1

SUMMER TRAINING PROJECT REPORT

~SUMMER TRAINING
AT
~HCL INFOSYSTEM

PR0}FCT RFP0RT S0BHlTTFB lN TEF PARTlAl I0lIlllHFNT I0R TEF AWARB
0I TEF BF6RFF 0I TEF
HASTFR 0I B0SlNFSS ABHlNlSTRATl0N
(2009-2011)

M. M. Technical University (Uttar Pradesh)

SUBMITTED TO: SUBMITTED BY:

BR. T0SEAR KANTl RAE0l TYA6l
{BlRFCT0R HBA BFPARTHFNT) HBA-lll SFHFSTFR
ROLL NO. : 0957970021




HLM GROUP OF INSTITUTIONS
11
th
Km. Stone, Delhi-Meerut Road, Ghaziabad-201010
Tel: +91 9999310385, 9999310378, 9999310387
Website: www.hlmgroup.org, E-mail: hlm_11rediffmail.com


2










DECLARATION




I hereby declare that the dissertation entitled the Summer Training` in HCL
INFOSYSTEM , submitted in partial IulIillment oI the requirement Ior the degree oI
Master oI Business Administration to H.L.M GROUP OF INSTITUTIONS,
GHAZIABAD (aIIiliated to U.P. Technical University, Lucknow) is my original work
& not submitted Ior the award oI any other degree, diploma or other similar title oI
prizes.










(RAHUL TYAGI)

3


Acknowledgement


I take this opportunity to thank all the people who helped me with valuable inputs,
guidance and suggestions during my tenure oI project, without which this report
would not have taken its Iinal shape.

I am thankIul TO Mr. CHETAN SIR, Area Sales Manager, Ghaziabad oI HCL
InIosystems Ltd. who spared his valuable time and gave me opportunity to work and
undertake this project in HCL InIosystems Ltd. and guided me throughout this
project.

This acknowledgement would be incomplete without thanking Mr.AKARAM KAHN
AREA SALES MANAGER U.P (NCR) HCL InIosystems Ltd. who helped me in all
possible manner at all possible time during the course oI this project and all the above
I would like to give my heartiest regards to my Institute Iaculty & my internal guide.
MS. PREETY PAL (HLM GROUP OF INSTITUTION) whose timely guidance and
support at crucial junctures made the undertaking oI this project an enriching learning
experience. I would also like to thank all the people who participated in this project
directly or indirectly. Last but not least I would like to thank all my Iriends who have
been a great help in this project with their innovative ideas and suggestions.


RAB0L TYAuI
MBA (2009-20011)
Roll No. : 0957970021





4

Preface


1oJuyx murket xcenurlo lx totully Jlfferent from whut lt hux been u few yeurx
ugo. Conxumerx hux u lot of cholce for every proJuct becuuxe Juy by Juy
compunlex ure comlng up wlth thelr new unJ lnnovutlve proJuctx. Iuter
there wux llmlteJ cholce for moxt of the proJuctx unJ compunlex JlJnt huve
to put much of the effortx to xell thelr proJuctx. But toJuyx xcenurlo lx totully
Jlfferent. Conxumerx huve cholce becuuxe of uvullublllty of vurletlex unJ
optlonx. We cun xuy toJuyx conxumer lx the murket ruler. So lt lx lmportunt
to know hlx buylng behuvlor unJ try to fulflll hlx JemunJ. Compunyx ulm
xhoulJ be cuxtomerx Jellght not cuxtomerx xutlxfuctlon.

1he purpoxe of thlx xummer project lx to know the conxumerx performuncex,
neeJx, text, hlx buylng behuvlor unJ lnxplrutlon fuctorx behlnJ lt. HCI
Infoxyxtemx ItJ how much lx fulfllllng the cuxtomerx neeJx unJ try to
muxlmlze the xulex of perxonul computerx.

1hlx xummer trulnlng wux reully gooJ leurnlng experlence for me. I got
opportunlty to upply the theoretlcul knowleJge to pructlcul uxpectx of xelllng.
Whut problemx cun urlxe unJ the wuy to tuckle the Jlfflculty Jurlng the xulex
ux xmurtly ux poxxlble.

1hlx report contulnx compuny proflle unJ xulex promotlon uctlvltlex uJopteJ
by HCI Infoxyxtemx ItJ. Rexeurch MethoJology, unulyxlx of uctlvltlex
performeJ Jurlng the courxe of thlx project by me, flnJlngx,
recommenJutlonx unJ xuggextlonx, concluxlon unJ beurx blbllogruphy unJ
unnexure glven ln the luxt to glve the reuJerx u gooJ knowleJge of the
content. I hope thlx project report wlll xerve the purpoxe.

5



Contents

Topic: Page No.
Executive Summary 01
Synopsis 02
Objective oI the study 03
Indian Hardware Industry 04-15
Company ProIile 16-21
O About HCL 22-26
O About HCL Frontline Division 27-29

O Achievements 30-33
O Marketing Strategy 34-38
O Products and Services 39-74
Research Methodology 75-
77
O Research Approaches 78-79
O Research Instruments 80
O Research Process 81-82
O Data source 83-84
O Problem IdentiIication 85

O Importance oI the study 86
Tools used Ior Promotional Activities 86

O Description oI Activities 87-
91
Data Presentation and Analysis 92-
101

6

Major Findings
102-103
SWOT Analysis
104-105
Suggestions and Recommendations 106

Limitations oI the study 107

Learning Irom the study
108-109
Conclusion 110
Bibliography 111

Annexure 112
"uestionnaire 113-115

7



CERTIFICATE

This is certiIy that the research report titled 'corporate seIIing and market survey
using for HCL Infosystem is a bonaIied work carried out by rahul tyagi under the
guidance oI Mr . JIJEK ACRAWAL in partial IulIillment Ior award oI the degree
oI Master oI Business Administration (M.B.A) Irom U.P. Technical University,
Lucknow.
This is also certiIy that this report has not been submitted to any other institution or
university Ior IulIillment oI any course/ degree. All the inIormation in this report is
true to the best my knowledge.

