INTRODUCTION

The theory of a product life cycle was first introduced in the 1950s to explain the expected
life cycle of a typical product from design to obsolescence, a period divided into the phases
of product introduction, product growth, maturity, and decline. The goal of managing a
product's life cycle is to maximize its value and profitability at each stage. Life cycle is
primarily associated with marketing theory.

PRODUCT LIFE CYCLE

1. INTRODUCTION STAGE

This is the stage where a product is conceptualized and first brought to market. The goal of
any new product introduction is to meet consumers' needs with a quality product at the lowest
possible cost in order to return the highest level of profit. The introduction of a new product
can be broken down into five distinct parts:

 Idea validation, which is when a company studies a market, looks for areas where
needs are not being met by current products, and tries to think of new products that
could meet that need. The company's marketing department is responsible for
identifying market opportunities and defining who will buy the product, what the
primary benefits of the product will be, and how the product will be used.
 Conceptual design occurs when an idea has been approved and begins to take shape.
The company has studied available materials, technology, and manufacturing
capability and determined that the new product can be created. Once that is done,
more thorough specifications are developed, including price and style. Marketing is
responsible for minimum and maximum sales estimates, competition review, and
market share estimates.
  Specification and design is when the product is nearing release. Final design questions
are answered and final product specs are determined so that a prototype can be
created.
 Prototype and testing occur when the first version of a product is created and tested by
engineers and by customers. A pilot production run might be made to ensure that
engineering decisions made earlier in the process were correct, and to establish
quality control. The marketing department is extremely important at this point. It is
responsible for developing packaging for the product, conducting the consumer tests
through focus groups and other feedback methods, and tracking customer responses to
the product.
 Manufacturing ramp-up is the final stage of new product introduction. This is also
known as commercialization. This is when the product goes into full production for
release to the market. Final checks are made on product reliability and variability.

In the introduction phase, sales may be slow as the company builds awareness of its product
among potential customers. Advertising is crucial at this stage, so the marketing budget is
often substantial. The type of advertising depends on the product. If the product is intended to
reach a mass audience, than an advertising campaign built around one theme may be in order.
If a product is specialized, or if a company's resources are limited, then smaller advertising
campaigns can be used that target very specific audiences. As a product matures, the
advertising budget associated with it will most likely shrink since audiences are already
aware of the product. Techniques used to exploit early stages make use of penetration pricing
(low pricing for rapid establishment) as well as "skimming," pricing high initially and then
lowering price after the "early acceptors" have been lured in.
 2. GROWTH STAGE

The growth phase occurs when a product has survived its introduction and is beginning to be
noticed in the marketplace. At this stage, a company can decide if it wants to go for increased
market share or increased profitability. This is the boom time for any product. Production
increases, leading to lower unit costs. Sales momentum builds as advertising campaigns
target mass media audiences instead of specialized markets (if the product merits this).
Competition grows as awareness of the product builds. Minor changes are made as more
feedback is gathered or as new markets are targeted. The goal for any company is to stay in
this phase as long as possible.

It is possible that the product will not succeed at this stage and move immediately past
decline and straight to cancellation. That is a call the marketing staff has to make. It needs to
evaluate just what costs the company can bear and what the product's chances for survival
are. Tough choices need to be made—sticking with a losing product can be disastrous.

If the product is doing well and killing it is out of the question, then the marketing department
has other responsibilities. Instead of just building awareness of the product, the goal is to
build brand loyalty by adding first-time buyers and retaining repeat buyers. Sales, discounts,
and advertising all play an important role in that process. For products that are well-
established and further along in the growth phase, marketing options include creating
variations of the initial product that appeal to additional audiences.

MATURITY STAGE

At the maturity stage, sales growth has started to slow and is approaching the point where the
inevitable decline will begin. Defending market share becomes the chief concern, as
marketing staffs have to spend more and more on promotion to entice customers to buy the
product. Additionally, more competitors have stepped forward to challenge the product at this
stage, some of which may offer a higher-quality version of the product at a lower price. This
can touch off price wars, and lower prices mean lower profits, which will cause some
companies to drop out of the market for that product altogether. The maturity stage is usually
the longest of the four life cycle stages, and it is not uncommon for a product to be in the
mature stage for several decades.
A savvy company will seek to lower unit costs as much as possible at the maturity stage so
that profits can be maximized. The money earned from the mature products should then be
used in research and development to come up with new product ideas to replace the maturing
products. Operations should be streamlined, cost efficiencies sought, and hard decisions
made.

From a marketing standpoint, experts argue that the right promotion can make more of an
impact at this stage than at any other. One popular theory postulates that there are two
primary marketing strategies to utilize at this stage—offensive and defensive. Defensive
strategies consist of special sales, promotions, cosmetic product changes, and other means of
shoring up market share. It can also mean quite literally defending the quality and integrity of
your product versus your competition. Marketing offensively means looking beyond current
markets and attempting to gain brand new-buyers. Relaunching the product is one option.
Other offensive tactics include changing the price of a product (either higher or lower) to
appeal to an entirely new audience or finding new applications for a product.
 3. DECLINE STAGE

This occurs when the product peaks in the maturity stage and then begins a downward slide
in sales. Eventually, revenues will drop to the point where it is no longer economically
feasible to continue making the product. Investment is minimized. The product can simply be
discontinued, or it can be sold to another company. A third option that combines those
elements is also sometimes seen as viable, but comes to fruition only rarely. Under this
scenario, the product is discontinued and stock is allowed to dwindle to zero, but the
company sells the rights to supporting the product to another company, which then becomes
responsible for servicing and maintaining the product.

