Root problem:
The company is facing challenges in achieving a competitive year-on-year margin
improvement rate, lagging behind comparable IT companies in India. To address this, the
company is considering acquisitions of smaller organizations specializing in niche
technologies to expand its customer base and increase cross-sell opportunities.
Issue Tree – MECE approach
Segment growth rates – India, US, Europe
Segment Growth - India
15%
22%
14%
18%
20%
BFSI
Manufacturing
Life Sciences & Healthcare
CMT
Retail and Consumer Business
Segment Growth - US
5%
12%
9%
4%
12%
BFSI
Manufacturing
Life Sciences & Healthcare
CMT
Retail and Consumer Business
Segment Growth - Europe
13%
12%
3%
4%
9%
BFSI
Manufacturing
Life Sciences & Healthcare
CMT
Retail and Consumer Business
Recommendations:
1) Investment Focus:
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•
•
•
Allocate resources strategically in high-growth sectors and regions.
US: Emphasize BFSI and Healthcare.
Europe: Prioritize BFSI.
India: Focus on BFSI.
2) Acquisition Strategy:
•
•
•
Acquire smaller organizations with expertise in niche technologies.
Look for companies with a strong customer base to enhance cross-selling
opportunities.
Prioritize acquisitions in the US and Europe to tap into promising sectors.
3) Cost Optimization:
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•
•
Evaluate and optimize employee costs.
Consider renegotiating contractor rates.
Explore cost-effective alternatives for certain roles.
4) Product Portfolio:
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•
Diversify the product portfolio to reduce reliance on a single product (digital
marketing).
Explore R&D to develop new products aligned with market demands.
5) Margin Improvement:
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•
Focus on improving margins in regions with lower margins (e.g., India, Asia
Pacific).
Implement efficiency measures and cost-saving initiatives.
6) Strategic Partnerships:
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•
Consider forming strategic partnerships with established players in target
sectors.
Leverage partnerships for mutual growth and market expansion.
7) Market Research:
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•
Conduct thorough market research to identify emerging technologies and trends.
Ensure acquisitions align with market demands and future technology
landscapes.
8) Employee Skill Enhancement:
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Invest in employee training and skill enhancement programs to stay competitive
in niche technologies.