5.rivalry Among The Existing Players.: Intensity of Rivalry Definition

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 2

5.Rivalry among the existing players.

Intensity of Rivalry definition.


The intensity of rivalry among competitors in an industry refers to the extent to which firms within an
industry put pressure on one another and limit each other’s profit potential. If rivalry is fierce, then
competitors are trying to steal profit and market share from one another. As a result, this reduces profit
potential from all firms within the industry. According to Porter’s 5 forces framework, the intensity of
rivalry among the firms is one of the main forces that shape the competitive structure of an industry. If
the industry consists of numerous competitors, then porter rivalry will be more intense. Whereas if the
competitors are of equal size or market share, then the intensity of rivalry will increase. The intensity of
rivalry will be high if industry’s growth is slow, fixed costs are high. If the products are undifferentiated
or are commodities, then the rivalry will be intense.

Rivals for Infosys are:

1.Tata Consultancy Services.

2.Wipro.

3.HCL.

4.Tech Mahindra.

5.Cognizant.

6.Accenture.

7.Mphasis.

8.LTI

9.Capgemini.

10.IBM.

How Infosys can tackle Intense rivalry among the existing competitors in Technical and System
software industry?

1.By building a sustainable differentiation.

2.By building scale so that it can compete better.

3.Collaborating with competitors to increase the market size rather than just competing for small
market.
Infosys is differentiating through strategic JVs, digital platforms, says CEO Salil Parekh. The statement
from the CEO says that ‘We are doing things differently in several areas. Strategic partnership is one. We
have started to recruit from colleges campuses in Europe, US, and Australia, even as we continue to do
that in India. We have recruited 2,500 graduates in the western market in past 12 months. That is a huge
change in terms of where the business model was 3-4 years ago. We are now building a digital bank for
three of our clients on our digital banking platform. No one else has a digital banking platform. We have
just acquired a mortgage platform from ABN-AMRO. Our play is to push on digital services and platforms
as we build the new Infosys’.

By looking at the company’s agenda it is quite clear that it is working on its different sectors so that it
can differentiate it from those of its rivals. All the three points of tackling intense rivalry among the
competitors can be understood in the CEO’s statement.

You might also like