P
PROBLEMS WITH THE PRODUCT LIFE CYCLE
THEORY

While the product life cycle theory is widely accepted, it does have critics who say that the
theory has so many exceptions and so few rules that it is meaningless. Among the holes in the
theory that these critics highlight:

 There is no set amount of time that a product must stay in any stage; each product is
different and moves through the stages at different times. Also, the four stages are not
the same time period in length, which is often overlooked.
 There is no real proof that all products must die. Some products have been seen to go
from maturity back to a period of rapid growth thanks to some improvement or
redesign. Some argue that by saying in advance that a product must reach the end of
life stage, it becomes a self-fulfilling prophecy that companies subscribe to. Critics
say that some businesses interpret the first downturn in sales to mean that a product
has reached decline and should be killed, thus terminating some still-viable products
prematurely.
 The theory can lead to an over-emphasis on new product releases at the expense of
mature products, when in fact the greater profits could possibly be derived from the
mature product if a little work was done on revamping the product.
 The theory emphasizes individual products instead of taking larger brands into
account.
 The theory does not adequately account for product redesign and/or reinvention.
The Information Technology (IT) Industry of India

The Information Technology Industry of India dates back to 1967 when the Tata Group in
collaboration with Burroughs set up the first software zone, SEEPZ in Mumbai. In 1973
SEEPZ became the first software export zone which saw 80% of the software export in the
1980s. Since then, the IT sector of India has grown by leaps and bounds and has acquired
India a brand name in the IT and ITES (Information Technology Enabled Services) sector in
the global scenario. The major hubs for the IT export sector are Bangalore, Chennai,
Hyderabad, Delhi, Mumbai and Kolkata. Bangalore has earned the sobriquet, ‘The Silicon
Valley of India’ owing to the maximum IT export (generating 77% of the net IT export
revenue of India). The IT- ITES sector can be broadly classified into two categories (i)
Business Process Outsourcing (BPO) and (ii) Domestic and IT export. The growth in the
BPO sector under the supervision of the IT-ITES sector has been phenomenal. According to
NASSCOM, “The IT-BPO sector in India aggregated revenue of US$ 100 billion in FY 2012,
where export and domestic revenue stood at US$ 69.1 billion and US $31.7 billion
respectively”.

The industry is also an employment intensive sector. The estimated employment generation
in the FY 2012 was an expected 230,000 thus providing direct employment to 2.8 million and
indirect employment 88.9 million people all over the country. According to a report prepared
by Gartner, the top five outsourcing companies of India are TCS, Cognizant, Infosys, Wipro
and HCL Technologies.
Top five IT companies of India

The top five IT companies of India had a golden time during 2012 when the collective
revenue growth of these companies was 13.3% (6 times faster than the global market).
However, not all the top five companies are on the same page as Cognizant overtook Infosys
(2nd ranking supplier of the industry). Cognizant’s revenue growth of 20% as compared to
Infosys’s 6% compelled the latter to break the retirement of Narayan Murthi (founder of
Infosys and former CEO) to envisage some strategic moves to stay at par in the competition.
According to Sid Pai, partner and president of outsourcing advisory, ISG’s Asia Pacific
Division, “The Indian firms are going to need to mimic the global firms. And that of course
means a margin dilution, so there is a rough patch ahead for these guys”. This in short means
that these companies have to entirely revamp their existing model of service providing,
change the old model of charging for services. Besides a fundamental change has come over
the customers interested in buying IT services and a local proximity to the customers is
essential.
The 2013 Scenario of the IT- ITES sector in
India

The information technology in India is looking towards a bleak future in general in the
current year. However, small sparks of encouragement are there. As per the statement of
BVR Mohan Reddy, chairman and managing director, Infotech Enterprises Limited, a global
technology solution provider, “Such periods of uncertainty in the past have provided a great
platform for organizations to refine strategy and execute initiates that increase competitive
advantage and accelerate growth.” The Indian IT sector will witness a predictable slump of
growth from that of 16% last year to a discouraging 11% this year. However, growth in the
allied sectors like health care and insurance is a small ray of hope. Andhra Pradesh, ranking
as the fourth largest IT exporter of the country is being severely affected by power supply
shortage which is naturally slowing down the development of the state’s IT sector. It is to be
mentioned here that Andhra Pradesh accounts for 12% of the total IT export of India and the
turnover for 2012 was RS53, 246 crore. Hyderabad is in a little better position as it has been
proactive in changing its infrastructure to keep pace with the changing face of the global IT
export scenario.

The Recession period, the free fall of rupees against dollar compounded with other factors
has resulted in a severe decline in the hiring process of the IT sector. The employment
generation capacity of this sector has shrunk considerably. IT professionals including ex- IT
sector employees are now seeking employment in financial services, telecommunications and
manufacturing industries which have recently witnessed a phenomenal growth.
Challenges faced by the IT sector in India

• The IT sector of India needs to discard its old model of service providing and operations.
The old model popularly known as the ADM (Application, Development and Maintenance) is
obsolete. It is imperative that the IT sector resorts to the new model of ‘outcome based
billing’ and fixed contract based services
• The maturity of the offshore models has created a demand among the customers for a close
proximity of the service providers which may even involve setting up of near shore stations
for support.
• There is a stiff competition from China, Philippines and Eastern Europe which are also
proving to be low cost and competitive countries. It is estimated that by 2020 they will be a
20% stakeholder in the global IT export scenario.
• A shrinking talent pool in our country is also largely affecting the IT sector. The number of
employable graduates in the business sector is as low as 10% to 15% while that of qualified
and employable engineers is 26% only
• IT giants like IBM and Accenture have now opened up their own centers in India with the
same target audience as that of the Indian IT Sector.
• The proposed development of the tier 2 and 3 cities has not gone as planned so the entire IT
sector is stagnated in the 9 major cities.
• It is imperative that the IT sector of India should focus on the new emerging trends like
Social media, Mobility, Analytics and Cloud (SMAC)
• There is a need for a total revamping of the infrastructure of the IT sector which
unfortunately is pending due to fund unavailability. Fund shortage is also affecting the
medium and small IT enterprises which need a basic financial injection for their start-up.
PRODUCTS IT INDUSTRY DEALS WITH

Information technology deals with the storage, processing and distribution of information.
During the decade, the industry has gained global attention due to a series of political,
technological and socioeconomic events. India is witnessing the emergence of information
technology hubs in Bangalore, Mumbai, Hyderabad and Chennai.