RESEARCH GUIDE: PRINCIPLE OF MANAGEMENT:
Mr'I'EK AGRAWAL Dr. Ruchi Srivastva














8















COMPANY CIRTIFICATE















9







P PR RE EF FA AC CE E

Today`s market scenario is totally diIIerent Irom Iew years ago. Consumer has a lot oI
choice Ior every product because day-by-day new companies are coming with their
product. Later there was limited choice Ior mostly products and companies didn`t
have to put much eIIorts to sale their product. But today`s scenario is totally diIIerent.
Consumers have choice because oI availability oI varieties and options. We can say
today`s consumer is the king oI market. So it is important to know his buying
behavior and try to IulIill his demand. Company`s aim should be customer delight not
costumer satisIaction.
HCL InIosystems how much is IulIilling the customer needs and try to sale the
maximum oI personal computer
This dissertation report making was really good learning period Ior me. I got
opportunity to know the corporate selling and market survey .
This dissertation report is part oI course oI MBA program, which is set by

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H.L.M. Group Of Institutions ,Duhai (Ghaziabad) and it is necessary Ior every
student to under zho Ior dissertation project.




ACKNOWLEDGEMENT

The completion oI my training in HCL INFOSYSTEMS with study of HCL
PRODUCTS gives me an opportunity to put across my gratitude to all those who
help me to complete this training successIully and within time my college H.L.M.
Group Of Institutions ,Duhai (Ghaziabad) in particular has been the source oI
inspiration and I will Iorever be in its debts.
I wish to acknowledge my sincere gratitude and thanks to all individuals who have
help and guide me in this training. First oI all I thank god who oIIers me an
opportunity to study in such eulogistic institution.
In particular, I am especially indebted to Mr. Sanjeev Kulshrestha (ACEM) oI HCL
INFOSYSTEMS who were a constant source oI inspiration and guidance at all level
without which this report would not have been possible.
I would be Iailing in my duty iI I don`t express overwhelming sense oI gratitude to all
my teachers at H.L.M. Group Of Institutions ,Duhai (Ghaziabad) Ior there
continuing encouragement and support.

11

I am thankIul to my Iriends who have helped me by oIIering suggestion
or reviewing and commenting on report.






DECLARATION

I, herby declared to the best oI my knowledge and belieI that the summer training
report entitled as 'Corporate Selling & market survey using Ior HCL InIosystem ltd
being submitted to the partial IulIillment oI H.L.M. Group Of Institutions ,Duhai
(Ghaziabad).

I, rahul tyagi hereby declare that all this work purely done by myselI on a primary
data and some use oI Secondary data it is totally Iree Irom any biasness to any
individual or any group oI people.


(rahul tyagi)





12

TABLE OF CONTENTS

%!ICS PAGE No.
1. CO'ER PAGE 1
2. COLLEGE CERTIFICATE 2
3. COMPANY CERTIFICATE 3
4.PREFACE 4
5. ACKNOWLEDGEMENT 5
6. STUDENT DECLARATION 6
7. INDEX 7
8. EXECUTI'E SUMMARY 8
9. COMPANY PROFILE 10
10. RESEARCH OBJECTI'E 71
11. RESEARCH METHODLOGY 73
12. DATA ANALUSIS & INTERPRETATION 77
13.FINDING 88
14. LIMITATION 90
15.CONCLUSION 92
16. SUGGESION AND RECOMMENDATION 94
17. BIBLIOGRAPHY 96
18. ANNEXURES 98



13

EXECUTI'E SUMMARY
Corporate sales is the selling of goods or services where the primary customer is
another business entity.
HCL InIosystems, India's premier inIormation enabling and integration company, has
received the ISO 9001:2000 certiIication speciIies requirements Ior a quality
management system where an organization needs to demonstrate its ability to
consistently provide product and services that meets customer and applicable
regulatory requirements. ISO 9001:2000 also aims to enhance customer satisIaction
through the eIIective application oI the system, including processes Ior continual
improvement oI the system and the assurance oI conIormity to customer and
applicable to the regulatory oI their requirements and the satisIaction to the Iull.
We are happy that HCL InIosystem has been able to provide services oI international
standard to customers across India. This CertiIication will enable us to Iurther excel
on the stiII service targets that we have set Ior ourselves to achieve".HCL Insys
completed acquisition oI FEC Singapore Pvt. Ltd. The Company`s acquisition
strategy, too, maps into building a long-term and sustainable growth path based on the
high-margin, high value-add IT services sector. In Iiscal 2000, the company`s Iocus
was on organic growth as well as acquisitions. The next step was expanding its reach
globally. For this, HCL Insys has set up Iive overseas subsidiaries-in the US, the UK,
Singapore, Australia and Malaysia.
The menu oI HCL Insys global services broadly covers IT consulting and proIessional
services in the area oI vertical applications, technology integration, ERP
implementation and soItware development. This also includes a complete portIolio oI
systems and network services Ior development.

14

15

COMPANY PROFILE

About HCL

HCL is a leading global Technology and IT Enterprise with annual revenues oI US

$4.9 billion. The HCL Enterprise comprises oI two companies listed in India, HCL
Technologies and HCL InIosystems.
The 3 decade old enterprise, Iounded in 1976, is one oI India's original IT garage start
ups. Its range oI oIIerings span R&D and Technology Services, Enterprise and
Applications Consulting, Remote InIrastructure Management, BPO services, IT
Hardware, Systems Integration and Distribution oI Technology and Telecom products
in India. The HCL team comprises 55,000 proIessionals oI diverse nationalities,
operating across 18 countries including 360 points oI presence in India.
HCL has global partnerships with several leading Fortune 1000,including several IT
and Technology majors.
Along with the swiItly growing soItware technology industry, HCL, which was
hitherto known as the pioneer in modern computing made the advent into soItware
development.
HCL's R&D was spun oII as HCL Technologies in 1997 to mark their advent into the
soItware services arena.
Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's
largest BPO operation, and manages the network Ior Asia's largest stock exchange
network apart Irom designing zero visibility landing systems to land the world's most
popular airplane. And this it does across 18 countries and across 360 service locations
in India.

