Infosys was founde in 1981 by a number of entrepreneurs. Mr. Narayana Murthy is the CEO and the chairman of the company.
Infosys is a software development company that provides information technology (IT) consulting services to local and the international clients.
Infosys could not do any kind of imports and exports as the Indian Government laws were very stringent prior to 1991. Hence the company had to develop software services as a solution to these stringent laws. But the company focused international market for its software products as domestic market held no real opportunity.
Till 1999 the entire business shares was purchased by Mr. Narayana Murthy from the remaining shareholders. It also faced tough times but managed to come out of it and used capital markets for raising the funds making it one of the First marked-price IPOs, Which helped the company boost its growth rate.
Competitive Advantage of Infosys:
1. The main competitive advantages of Infosys was that they were able to keep the ownership ship separated from the management of the company that means the owner did not had the entire control over the management but it had a proper systematic way of managing the company
2. The second one is the transparency in their financial system. The company stated its financial statements clearly and were readily available to anyone who wanted to have a look at it.
AS SHOWN IN EXHBIT 9
As we all know that disclosing certain information that could prove helpful to competitors, or create difficulties with vendors. BUT
“Infosys was the first Indian company to disclose its mandatory and optional disclosures, publish its balance sheet to show value of its brand. This shows transparency of the company which helped them to go for IPO and made it into a success.”
3. People ready to work, Loyal workforce and Hiring process:
The company was able to meet the...