The Silicon Valley and Bangalore both share many same aspects in the development of
Information technology such as pleasant climate, skilled workforce, presence of high quality
educational, technological and scientific centers and access to markets.
ABOUT INFOSYS

Infosys is the best company to work for in India. Infosys was rated the leading
choice of employees with an index score of 100 on parameters of career and growth
plan, prestige/ company reputation, training/ coaching/ mentoring, financial
compensation and benefits, job content, and merit-based performance evaluation.

The magazine reports that Infosys is the most sought-after company at campus recruitment in
engineering colleges due to a "meritocracy that embeds and values skills, which in turn,
ensures Infoscions (as company staffers like to call themselves) a financially secure future."

Infosys has been ranked # 1 in the ‘Business Today Best Companies to Work For’ five times
in a span of nine years, during which we did not participate in two annual surveys. In the
fiscal year 2010, our people practices were recognized with -

 ‘India‘s Best Companies to Work For’ by Great Place to Work® Institute

 ‘Best Companies for Leaders’ by Hay Group and Chief Executive Magazine


COMPANY PROFILE
Infosys Limited (formerly Infosys Technologies Limited) is an Indian multinational
corporation that provides business consulting, information technology and outsourcing
services. It has its headquarters in Bengaluru, Karnataka, India.[4]Infosys is the second-
largest Indian IT company by 2017 revenues and 596th largest public company in the
world in terms of revenue.[5] On June 29, 2018 its market capitalisation was $42.23
billion.[6] The credit rating of the company is A- (rating by Standard & Poor's

Infosys Limited (formerly Infosys Technologies Limited) is an Indian

multinational corporation that provides business consulting, information technology and
outsourcing services. It has its headquarters in Bengaluru, Karnataka, India.[4]

Infosys is the second-largest Indian IT company by 2017 revenues and 596th largest public
company in the world in terms of revenue.[5] On June 29, 2018 its market capitalisation was
$42.23 billion.[6] The credit rating of the company is A- (rating by Standard & Poor's).

History

Infosys was established by 7 engineers in Pune, India with an initial capital of $250 in
1981.[8] It was registered as Infosys Consultants Private Limited on 2 July 1981.[9] In 1983, it
relocated its office to Bengaluru, Karnataka, India.

Name change: The company changed its name to Infosys Technologies Private Limited in
April 1992 and to Infosys Technologies Limited when it became a public limited company in
June 1992. It was later renamed to Infosys Limited in June 2011.[10]
Share listing: An initial public offer (IPO) in February 1993 with an offer price of ₹95
(equivalent to ₹490 or US$6.80 in 2017) per share against book value of ₹20 (equivalent to
₹100 or US$1.40 in 2017) per share. The Infosys IPO was under subscribed but it was "bailed
out" by US investment bank Morgan Stanley which picked up 13% of equity at the offer
price.[11] Its shares were listed in stock exchanges in June 1993 with trading opening at ₹145
(equivalent to ₹750 or US$10 in 2017) per share.[12]

Its shares were listed on NASDAQ in 1999 through ADR route. The share price surged to
₹8,100 (equivalent to ₹25,000 or US$350 in 2017) by 1999 making it the costliest share on
the market at the time. At that time, Infosys was among the 20 biggest companies by market
capitalization on the NASDAQ.[11]ADR listing was shifted from NASDAQ to NYSE
Euronext to give its European investors beits sto[13]

Revenue growth: Its annual revenue touched US$100 million in 1999, US$1 billion in
2004 and US$10 billion in 2017.[9]

Geographical expansion: In 2012, Infosys announced a new office in Milwaukee,

Wisconsin to service Harley-Davidson, being the 18th international office in the United
States.[14][15] Infosys hired 1,200 United States employees in 2011, and expanded the
workforce by an additional 2,000 employees in 2012.[15] In April 2018 Infosys announced
expanding in Indianapolis Indiana. The development will include more than 120 acres and is
expected to result in 3,000 new jobs — 1,000 more than previously announced.
Product and portfolio expansion: In July 2014, Infosys started a product
subsidiary called, EdgeVerve Systems., focusing on enterprise software products for business
operations, customer service, procurement and commerce network domains.[16] In August
2015, the Finacle Global Banking Solutions assets were officially transferred from Infosys
and became part of the product company EdgeVerve Systems product portfolio.[17]

Products and Services

It provides software development, maintenance and independent validation services to

companies in finance, insurance, manufacturing and other domains.[18]

One of its known products is Finacle which is a universal banking solution with various
modules for retail & corporate banking.[19]

Glass building in Pune campus

Its key products and services are:

 NIA - Next Generation Integrated AI Platform (formerly known as Mana)

 Infosys Consulting - a global management consulting service
 Infosys Information Platform (IIP)- Analytics platform
 EdgeVerve Systems which includes Finacle, a global banking platform
 Panaya Cloud Suite
 Skava

Geographical presence

Main block in Chennai campus

Infosys had 82 sales and marketing offices and 123 development centres across the world as
at March 31, 2018, with major presence in India, United States, China, Australia, Japan,
Middle East and Europe.[20][21]

In 2017, 61.9%, 22.5% and 3.2% of its revenues were derived from projects in North
America, Europe and India, respectively. Remaining 12.4% of revenues were derived from
rest of the world.[22][23]
Acquisitions