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Products & Services
Product Engineering & Technology Development
The Engineering and R & D services department runs the largest outsourced
engineering center outside the US which is a testimony to the 30 year product
engineering experience. The company oIIers a comprehensive range oI R&D and
Engineering services to component vendors, OEMs, ODMs and IS's across multiple
industry segments and domains.

Infrastructure
HCL InIrastructure Management Division is Iocused on addressing the growing
demand Ior the cost-eIIective management oI technology inIrastructure across
geographically dispersed locations. IT InIrastructure Management is in the HCL
DNA, drawing resources Irom the 30 year pioneering heritage in the area oI
computing, in line with global giants

BPO
Business Processing Outsourcing is heading towards a maturity level where a new
Iorm oI BPO, called TransIormational BPO, is evolving that constitutes Full Process
Outsourcing and Multiple Process Outsourcing . The evolving trend is more Iocused
towards compliance , time-to-market, Iocus on core process, and quality improvement
rather than cost savings.


17

Applications
Leveraging strong partnerships with platIorm / product companies, the team oI
applications proIessionals deliver unprecedented value to Iew oI the largest players in
the Iield oI Financial Services, Retail and Healthcare.

IT Hardware
HCL InIosystems portIolio oI products covers the entire spectrum oI the inIormation
technology needs oI its customers. By virtue oI the immense diversity oI markets and
customers that it address, HCL InIosystems products oIIerings include everything
Irom high end enterprise level servers Ior mission critical applications to multimedia
home computers.

Telecom and Imaging Products and Retail
HCL InIinet covers a range oI telecom and imaging products including enterprise
networking. HCL tied up with Nokia in 1995 with the sale and services oI Nokia
mobile phones in India.

Networking and Network Integration
Network Management involves Network Monitoring oI Bandwidth Utilization,
Network Errors / Collisions, Network Troubleshooting, Day-to-day Network
Operations, Network perIormance monitoring, Tuning Network Operating System
and advise action plan.
Historic Events / Press Room


18

Awards
India's Most PreIerred Personal Computer Brand by CNBC AWAAZ Consumer
Award 2007
India's 'No. 1 PC 'endor' consecutively Ior six years.

HCL among the Top 3 IT companies Ior the last 3 years, D" & IDC,Best Employer
Survey, 'Best employer 2005' with Five Star Ratings

Top 50 Fastest Growing Technology Companies in India & 'Top 500 Fastest Growing
Technology Companies in Asia PaciIic' by 'Deloitte & Touche'

'ineet Nayar appointed to the Board oI Directors at HCL Technologies

Noida, Aug 1, 2008 : HCL Technologies, India`s leading Global Technology and IT
Services company, announced that 'ineet Nayar, CEO, HCL Technologies, has been
appointed to the Board oI HCL Technologies as a Wholetime Director with eIIect
Irom August 1, 2008.

Shiv Nadar, Founder - HCL and Chairman & ChieI Strategy OIIicer, HCL
Technologies said - ''ineet`s appointment to the Board reIlects HCL`s commitment
to nurturing talent, positioning it in key areas oI leadership and building lasting
institutions oI excellence. 'ineet joined HCL - his Iirst and only job, as Senior
Management Trainee in 1985. He created HCL Comnet, and positioned HCL as a
pioneer and industry leader globally in the Remote InIrastructure Management space.

19

He has led HCL`s transIormation strategy, now a Harvard Business School case
study. 'ineet will now continue to bring his leadership skills to bear on HCL`s Iuture
but in a larger context - in developing its vision, governance and strategy beyond the
conIines oI HCL`s business. '

TIMELINE
1976

Hindustan Computer Limited (HCL) born.

1977

Distribution alliance Iormed with Toshiba Ior copiers.

1978
HCL successIully ships in-house designed micro-computer at the same time as Apple.
The Indian computer industry is born.

1980
HCL introduces bit sliced, 16-bit processor based micro-computer.

1983
Indigenously develops an RDBMS, a Networking OS and a Client Server architecture,
at the same time as global IT peers.

1986
HCL becomes the largest IT company in india.

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1988
HCL introduces Iine grined multi-processor Unix-3 years ahead oI 'SUN and 'HP.

1990
Data "uest marks HCL No.1 amongst top ten computer giants.

1991
HCL Ltd. and Hewlett Packard, USA, partner to Iorm HCL-Hewlett Packard Ltd. J'
devlops multi-processor Unix Ior HP-heralds HCL`s entry into contract R&D.

1994
Distribution alliances Iormed with Ericsson Switches and Nokia Cell phones.

1997
HCL InIosystems is Iormed.
HCL`s R&D spun-oII as HCl Technologies- marks advent into soItware services. J'
with Perot Systems, stake divested in 2003.

1999
Initial Public OIIering made by HCL Technologies Ltd.
Formations oI Global Board oI Directors.

2000

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Large contracts won Irom bankers Trust, KLA Tencor , Cisco , GTech, NEC among
others.

2001
J' with Deutsche Bank-DSL soItware Iormed.
HCL BPO Incorporated.
Acquired British Telecom`s Apollo`s contact center in belIast, Northern Ireland. HCL
InIosystems becomes leargest hardware company.

