Businessmodel of Wipro

Customer Segments

Wipro has a mass market business model, with no significant differentiation between customers. The company targets its offerings at organizations of all sizes in all industries. That said, many of its customers fall into the education, financial services, manufacturing, and telecommunications sectors.

Value Proposition

Wipro offers three primary value propositions: innovation, performance, and brand/status.

The company has placed an emphasis on innovation throughout its history. It entered the fledgling information technology industry early, in 1981. It was a pioneer in the marketing of indigenous PCs in 1985. Lastly, it was one of the earliest firms to develop the Offshore Development Center concept.

The company has demonstrated strong performance for its clients. One high-profile case example involves a leading heavy equipment manufacturer. Wipro’s IT services helped it as follows:

• Reduced service operations expenses by 10-15%
• Increased end-owner loyalty and retention by 10-12%
• Achieved 15% savings in service revenues and 5% improvement in margin
• Reduced down time with increased machine activity
• Enabled optimal inventory storage The company has established a strong brand as a result of its success. It has more than 170,000 employees serving customers in over 175 cities in six continents. It has a market capitalization of $21 billion and generated $7.7 billion in revenues in its most recent fiscal year. Lastly, it has won many honors, including the Global Growth Alliances Partner Award by EMC (2015), a Best Outsourcing Thought Leadership Award by The Outsourcing Institute (2015), and placement on the Top 26 Most Innovative Companies list by the Confederation of Indian Industry (2014).

Channels

Wipro’s main channel is its direct sales team, which has offices worldwide. The company promotes its offering through its website, social media pages, summits, forums, symposiums, and conferences.

Customer Relationships

Wipro’s customer relationship is primarily of a self-service nature. Customers use its products and services while having limited interaction with employees. The company’s website features many self-help resources, including articles, reports, case studies, infographics, and videos. That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

Wipro’s business model entails designing, developing, and producing its products and services.

Key Partners

Wipro maintains the following types of partnerships:

Strategic Alliances – The company works with other tech firms for the purpose of creating new solutions and markets. Specific partners include Adobe, Cisco, EMC, Hewlett-Packard Enterprise, IBM, Microsoft, Oracle, Salesforce, and SAP.

Startup Partnerships – The company maintains Wipro Ventures, a corporate venture capital fund that invests in leading-edge startups in areas such as big data, digital, open source, artificial intelligence, cybersecurity, and the Internet of Things (IoT). The fund has $100 million in total.

Academia Partnerships – The company works with academic institutions and industry associations in the United States, Israel, India, and Europe in the areas of electrical and computer engineering. The purpose of the partnerships is to carry out collaborative research on future technologies.

Lastly, Wipro is currently exploring partnerships with consulting firms that can assist its customers by complementing its capabilities in areas such as digital.

Key Resources

Wipro’s main resources are its engineering employees who design and develop its products and services. The company has many important physical resources, including 55 data centers, training centers, and sales/marketing offices in the Americas and 117 similar facilities in Europe, Africa, the Middle East, and Asia. Furthermore, it maintains two manufacturing sites in India. Lastly, it places a high priority on intellectual property, with 184 registered and 900 pending patents.

Cost Structure

Wipro has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Some of the major cost drivers are in the areas of sales/marketing and administration, both fixed costs.

Revenue Streams

Wipro has two revenue streams: revenues generated from the sale of products and services.