the operating systems. The company was having collaboration with different companies like Apple, Kodak, Microsoft, Cisco and many more. Similarly, the distributors of the companies were the national distributor, regional distributors and retailers.

Climate

There are many factors that affect the business climate and environment. Considering the political factor the HCL had the impact of changes in government policies and duties. Moreover, the swings in the currency rates and slow economic growth also had effects on the company. Whereas, in the social aspect HCL had the advantage of being Indian brand. Furthermore, the advancement in the technology also had the effect on the business environment.

Porter’s Five Force Model of Competition for HCL

Threat of New Entrants

The electronic industry is always very attractive for the new companies, whereas the market does not require very huge investments therefore, the new companies can easily enter the market considering the initial investment required. Even though the investment required is not very high still the electronic industry possess high competition as there are IT giants like Apple and Cisco also conducting their business in this industry. Therefore, the threat of new entrants for the company is a medium.

Bargaining Power of the Buyer

The financing of the company is mostly impacted by the bargaining power of the buyers. The expectation of the customers in the electronics industry is very high as the customer has different options available to them and they expect the same features from their brands like others operating in the market. Moreover, the customers are also demanding and prefer higher quality while buying the products like desktop PCs or Laptops. They have a desire for high quality as leading companies are working in the market like Apple, Dell, IBM and HP. Similarly; the switching cost is also not very high for the customers as they have different options available. Therefore, the bargaining power of the buyers is high for HCL.

Bargaining Power of Seller

The industry of supplier is dominated by a very few firms and the products which are expertise of the suppliers have very high switching cost. Therefore, the bargaining power of the supplier is high............................

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