Name of acquired Acquisition Acquisition Business of acquired

Based in
company cost date company
Expert Information US$23 Dec
Australia IT service provider
Services million 2003[24][25]
US$38 Insurance and financial
McCamish Systems USA Dec 2009[26]
million services
AUD 37 Strategic sourcing and
Portland Group Australia Jan 2012[27][28]
million category management
Lodestone Holding US$345
Switzerland Sep 2012[29] Management consultancy
AG million
US$200 Mar
Panaya Israel Automation technology
million 2015[30][31]
US$120 Apr
Skava USA Digital experience solutions
million 2015[32][33]
US$70 Information management
Noah-Consulting USA Nov 2015[34]
million consulting services
GBP 7.5 Product design and customer
Brilliant Basics UK Aug 2017[35]
million experience

Listing and share holding pattern

In India, shares of Infosys are listed at BSE where it is included in BSE SENSEX and NSE
where it is included in CNX NIFTY. Its shares are listed by way of American Depositary
Receipts (ADRs) at the New York Stock Exchange.

Over a period of time, the shareholding of its promoters has gradually reduced, starting from
June 1993 when its shares were first listed. The promoters' holdings reduced further when
Infosys became the first Indian-registered company to list Employees Stock Options Schemes
and ADRs on NASDAQ on 11 March 1999.[36] The promoter holding on 31 March 2002 was
28.72% and at 30 June 2017 it dropped to 12.75% as they gradually sold their shares and
reduced involvement in active management of the company.[citation needed]

A building in Thiruvananthapuram campus

Shareholders (as of 30 June 2017)[38][39] Shareholding

Promoters group 12.75%

Foreign institutional investors (FII) 37.47%

ADR 16.70%

Individual shareholders 09.83%

Banks, financial institutions and insurance companies 11.24%

Mutual funds 08.97%

Others 03.04%

Total 100.00%
Employees
Infosys had a total of 200,364 employees at the end of March 2017, of which 36% were
women.[40] Its workforce consists of employees representing 129 nationalities. In 2016, 89%
of its employees were based in India.[41] Out of its total workforce, 79% are software
professionals, 16% are working in its BPM arm and remaining 5% work for support and
sales.[23]

During financial year 2017, Infosys received 1,293,877 applications from prospective
employees and had a gross addition of 51,004 employees, a 4% hiring rate. These numbers do
not include its subsidiaries.[40]

The attrition rate of Infosys Ltd., excluding its subsidiaries, for financial year 2017, was
15%.[23]

Training centre in Mysuru

CEOs
Since its establishment in 1981 till 2014, the CEOs of Infosys were its promoters, with N. R.
Narayanmurthy leading the company in its initial 21 years. Dr Vishal Sikka was the first non-
promoter CEO of Infosys who worked for around 3 years.[46][47][48] Dr Vishal Sikka resigned
in August 2017. In a personal note to board colleagues,[49] Dr. Sikka cites a 'drumbeat of
distractions' and "false, baseless, malicious and increasingly personal attacks" as his reason
for leaving Infosys.[50] Many sources suspect this is in reference to a long running feud with
Infosys Founders over the new direction Sikka was reportedly taking Infosys. [51][52][53] After
his resignation, UB Pravin Rao was appointed as Interim CEO and MD of Infosys.[54] Infosys
has appointed Salil Parekh chief executive officer (CEO) and managing director (MD) of the
company with effect from January 2, 2018,[1] culminating the search of a CEO which began
since the departure of Vishal Sikka in August due to a spat with the founders over various
issues.[55]

Salil S Parekh, current CEO & MD

Name Period
Narayan Murthy 1981 to March 2002
Nandan Nilekani March 2002 to April 2007
S Gopalakrishnan April 2007 to August 2011
S D Shibulal August 2011 to July 2014
Vishal Sikka August 2014 to August 2017
UB Pravin Rao - (Interim) August 2017 to December 2017[54]
Salil S Parekh January 2018 onwards[56]
Initiatives

Infosys Foundation

In 1996, Infosys established the Infosys Foundation, to support the underprivileged sections
of society.[57] At the outset, the Infosys Foundation implemented many programs in
Karnataka. It subsequently covered Tamil Nadu, Telangana, Andhra Pradesh, Maharashtra,
Odisha, and Punjab in a phased manner. A team at the foundation identifies all the programs
in the areas of healthcare, education, culture, destitute care and rural development. [58] The
Infosys Foundation USA promotes science and math education in USA, with an emphasis on
under-represented students.[59]

Academic Entente

Infosys' Global Academic Relations team forges Academic Entente (AcE)[clarification needed] with
academic and partner institutions.[60] It explores co-creation opportunities between Infosys
and academia through case studies, student trips and speaking engagements. They also
collaborate on technology, emerging economies, globalization, and research. Some initiatives
include research collaborations, publications, conferences and speaking sessions, campus
visits and campus hiring.[61]

Infosys Labs

Infosys Labs is organized as a global network of research labs and innovation hubs.[62]

Infosys Labs collaborates with leading national and international universities such as the
University of Southern California Viterbi School of Engineering,[63] University of
Cambridge, Queens University of Belfast,[64] University of Illinois at Urbana–Champaign,
Indian Institute of Technology Bombay, IITB-Monash Research Academy, Indraprastha
Institute of Information Technology, Delhi, Indian Institute of Science, Bangalore, Purdue
University,[65] Indian Institute of Information Technology, Bengaluru.[66]
Infosys Prize

The Infosys Prize is an annual award given to scientists, researchers, engineers and social
scientists connected to India. It is given by the Infosys Science Foundation, a non-profit trust
which was set up in February 2009 by Infosys and some members of its Board. The prize is
given under six categories. Each category includes a gold medallion, a citation certificate, and
prize money of ₹6.5 million (US$91,000).[67][68]

Awards and recognitions

 In 2017, HfS Research included Infosys in Winner's Circle of HfS Blueprint for
Managed Security Services, Industry 4.0 services and Utility Operations.[69][70][71]
 In 2013, Infosys was ranked 18th largest IT services provider in the world by HfS
Research.[72]
 In 2012, Infosys was ranked #19 amongst the world's most innovative companies by
Forbes.[73] In the same year, Infosys was in the list of top twenty green companies in
Newsweek's Green Rankings for 2012.[74]
 In 2006, Institute of Chartered Accountants of India included Infosys into Hall of
Fame for being the winner of Best Presented Accounts for 11 consecutive years.
OBJECTIVES OF INFOSYS

OBJECTIVES Objective is to exploit various technologies to provide effective and cost

efficient solutions to their customers. Infosys believe in working as partners with customers
in identifying their needs & work with them designing solutions to satisfy their business
needs through long term relationship.
Vision and Mission

Infosys International Inc. has a solid reputation as a business and information technology
consulting company.