2002
Strong pursuit oI nonlinear strategy to widen services portIolio; several J'`s and
alliances Iormed.
Strategic alliance Iorged with Jones Apparel Group, Inc. A Iortune 500 company.
InIrastructure services division launched to address emerging global needs. SoItware
businessess oI HCL InIosystems and HCL Technologies merged.

2003
Largest BPO order ever outsourced to an Indian BPO Iirm , won Irom British
Telecom .
Landmark deals signed with Airbus and AMD.
HCL manpower crosses the 20,000 mark.

2004
Accorded leader status by Meta Group in OIIshore Outsourcing.
HCL is india`sNo-1 PC 4th year in a row .

22



2005
HCL completes buy-out oI J'`s with Deutsche Bank with British Telecom.
Boeing Inks 787 Dreamliner Design deal with HCL.
HCL InIrastructure ranked No-1 service provider-CMP.

HCL InIosystems Ltd is one oI the pioneers in the Indian IT market, with its origins in
1976. For over quarter oI a century, we have developed and implemented solutions Ior
multiple market segments, across a range oI technologies in India. We have been in
the IoreIront in introducing new technologies and solutions.

In the early 70`s a group oI young and enthusiastic and ambitious technocrats
embarked upon a venture that would make their vision oI IT revolution in India a
reality. Shiv nadir and Iive oI his colleagues got together and 1975 set up a new
company MICROCOMP to start with; they started to capitalize on their marketing
skills. Micro comp marketed calculators and with in a Iew month oI starting
operation, the company was out selling its major competitors.

On 11th August, 1976 HINDUSTAN COMPUTERS LIMITED was incorporated as
joint venture between the entrepreneurs and UPSCE, wit an initial equity oI Rs.1.83
Lacs.
Despite HCL`s rapid success, the company Iaced many challenges in growing and
expanding its business. BeIore long, the company was able to secure a better Iinancial
position Ior itselI and opened two additional oIIices in Calcutta and Mumbai .AIter 8
years, HCL become the largest computer system and services company in India.

23


1986
The company was established on 17th April. The object oI the company is
manuIacturing oI and leading in complete range oI Mini Computers Micro processor
based systems, Electronics Instruments, Micrographic and reprographic equipment
and manuIacturing and marketing oI electronic EPABX systems and electronics
Teleprinters.

1989
The company entered into an agreement with Hewlett Packard oI US Ior the sale and
leaving oI the Super Mini and MainIrame computers to be manuIactured by Hewlett
in India.

1996
The perIormance was adversely aIIected due to rise in dollar exchange rate, tight
liquidity position in the market, political uncertainty coupled with deIerment oI
capital expenditure by the Government Departments.

1997
The Company commissioned its second state-oI-the-art manuIacturing Iacility at
Sedarpet near Pondicherry. The Company has the largest network oI spare-stocking
locations, supported by Test and Repair Centres which reduces the inventory level and
increases the spares availability at any time. To meet critical requirements within 4-5
hours, the company has tied-up with Indian Airlines to deliver spares in major metro
cities.

24


1998
The Company tied-up with Intel Corporation Ior Server technology, resulting in the
introduction oI the InIiniti Global Line range oI PC Servers which incorporate
building blocks Irom Intel and are integrated and tested extensively Ior Indian
condition.

1999
The Board oI Directors unanimously appointed Mr. Ajai Chowdhry as Chairman and
ChieI Executive OIIicer with eIIect Irom 5th November.

2000
HCL has launched a new range oI PCs (Ultima and Elite models) under its Beanstalk
range oI PC's at its Pondicherry plant.The Company entered into an agreement with
US-based In Iocus Ior distribution and technological support oI the latter's data and
video projection products in the country.

HCL InIosystems Ltd. has launched the Nokia proIessional Centre (NPC) in Chennai
as part oI the expansion programme to open Nokia centres in India which will enable
customers to choose the right model and accessories suiting their liIe style.

HCL InIinet, the Internet start-up oI HCL InIosystems, and media group, Asian Age,
have set up a joint venture called Asian Age InIinet.
HCL InIosystems Ltd has launched in India the Swedish major Ericsson's Generation
X Business communication too, "Next Call Centre".


25

HCL InIinet Ltd., the Internet services subsidiary oI HCL InIosystems, has tied up
with UBS Publishers' Distributors Ltd., one oI the largest distributors oI books in the
country, to sell books online through its soon-to-be-launched portal. - HCL
InIosystems has entered into a tie-up with Broad 'ision Ior providing personalized e-
business applications to is clients.

2001
HCL InIosystems and Intel have jointly launched an e-business solutions programme,
targeting new market opportunities in segments such as Internet service providers,
application service providers, banking and Iinance.

HCL InIiNet Ld., the Internet services subsidiary oI HCL InIosystems, has launched
an authenticated payment gateway Ior its portal, www.hclinIinet.com, in association
with Citibank to enable customers to carry out secure transactions online including
buying Internet access.

HCL InIosystems is setting up a managed oII-shore development centre at its Noida
soItware development Iacility Ior Stretch Systems -- the Singapore-based IT systems
and technology developer.

2002
HCL Insys joins hands with Sun Microsystems India to provide end-to-end solutions
to business. HCL Insys says it is the No.1 PC Co in India in 2001.

2003

26

HCL InIsys receives the project to completely automate the 'alue Added Services
('AT) oI Andhra Pradesh.

2004
HCL InIo Iorays into digital entertainment sector
HCL touches one lakh milestone in desktop sales
HCL InIo ties up with Union Bank

2005
Launches Micro Balanced Technology Extended (BTX) Form Factor Ior desktops in
India on February 10, 2005.
HCL InIo unveils PC Ior Rs.12, 99

PURPOSE

'ision Statement

We Shall be the most preferred employer and principal taking leading edge for I%
products and services to the masses through sustained excellence."


Mission Statement

We shall increase the shareholders value by improving the !A% through free cash
flow, reducing the BR cycle, inventory levels, wastage."