OUR VISION

To help our clients meet their goals through our people, services and solutions

OUR MISSION

Infosys International Inc. is dedicated to providing the people, services and solutions our
clients need to meet their information technology challenges and business goals.

 Work to understand the needs and requirements of our clients before proposing a
solution
 Develop responsive proposals that provide cost-effective solutions to our clients needs
 Deploy the right mix of people and products to deliver value-added services and
solutions to our clients
 Follow-up on the quality of our services and solutions to our clients
 Appreciate the trust that our clients put in us as we work with them to improve their
business and information technology.
STATE OF INFOSYS

Infosys Ltd.

ET 500 Rank 2017 20

NSE closed15:59 | 28-09-2018

 BSE 730.05

Today's Change 5.25 (0.72%)

Volume 7,489,931

Open 721.00

Prev. Close 724.80

Day's Trend

715.20 734.55

 Bid0.00(0)
 Mkt Cap (₹ Cr.)317952.76
 P/E (x)19.64
 P/B (x)2.44
 Div_ Yield (%)5.98
 BETA 0.35
 Offer730.05(424)
 Face Value (₹)5
 EPS-TTM (Rs.)37.18
 BV/share (₹)298.73
 52Wk L/H447.15 / 748.5
 Avg. Daily Volatility %1.30
Infosys Ltd Futures and Options Quotes

Instrument Type

Option TypeExpiry DateStrike Price

Infosys Futures Price (Expiry: 25-10-2018) : 727.55 4.40 (0.50%)

Open Price 721.15 Prev. Close 723.15 Open interest 24210000

High Price 734.00 Turnover (₹ in Lakhs) 76637.35 Open Interest Change -264000

Low Price 717.75 No. Of Contracts Traded 8778 Open Interest Change(%) 4.67%

Infosys Ltd Share Holding

Category No. of shares Percentage

Promoters 560,182,338 12.82

Foreign Institutions 1,531,470,224 35.06

Others 871,676,540 19.95

NBFC and Mutual Funds 499,967,192 11.45

Financial Institutions 465,636,204 10.66

General Public 418,474,600 9.58

GDR 20,973,322 0.48

Central Government 2,560 0.00

About Infosys Ltd.
Infosys Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap of
Rs 317952.76 Crore) operating in Information Technology sector.

Infosys Ltd. key Products/Revenue Segments include Software Development Charges which
contributed Rs 61910.00 Crore to Sales Value (99.94 % of Total Sales) and Software
Products which contributed Rs 31.00 Crore to Sales Value (0.05 % of Total Sales)for the year
ending 31-Mar-2018.

For the quarter ended 30-06-2018, the company has reported a Consolidated sales of Rs
19128.00 Crore, up 5.78 % from last quarter Sales of Rs 18083.00 Crore and up 12.00 %
from last year same quarter Sales of Rs 17078.00 Crore Company has reported net profit after
tax of Rs 3612.00 Crore in latest quarter.

The company’s top management includes Dr.Punita Kumar Sinha, Mr.D N Prahlad, Mr.D
Sundaram, Mr.Michael Gibbs, Mr.Nandan M Nilekani, Mr.Salil Parekh, Mr.U B Pravin Rao,
Ms.Kiran Mazumdar Shaw, Ms.Roopa Kudva. Company has Deloitte Haskins & Sells LLP
as its auditoRs As on 07-09-2018, the company has a total of 4,368,382,980 shares
outstanding.
 RESEARCH METHODOLOGY

WHAT IS SECONDARY DATA :

Secondary data is the data that have been already collected by and readily available from
other sources. Such data are cheaper and more quickly obtainable than the primary data and
also may be available when primary data can not be obtained at all.

WHY IT HAS BEEN USED :

As we had to complete this report in a limited given time we had to use SECONDARY
DATA to complete this report .
 ANALYTICAL TOOLS

PORTERS FIVE FORCES MODEL

Porter's Five Forces is a business analysis model that helps to explain why different industries
are able to sustain different levels of profitability. The model was originally published in
Michael Porter's book, "Competitive Strategy: Techniques for Analyzing Industries and
Competitors" in 1980. The model is widely used to analyze the industry structure of a
company as well as its corporate strategy. Porter identified five undeniable forces that play a
part in shaping every market and industry in the world. The forces are frequently used to
measure competition intensity, attractiveness and profitability of an industry or market. These
forces are:

1. Competition in the industry;

2. Potential of new entrants into the industry;

3. Power of suppliers;

4. Power of customers;

5. Threat of substitute products.

Competition in the Industry

The importance of this force is the number of competitors and their ability to threaten a
company. The larger the number of competitors, along with the number of equivalent
products and services they offer, the lesser the power of a company. Suppliers and buyers
seek out a company's competition if they are unable to receive a suitable deal. When
competitive rivalry is low, a company has greater power to do what it wants to do to achieve
higher sales and profits.
Potential of New Entrants Into an Industry

A company's power is also affected by the force of new entrants into its market. The less time
and money it costs for a competitor to enter a company's market and be an effective
competitor, the more a company's position may be significantly weakened. An industry with
strong barriers to entry is an attractive feature for companies that would prefer to operate in a
space with fewer competitors.