27

"uality Policy
Statement:

'We will deliver deIect-Iree products, services and solutions to meet the requirements
oI our external and internal customers the Iirst time, every time.

HCL INFOSYSTEM
HCL InIosystems Limited (HCL Insys) is India`s technology integration company.
Over the years, HCL Insys has positioned its business operations to IulIill its vision
statement: Together we create enterprises oI tomorrow`. The overarching theme Ior
the company`s swiIt progression into the soItware and services arena, in India and
globally, is evolving. SigniIying a state oI constant growth, the evolve theme is visible
in the many ways that HCL Insys has undergone a metamorphosis into becoming a
complete IT solutions company.

Within this, the company has conceptualized the Net. Strategy to address the e-
commerce market. HCL Insys has added both Internet-Iocused solution and skill sets.
For this, it has acquired critical expertise in e-commerce development tools. It has
also developed the ability to integrate e-commerce inIrastructure with enterprise
application such as SAP, CRM and SCM. InIrastructure essentials such as complex
networking, network management, security and post implementation Iacilities
management also Iorm part oI this strategy.



28






LEADERSHIP





$ivNadar
Founder HCL, Chairman and
CEO
HCL Technologies
Ajai Cowdry
Co-Founder HCL, Chairman and
CEO
HCL nfosystems
JVRamamurty
Chief Operating
Officer
HCL nfosystems Ltd




VineetNayar
President: HCL Technologies
Ranjit
President and CEO of the
HCL Technologies (BPO)








29

KEY PARTNERSHIPS

30

Product Offerings
Product Offerings
Not to scale
!maging
Products
Telecom
Products
Laser Printers
!nteractive white boards
%ange of Nono ,
Color
Laser printers
Presentation S
Documentation
Products
!nteractive
Presentation
And %oom
%eservation
All ranges of Nokia
CSN Cellular Phones
PBX, KTS, DECT Cordless,
Call Centre, !P Telephony,
WLAN, Unified Nessaging Telecom Solutions
CSN Nobile phones S
accessories
Copiers,Projectors,Plasma,
Data Walls
Av System
!ntegration

31

One Window for Your
!CT Products, Solutions S Services in !ndia
One Window for Your
!CT Products, Solutions S Services in !ndia
Computing Solutions
Storage Solutions
Networking
%etail Automations Printing S Copying
!maging Solutions
voice S Data Communication
voice S Data Conferencing
vPN S Nanage Enterprise Network

32

INDIAN HARDWARE INDUSTRY AND HCL
INFOSYSTEMS LTD.
The Indian IT and Electronics market in 2002-03 was worth US$ 20.63 billion oI
which US$ 12.7 billion consisted oI soItware. Electronics and IT hardware production
stood at US$ 7.93 billion. Some 3,500 units are engaged in electronics production
manuIacturing goods as diverse as T' tubes, test and measuring instruments, medical
electronics equipment, analytical and special application instruments, process control
equipment, power electronics equipment, oIIice equipment, components etc. Market
researcher IDC estimates that the market-value estimate over next 3 years Ior
hardware products is Rs.75, 000 crores.
The Indian electronics and hardware industry has been lagging behind the impressive
perIormance oI the soItware sector. Most oI the hardware requirements oI the
burgeoning soItware and telecom sectors are met by imports which are about 25.












33

The Ministry oI InIormation Technology, Govt. oI India has estimated that the total
requirement oI hardware and components by 2008 would be in range oI US$ 160
billion and the investment required in the manuIacturing Iacilities would be US$ 16
billion. NASSCOM, the leading IT industry body estimates that to achieve a soItware
export target oI US$ 87 billion in 2008, the hardware requirement would be US$ 50
billion. By Iar the most comprehensive study was carried out by Ernst & Young in
association with MAIT, the hardware industry body in 2002. It estimates that given
the right incentives, India's electronic hardware industry has the potential to reach
US$ 62 billion by 2010, twelve times its existing size with the domestic market
accounting Ior US$ 37 billion and exports oI US$ 25 billion. The major export
opportunities would be in the area oI innovative new products, contract manuIacturing
and design services. This shows that there are large opportunities Ior Indian
companies to increase their strength and grave these opportunities Ior Iuture growth.
HCL InIosystems Ltd is one oI those companies which are working to increase their
network and making innovative new products.
HCL InIosustems Ltd. is currently engaged in selling manuIactured hardware (like
PCs, servers, monitors and peripherals) and traded hardware (like notebooks,
peripherals) to institutional clients as well as retail channel partners. Besides, it oIIers
hardware support services to existing clients through annual maintenance contracts,
net work consulting and Iacilities management.

In 2002-03, HCL`s total hardware turnover was Rs. 10.97 billion, higher by around
24 over the corresponding Iigure Ior 2001-02. OI this, manuIactured hardware
constituted 60, traded hardware 32 and hardware support services 9. The

34

company`s reported operating margins in 2002-03 (including six months oI OA,
telecommunication and soItware businesses) increased to 6.7 Irom 5.9 in 2001-02,
primarily because oI better margins in hardware. While average material costs
declined in 2002-03, the company was able to retain a part oI the margins in its
product realisations. Better margins in hardware resulted in the return on capital
employed (ROCE) Irom hardware increasing Irom 11.9 in 2001-02 to 25.6 in
2002-03.

In the domestic home PC organised sector, HCL InIosystems is the market leader.
Other players include Zenith Computers, IBM, Sun Microsystems, Wipro, Hewlett
Packard and Compaq. Assembled personal computers have a large presence in the
domestic home PC market, accounting Ior a chunk oI the total sales.

















35

PROFESSIONAL SER'ICES
ORGANIZATION
Established in 1994 the PSO is a key growth driver Ior the company with the onset oI

the E-commerce revolution, the PSO Iorms the most critical component oI HCL
insys` strategy.

The PSO operates in 4 major areas oI high level IT consulting, technology integration
projects, turnkey soItware development projects Ior both domestic as well as Ioreign
markets, and Iunctional consulting and implementation services Ior ERP projects.

With the task Iorce oI over 914 soItware specialists 3 soItware export Iactories in
Chennai, Noida and Calcutta and dedicated center oI excellence, the PSO has
garnered domain knowledge oI a wide spread oI industries telecom banking etc. PSO
has added a range oI e- business services in its portIolio namely, development oI
portals, e-comm. Enabled store Ironts enterprise application integration Ior ERP CRM
and SCM solutions. Today the PSO has won the TWIN laurels oI the coveted SEI
(soItware engg institute) Level 4 on the capability maturity model (CMM) scale and
ISO certiIication on its soItware developments processes.






36

SYSTEMS SUPPORT ORGANIZATION


HCL Insys` SSO is the most extensive direct support network in the country. It
operates Irom 151 locations, with a 921 member support Iorce-a unique pool oI
trained manpower, with the collective experience oI working on a broad and diverse
range oI operating systems, hardware systems, middleware, networking and
peripheral products.

Besides its resource pool, the SSO has the inIrastructure and processes to enable it to
deliver a range oI world class support services to a wide cross-section oI industries,
both in India and Overseas. Its services include annual maintenance contracts and
value-added services like network consulting and implementation, Facilities
management, helpdesks, tele-supports and test and repair services.

The SSO is a critical piece in the Company`s e-Commerce tapestry and

implementation complex LANs and WANs.Morover, SSO has honed its knowledge
oI third party networking technologies such as Remote Access Services, ATM and
Frame Relay and its expertise in Iirewall security, network management and
managing Iacilities Ior large customers.







37

DIRECT SALES ORGANIZATION

The direct sales organization (DSO) oI HCL InIosystems is by Iar the most admired
direct sales Iorce in the Indian IT industry. The DSO addresses the vertical markets oI
Iinance, banking, telecom, ISPs and manuIacturing.

It also targets the government, education, power and utilities segments. With a
nationwide Iootprint through a presence in nine major cities, the DSO gives a Iace to
the company. It has been a prime deliverer oI enterprise solution in India and has built
long-standing relationships with customers across industries, over the last two
decades.
The DSO as a Ilag bearer oI the Company, has had a tradition oI creating and opening
up unknown and nascent markets in the country. Be it the markets Ior oIIice
computing way back in 1981, Unix based computers in 1988, or CAD CAM
computing in 1989, the DSO has carried on the tradition oI breaking barriers.

This year saw a series oI successIul initiatives including www.ow, which covered a
broad range oI ISP solutions and Linux expertise (telephonic and email support Ior
Linux, the now Iamous open source operating systems).

The DSO has also been instrumental in making Hewlett Packard a brand oI choice in
the Indian RISC/Unix marketplace. Within HCL InIosystems` Internet thrust, DSO
will oIIer a range oI related services to its customers.


38

OFFICE AUTOMATION

HCL InIosystems` OIIice Automation Division (OA Division) is poised to leverage
the convergence between IT, communication and oIIice automation through its
products and service oIIerings.

The OA Division has an exclusive sales and support partnership with Toshiba
Corporation, Japan Ior its photocopier products. Its products portIolio covers a range
oI other oIIice automation and communication products through alliances with the
world Irom Nokia, Duprints Irom Duplo, and telecommunication solution Irom
Samsung and Ericsson. Its network has 65 independent dealers, who stock and sell
consumables Ior peripherals and devices,

It also oIIers direct Iield support spanning 85 locations, through 15 regional oIIices
and 20 area oIIices assisting 74 service locations. The service is also extended a large
base oI installed products through its Test and Repair Centers (TRCs). These TRCs
are manned by 450 customer engineers and 68 managers located across India, with a
head oIIice at Noida and a Spares TRC at Chennai.

The centers also provide upgrades to existing customers, keeping them abreast oI
cutting edge technology at all time. Finally, the division also oIIers Bring-In-
Maintenance services Ior a range oI products such as Nokia mobile phones and
accessories, and HP peripherals.


39

FRONTLINE

The pioneer in value-added oIIerings to personal computer (PC) users, Frontline
Division is the distribution arm oI HCL InIosystems. The division Iocuses on
providing solutions and value added services to small, and medium corporate, the
oIIice/home oIIice and the home buyer chain oI over 100 HCL Stores, and 205
partners across 100 cities, termed the Support Net.

The Division has also made a signiIicant Ioray into the packaged soItware market by
setting up the InIosoIt Group. Frontline also oIIers innovative support services such as
Tele Support Ior HCL hardware products Irom MicrosoIt, Novell and Linux; and
hardware maintenance services technology upgrades, helpdesk and messaging
solutions.

The division has translated company`s e-Commerce Iocus by setting up shop on the
Web at www.hclshop.com. This is Iast on the way to becoming a virtual one-stop
supermarket. Through its CybercaIe and the InIo Kiosk solution, the Division has
succeeded in spawning a new generation on the net.








40

INFINET

Hcl InIinet Limited is HCL InIosystems` new Internet initiative. HCL InIinet aims to
leverage the immense existing resources oI its parent company, in reach, relationship,
inIrastructure and expertise, to become a dominant Internet service provider in the
country.
Its portIolio oI services includes consumer Internet access, 'irtual Private network
('PN) solution, Application Service Provider (ASP), hosting and co-location solution
and B2B e-commerce exchanges. Besides, HCL InIinet will also host an exciting
horizontal portal at www.hclinIinet.com.

HCL InIinet has set up a state-oI-art ATM / Frame relay network covering 42 cities
across the country and has made signiIicant investments in network management
solution and a 24 hour customer helpdesk. Hence it has the capability to oIIer a
Committed InIormation Rate (CIR) and "uality oI Services ("oS) to its customers.