Power of Suppliers

This force addresses how easily suppliers can drive up the price of goods and services. It is
affected by the number of suppliers of key aspects of a good or service, how unique these
aspects are, and how much it would cost a company to switch from one supplier to another.
The fewer the number of suppliers, and the more a company depends upon a supplier, the
more power a supplier holds.

Power of Customers

This specifically deals with the ability customers have to drive prices down. It is affected by
how many buyers or customers a company has, how significant each customer is, and how
much it would cost a customer to switch from one company to another. The smaller and more
powerful a client base, the more power it holds.

Threat of Substitutes

Competitor substitutes that can be used in place of a company's products or services pose a
threat. For example, if customers rely on a company to provide a tool or service that can be
substituted with another tool or service or by performing the task manually, and if this
substitution is fairly easy and of low cost, a company's power can be weakened.

Understanding Porter's 5 Forces and how they apply to an industry, can enable a company
adjust its business strategy to better use its resources to generate higher earnings for its
investors.
Infosys Limited Porter Five (5) Forces Analysis for
Technology Industry

Threats of New Entrants

New entrants in Technical & System Software brings innovation, new ways of doing things
and put pressure on Infosys Limited through lower pricing strategy, reducing costs, and
providing new value propositions to the customers. Infosys Limited has to manage all these
challenges and build effective barriers to safeguard its competitive edge.

How Infosys Limited can tackle the Threats of New Entrants

 By innovating new products and services. New products not only brings new
customers to the fold but also give old customer a reason to buy Infosys Limited ‘s
products.
 By building economies of scale so that it can lower the fixed cost per unit.
 Building capacities and spending money on research and development. New entrants
are less likely to enter a dynamic industry where the established players such as
Infosys Limited keep defining the standards regularly. It significantly reduces the
window of extraordinary profits for the new firms thus discourage new players in the
industry.

How Infosys Limited can tackle Bargaining Power of the Suppliers

 By building efficient supply chain with multiple suppliers.

 By experimenting with product designs using different materials so that if the prices
go up of one raw material then company can shift to another.
 Developing dedicated suppliers whose business depends upon the firm. One of the
lessons Infosys Limited can learn from Wal-Mart and Nike is how these companies
developed third party manufacturers whose business solely depends on them thus
creating a scenario where these third party manufacturers have significantly less
bargaining power compare to Wal-Mart and Nike.
How Infosys Limited can tackle the Bargaining Power of Buyers

 By building a large base of customers. This will be helpful in two ways. It will reduce
the bargaining power of the buyers plus it will provide an opportunity to the firm to
streamline its sales and production process.
 By rapidly innovating new products. Customers often seek discounts and offerings on
established products so if Infosys Limited keep on coming up with new products then
it can limit the bargaining power of buyers.
 New products will also reduce the defection of existing customers of Infosys Limited
to its competitors.

How Infosys Limited can tackle the Treat of Substitute Products / Services

 By being service oriented rather than just product oriented.

 By understanding the core need of the customer rather than what the customer is
buying.
 By increasing the switching cost for the customers.

How Infosys Limited can tackle Intense Rivalry among the Existing
Competitors in Technical & System Software industry

 By building a sustainable differentiation

 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just competing
for small market.
PORTERS FIVE FORCES MODEL DIAGRAM
OFFERINGS BY INFOSYS
Infosys helps organizations transform themselves into analytics-driven enterprises. Our
proven expertise and extensive experience enables you to monetize data by leveraging the
three pillars that support the elements of process, people and technology in your organization.
These pillars also constitute three distinct Infosys offerings:

 Boundaryless information
 Pervasive analytics
 Progressive organization

Boundaryless information

The boundaryless information platform removes barriers within data, processes and
technologies to make the right information available to the right people at the right time. The
Infosys approach is driven by data provisioning and begins with the objective of building an
inventory of information assets with internal master, transactional and external data. Real-
time data streaming enables enterprises to generate accurate and actionable insights about
customers and operations. The platform integrates data from internal and external sources,
stores the data in a data lake, makes it available for consumption using the right data grid, and
effectively leverages internal infrastructure and external cloud environments.
The Infosys Boundaryless Information Platform offering comprises of various
technology components:

Data lakes

Master data management

Data grid

Real-time processing

Platforms and data-analytics-on-the-cloud

Progressive organization

A progressive organization is the glue that binds, builds and delivers capabilities of the
boundaryless information platform and pervasive analytics. Progressive organizations
introduce the right structure, processes and culture to embrace new paradigms. The success of
a progressive organization depends on establishing the right data and analytics strategy along
with the appropriate operating model to execute the strategy. By focusing on data
governance, change management and strategic organizational design, enterprises can align
business and technology and enable business speed and responsiveness. Data governance
ensures that data is accurate, complete, secure, available – anytime and anywhere – and that it
enables the relevant architecture, policies and procedures in the information value chain.

Infosys delivers key capabilities to build a progressive organization:

Strategy and target operating model

Change management

Landscape simplification and modernization

Architecture and engineering

Data governance and management

Pervasive analytics

An analytics-driven enterprise is defined by how proactively it uses available data to make

decisions across levels, i.e., how mature it is in terms of analytics and the features that are
enabled. While strategic decision-makers need predictive analytics, field sales and operations
need real-time analytics to address changing customer preferences, predictive maintenance
issues, etc. Pervasive analytics focuses on data consumption and ensures that analytics is used
across all organizational levels and for all important business decisions.