41


MANUFACTURING

HCL InIosystems` ManuIacturing Organization is the largest manuIacturing
organization in the country with two ISO 9001 certiIied Iactories, Ior computer and
peripherals at Pondicherry.

Recognizing the challenges posed by the changing IT environment, HCL
ManuIacturing has consistently and continuously evolved and improved its processes
and guided the development and transition to the Iastest technology and products Ior
its customers, both internal and external.

As inIormation technology needs mature, the IT industry has witnessed a continual
evolution through a progressive Iiner segmentation oI the markets. Design and
delivery oI solution across diverse hardware platIorms, and the ability to respond to
the rapid penetration and usage oI PCs, Iast changing roadmaps, convergence in
technology, turbulence in supply chain are key determinants Ior success in the current
IT environment.
HCL ManuIacturing has developed a strong combination oI competent people and
technologies. Currently the HCL ManuIacturing Iactories have a capacity to
manuIacture 15,000 PCs per month per shiIt.






42

"UALITY
PHILOSOPHY OF "UALITY

"HCL deliver deIect-Iree products, services and solutions to meet the requirements oI
our external and internal customers, the Iirst time, and every time."

To exist as a market leader in a globally competitive marketplace, organizations need
to adopt and implement a continuous improvement based quality policy.

One oI the key elements to HCL's success is its never-ending pursuit oI superior
quality
in all its endeavors.

HCL INFOSYSTEMS believes in the Total "uality Management philosophy as a
means Ior continuous improvement, total employee participation in quality
improvement and customer satisIaction. Its concept oI quality addresses people,
processes and products.

Over the last 20 years, we have adapted to newer and better "uality standards that
helpedus eIIectively tie "uality with Business Goals, leading to customer and
employe satisIaction.

The history oI structured quality implementation in HCL InIosystems began in the
late 1980`s with a high Iocus on improving quality oI its products by using "C Tools,
FRACAS (Iailure reporting & corrective active systems), concurrent engineering

43

practices including design reviews and rigorous reliability testing to uncover latent
design deIects.

In the early 90`s the Iocus was not merely on quality oI products but also the process
quality systems. As a result HCL were certiIied Ior ISO 9002 by B'"I in 1994 (Ior
quality assurance in production, design/development, production, installation and
servicing).

In early 1995, a major quality initiative was launched across the company based on
Philip B. Crosby`s methodology oI "IPM ("uality Improvement Process
Management). The purpose oI selecting this model was that it not only took into
account the organization`s need/commitment to improve but also the individual`s
need towards better quality in his personal liIe.

Under our "uality Education System program, HCL trains all their Employees on the
basic concepts & tools oI quality. A number oI improvement projects have been
undertaken by the employees themselves where they have identiIied process
deIiciencies or bottlenecks and undertaken Corrective Action Projects (CAPs) to
reduce deIect rates and improve cycle times in various processes including personal
quality.

By 1995 the SoItware Solutions group had already developed a robust quality system.
As HCL execute a number oI projects Ior HCLs overseas clients, HCL has adopted
both ISO 9001 and SEI CMM Level 4 assessed processes. This means that along with
the systems, procedures and requirement trace-ability that ISO 9000 oIIers HCL also

44

works towards optimizing their process eIIiciency. This brings added beneIits to the
clients.

HCL InIosystems` quest Ior excellence has resulted in its adopting the EF"M
excellence model European Foundation Ior "uality Management` Ior gaining quality
leadership & business competitiveness. This model Ialls in line with HCLs belieI that
People, Policy & Strategy and Partnerships & Resources are the enablers and "uality
oI oIIerings to HCLs employees, customer`s and society the motive oI HCLs services.

The tryst Ior continuous quality improvement is always on in HCL InIosystems. HCL
will always strive to maintain high "uality standards, which will help us to IulIill
HCLs Mission to provide world-class inIormation technology solution and services to
enable HCLs customers to serve their customers better.













45

ROLE OF AD'ERTISEMENT

Advertisement plays an impotant impact on consumers to purchase destop pc`s oI
brands.Now a day we see that each and every company endorsing brand ambassadors
so that to attract customers and make their customer base more & more.IBM has
signed SaiI ali khan to endorse his productsShahrukh khan was endorsed by compaq
so that more & more computes can be sold out.

In every nes paper we Iind out the adverstisements oI desktop pc`s oI all brands like
wise in magazines & others one.Companies also palying the promotional game
oIIering some discounts or some giIt hampers on purchase oI every product.




Indian PC Market to Show Double Growth than
the World

PC market in India will likely grow at 20, almost double oI global PC market this
year, as per Gartner, the research Iirm. However, the growth in Indian PC market will
be Iive percentage-points lower in comparison to what it was last year (2008).

Gartner Iorecasts that PC makers will ship 255.7 million units worldwide this year, a
10.5 increase Irom 2006. Revenue, on the other hand, is projected to increase only
4.6 to US$213.7 billion, as average selling prices continue to drop.


46

In 2009, worldwide shipments oI PCs are expected to increase 10.5 Irom last year to
reach 255.7 Million units. On the other hand, the revenues are anticipated to grow just
4.6 and reach US$ 213.7 Billion with continuous decline in average selling prices.
Emerging markets will play a key role in this growth.

'Emerging markets and mobile PCs will continue to provide growth. However,
Ialling average selling prices (ASPs), slowing replacement activity, and Iurther
declines in mature market desk-based PC shipments will keep PC vendors under
pressure to rationalize their operations or exit the market, as per George ShiIIler,
research director with Client PlatIorms Markets Group oI Gartner Dataquest. The
statement appeared in IndiaTimes InIotech on March 21, 2007.
According to IDC, the Indian PC shipments grew 25 in 2006. Commenting on the
India market, Diptarup Chakraborti, principal analyst at Gartner India, said in a
statement published by IndiaTimes InIotech on March 21, 2007, 'The consumer and
the SMB segments will be the major drivers oI the Indian market. High demand Ior
mobile PCs bolstered the growth, overtaking sales in the desk-based segment. In
addition, with a greater Iocus given to e-governance, the government spend is
expected to propel the market Iurther.