The Infosys Pervasive Analytics offering includes the following:

Self-service

Analytical workbench

Responsive enterprise

Machine learning

Prescriptive and optimization

PRODUCT LIFE CYCLE INFOSYS

A business enterprise owes its existence to continuous value creation resulting in better
customer experiences. Product life cycle management (PLM) at a conceptual level deals with
the enhancement of the ‘creation’ processes for product / services or design of production
processes, across the enterprise. Challenges in the ‘creation’ processes that drive the design
of a robust PLM strategy and implementation are:

 Product information not structured around ‘creation’ processes (i.e., no new product
development and introduction (NDPI) view in PLM strategy)
 Inability to leverage collaboration across the extended enterprise (suppliers, vendors,
customers), in the context of the product life cycle
 Inability to measure and enhance the product life cycle cost: Product performance and
analytics, total cost to the customer, and knowledge management (of creation process)
are some of the life cycle-wide characteristics that have a direct impact on business
metrics

Value proposition

Infosys Product Life Cycle Management Services imbibe a holistic view of ‘creation’
processes within an organization and invest in thought leadership and implementation of
those concepts through IT enablement of those processes.

Fully aware of the wider import of PLM to an organization, Infosys attempts to break free
from the conventional mindset about PLM package implementation and helps clients realize
the true value of PLM, i.e., in terms of business metrics such as time-to-market, time-to-
volume, product quality, and NPDI success rate.

 Accelerated NPDI and product change (ECM) processes: Infosys critically

examines clients’ product collaboration, co-creation, and product feedback processes
in order to automate and continually improve, using tailor-made solutions /
accelerators based on industry standard PLM packages.
  Collaborative enterprise with "single source of truth": The success of PLM is
usually limited as the product information is scattered across the supply chain and is
ever growing in complexity. Our service-oriented-architecture-led PLM attempts to
bring all the collaborators under a canonical product and process definition resulting
in a "single source of truth" and faster and enhanced product decisions.
 Reduce total life cycle costs: PLM solutions from Infosys span the complete product
life cycle right from ideation through end of life. Scientific process evaluation tools,
reference models, PLM-harmonization platforms derived from multiple PLM
programs, out-of-the box integration adapters, and global rollout templates reduce
solution life cycle costs and implementation time.

Services and solutions

 Consulting Services
 Implementation Services
 Value Chain Services

Alliance partnerships

With an aim to leverage best-in-class PLM solutions for the benefit of clients, Infosys has
formed strong alliance partnerships with the PLM vendor ecosystem.

 ARAS
 Dassault Systems
 Oracle
 SAP
 Siemens
FOR EXAMPLE

Finacle is a core banking product developed by the Indian corporation Infosys that provides
universal digital banking functionality to banks. In August 2015, Finacle became part of
EdgeVerve Systems Limited, a wholly owned product subsidiary of Infosys.[1]

Finacle is used by banks across 100 countries to serve over 1 billion customers.[2] Finacle has
a strong focus on product strategy and a global market presence.[3][4]
Market position

Several major customers of Finacle includes Union Bank of India, Bank of India, Oriental
Bank of Commerce, Punjab National Bank, Jammu & Kashmir Bank, Bank of Baroda, IDBI
Bank, Karnataka Bank Andhra Bank, Federal Bank, Punjab & Sind Bank, South Indian Bank,
United Bank of India, UCO Bank, Qantas Credit Union in Australia,[20] ICICI Bank in India,
DBS Bank, Indian Overseas Bank in India,[21] Discover Financial Services in the USA,[22]
Emirates NBD,[23] Al Hilal Bank in the United Arab Emirates.[24][25] and Corporation Bank.

Finacle was identified as a long term leader by Forrester for offering comprehensive banking
functionalities. With capabilities to support customer focused banking, customer oriented
product configuration, multi-channel capability and social media support, Finacle topped the
Forrester Wave: Customer-Centric Global Banking Platforms.[26]

Finacle from Infosys was positioned as the leader in Gartner Magic Quadrant for
International Retail Core Banking in November 2014, ahead of SAP and Temenos,
demonstrating the highest Ability to Execute, and Completeness of Vision.[27]

IDC Financial Insights released in its new IDC MarketScape report, and noted Infosys-
Finacle as a "leader". The solution is considered to exhibit high levels of strategic vision,
demonstrable an ability to deliver functionality and support to their clients. The recent
signing of new contracts in Europe indicated that the vendor was able to overcome the
hurdles of regulatory requirements and budgeting constraints for core banking systems in
Europe.[28]

Finacle Mobile Banking and e-Banking solutions were rated as ‘Best-in-Class’ for security
and authentication capabilities and enterprise support, in a report published by CEB
TowerGroup analysts[29]

Finacle was recognized as a leader among Omnichannel Banking Solutions. Six top
omnichannel banking platforms were evaluated on a comprehensive set of 41 criteria
focusing on strategy, current offering, and market presence. Finacle also achieved the highest
score amongst all six vendors on the strategy and market presence criteria.[3]
So as we can see FINACLE FROM INFOSYS is on the MATURITY STAGE in the
PRODUCT LIFE CYCLE
BCG MATRIX

Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed
by Bruce Henderson of the Boston Consulting Group in the early 1970s. It is the most
renowned corporate portfolio analysis tool. It provides a graphic representation for an
organization to examine different businesses in it’s portfolio on the basis of their related
market share and industry growth rates. It is a two dimensional analysis on management of
SBU’s (Strategic Business Units). In other words, it is a comparative analysis of business
potential and the evaluation of environment.

According to this matrix, business could be classified as high or low according to their
industry growth rate and relative market share.

Relative Market Share = SBU Sales this year leading competitors sales this year.

Market Growth Rate = Industry sales this year - Industry Sales last year.

The analysis requires that both measures be calculated for each SBU. The dimension of
business strength, relative market share, will measure comparative advantage indicated by
market dominance. The key theory underlying this is existence of an experience curve and
that market share is achieved due to overall cost leadership.

BCG matrix has four cells, with the horizontal axis representing relative market share and the
vertical axis denoting market growth rate. The mid-point of relative market share is set at 1.0.
if all the SBU’s are in same industry, the average growth rate of the industry is used. While,
if all the SBU’s are located in different industries, then the mid-point is set at the growth rate
for the economy.

Resources are allocated to the business units according to their situation on the grid. The four
cells of this matrix have been called as stars, cash cows, question marks and dogs. Each of
these cells represents a particular type of business.
 10 x 1x 0.1 x

Figure: BCG Matrix

1. Stars- Stars represent business units having large market share in a fast growing
industry. They may generate cash but because of fast growing market, stars require
huge investments to maintain their lead. Net cash flow is usually modest. SBU’s
located in this cell are attractive as they are located in a robust industry and these
business units are highly competitive in the industry. If successful, a star will become
a cash cow when the industry matures.
2. Cash Cows- Cash Cows represents business units having a large market share in a
mature, slow growing industry. Cash cows require little investment and generate cash
that can be utilized for investment in other business units. These SBU’s are the
corporation’s key source of cash, and are specifically the core business. They are the
base of an organization. These businesses usually follow stability strategies. When
cash cows loose their appeal and move towards deterioration, then a retrenchment
policy may be pursued.
3. Question Marks- Question marks represent business units having low relative market
share and located in a high growth industry. They require huge amount of cash to
maintain or gain market share. They require attention to determine if the venture can
be viable. Question marks are generally new goods and services which have a good
commercial prospective. There is no specific strategy which can be adopted. If the
firm thinks it has dominant market share, then it can adopt expansion strategy, else
retrenchment strategy can be adopted. Most businesses start as question marks as the
company tries to enter a high growth market in which there is already a market-share.
 If ignored, then question marks may become dogs, while if huge investment is made,
then they have potential of becoming stars.
4. Dogs- Dogs represent businesses having weak market shares in low-growth markets.
They neither generate cash nor require huge amount of cash. Due to low market share,
these business units face cost disadvantages. Generally retrenchment strategies are
adopted because these firms can gain market share only at the expense of
competitor’s/rival firms. These business firms have weak market share because of
high costs, poor quality, ineffective marketing, etc. Unless a dog has some other
strategic aim, it should be liquidated if there is fewer prospects for it to gain market
share. Number of dogs should be avoided and minimized in an organization.

Limitations of BCG Matrix

The BCG Matrix produces a framework for allocating resources among different business
units and makes it possible to compare many business units at a glance. But BCG Matrix is
not free from limitations, such as-

1. BCG matrix classifies businesses as low and high, but generally businesses can be
medium also. Thus, the true nature of business may not be reflected.
2. Market is not clearly defined in this model.
3. High market share does not always leads to high profits. There are high costs also
involved with high market share.
4. Growth rate and relative market share are not the only indicators of profitability. This
model ignores and overlooks other indicators of profitability.
5. At times, dogs may help other businesses in gaining competitive advantage. They can
earn even more than cash cows sometimes.
6. This four-celled approach is considered as to be too simplistic.
DATA ANALYSING AND FINDINGS

BCG MATRIX FOR INFOSYS

BCG MATRIX FOR INFOSYS

1: STARS – Stars represent business units having large market share in a fast growing
industry. In Infosys MANUFACTURING AND HITECH represent the Stars.

2: CASH COWS – Cash Cows represent business units having large market share in a
mature, slow growing industry. In Infosys BFSI: RETAIL represent the Cash Cows.

3: QUESTION MARKS – Question Marks represent having low relative market share and
located in a high growth industry. They require huge amount of cash to maintain or gain
market share. In Infosys LIFESCIENCES AND HEALTHCARE; ENERGY AND
UTILITIES represent Question Marks.

4: DOGS – Dogs represent businesses having weak market shares in low – growth markets.
They neither generate cash nor require huge amount of cash.
LIMITATION OF THE STUDY

TIME: As we were given to make a report on any particular IT Industry, We were

given limited time to complete it.

SECONDARY DATA: As we had limited time to complete it, we used secondary data,
so that we could complete it properly with all sufficient information on time.
 CONCLUSION

In this report we got to know about what is PRODUCT LIFE CYCLE, WHAT ARE THE
DIFFERENT TYPES OF PRODUCTS IT INDUSTRY DEALS WITH and THE
CHALLENGES FACED BY IT SECTOR IN INDIA. As we had to make a report on any
particular IT INDUSTRY, I have chosen INFOSYS.

While making this report on INFOSYS, I got to know about PRODUCT LIFE CYCLE
MANAGEMENT OF INFOSYS, BCG MATRIX OF INFOSYS, OFFERINGS BY
INFOSYS, ANALYTICAL TOOLS OF INFOSYS and INFOSYS LIMITED PORTER FIVE
FORCES ANALYSIS FOR TECHNOLOGY INDUSTRY.

In this report I have a given example of a product produced by INFOSYS. The product is
FINACLE which is a CORE BANKING PRODUCT developed by the Indian Corporation
INFOSYS that provides UNIVERSAL DIGITAL functionality to banks. FINACLE is on the
MATURITY STAGE of the PRODUCT LIFE CYCLE and it also it is the leading reason of
INFOSYS.
 REFERENCES

https://en.wikipedia.org/wiki/Infosys

https://www.infosys.com/newsroom/journalist-resources/Pages/infosyslogo.aspx

https://en.wikipedia.org/wiki/Finacle

https://www.edgeverve.com/wp-content/uploads/2017/03/understanding-financial-product-

life-cycle.pdf

https://www.researchgate.net/figure/BCG-Matrix-for-Infosys_fig3_309616498
NAME : ANUSHKA TARANI

ENROLLMENT NO. : A90904617058

SUBJECT : MARKETING TERM PAPER

TOPIC : ANALYSIS OF PRODUCT LIFE

CYLE OF AN IT FIRM