As said by IDC, PC shipments in India increased 25 in 2006.
'The consumer and the SMB segments will be the major drivers oI the Indian market.
High demand Ior mobile PCs bolstered the growth, overtaking sales in the desk-based
segment. In addition, with a greater Iocus given to e-governance, the government
spend is expected to propel the market Iurther, said Gartner India`s principal analyst,

47

Diptarup Chakraborti while commenting on Indian market. IndiaTimes InIotech
published this statement on March 21, 2007.
According to IDC, HCL is number one in india in 2008.

As per the RNCOS report 'Portable Electronics Market - Worldwide (2006), 'A
Iundamental move toward mobile computing going on in the market is making
signiIicant contribution to the top line growth.

This research report on 'Portable Electronics Market - Worldwide (2006) provides
extensive research and objective analysis oI the Portable Electronics Market. The
report addresses some interesting issues Ior today`s global business environment such
as major market trends in the mobile electronics industry, opportunities and
challenges Iaced by the industry etc.


SUPPLY SIDE
IDC has just published data Irom an industry supply chain study which models
desktop PCs, Mobile PCs, and x86 servers.Worldwide sales oI PCs reached $200
billion in 2004. This Iigure includes desktop PCs, mobile PCs and x86 servers which
are manuIactured and sold around the world by both branded and unbranded OEMs.
Not only did this industry consume $65 billion oI semiconductors, but it generated at
least $50 billion oI sales Ior the electronics manuIacturing services (EMS) and
original design manuIacturer (ODM) industries.


48

A recent study by IDC modeled the PC supply chain by identiIying and tracking the
quantity oI key PC semiconductors through the transIormation process, starting at the
semiconductor level, Ilowing through various stages oI subsystem and PCBA build,
and Iinishing as completed PC products. By analyzing this model, IDC was able to
track the Ilow oI product through various stage oI build out. By comparing the supply
chains oI various PC OEMs, we were able to identiIy key supply chain partnerships,
strategies and trends in the industry. Some oI the key Iinding oI this study include:

-- The dynamics oI cost pressure and competition in the PC industry have been
driving the industry to increase its outsourcing to the EMS and ODM industry.
Whereas 50 oI the manuIacturing oI mobile PCs were outsourced in 2002, over
85 are being outsourced in 2005.

-- The industry has been migrating Irom an EMS model to a hybrid ODM model to
realize additional cost savings. Whereas several years ago, OEMs would design their
PCs and outsource the manuIacturing to traditional contract manuIacturers, the
predominant model now is to engage manuIacturers who have the manuIacturing
expertise in addition to extensive in-house product design capabilities. In Iact, many
oI these ODMs oIIer complete product designs which they then sell to OEMS along
with manuIacturing services.

-- 5 oI worldwide PC MPUs intended Ior the desktop computer market were
diverted in the supply chain Ior use in mobile PCs and servers in 2004. OI 150
million desktop MPUs that were produced, our model indicates that over 1 million

49

units were diverted Ior use in x86 servers and almost 7 million units were diverted Ior
manuIacturing notebook PCs.

-- Up to an additional 13 oI desktop MPUs were diverted Ior use in upgrades,
repairs, do-it-yourselI (DIY) sales, and other non-PC applications.

-- While the EMS and ODM industry manuIactured virtually 100 oI the
motherboards Ior desktops, it only assembled 67 oI the Iinal desktop computers,
with the balance being built internally by the branded OEMs. The well known
Taiwanese ODMs Asustek, Gigabyte, ECS, and MSI together built over 60 oI these
motherboards.

-- OEMs outsourced over 80 oI the design and manuIacturing oI their notebook
PCs in 2004. The major manuIacturers in this segment were the Taiwanese ODMs
such as "uanta, Compal, and Wistron.

-- OEMs also outsourced about 80 oI their x86 server manuIacturing , which
includes blade servers, rackmounted systems and tower servers. Because oI the
supply chain similarities and supplier relationships with the OEMs, many oI the
ODM/EMS providers Ior desktop and notebook PCs are the same Ior x86 servers.




HCL AD'ANTAGE


50

Staying competitive in today`s dynamic business environment means Iinding new
ways to reduce costs while maximizing the value oI your technology and personal
resources. More than ever, your ability to "do more with less" determines how
successIul your organization will be. That`s whey HCL InIosystem helps you achieve.
By channeling our in-depth expertise gained Irom over 28 years oI IT Domain
experience. We provide a Iull bandwidth oI services speciIically designed to meet
your complete IT needs. And as a single window Ior completing business solutions
wherever you are located.
HCL InIosystems ( HCLI) draws it's strength Irom 27 years oI experience in handling
the ever changing IT scenario , strong customer relationships , ability to provide the
cutting edge technology at best-value-Ior-money and on top oI it , an excellent service
& support inIrastructure.
Today HCL is country's premier inIormation enabling company. It oIIers one-stop-
shop convenience to its diverse customers having an equally diverse set oI
requirements. Be it a large multi-location enterprise, or a small/medium enterprise, or
a small oIIice or a home, HCLI has a product range, sales & support capability to
service the needs oI the customer.
Our strengths can be summarized as:
- Ability to understand customer's business and oIIer right technology.
- Long standing relationship with customers.
- Pan India support & service inIrastructure.
- Best-vale-Ior-money oIIerings.

51

MARKETING STRATEGIES OF EACH
COMPANY TO ATTRACT CUSTOMERS

52

Now a days every companies playing strategies so as to attract customers and increase
revenues and also customer base.Pent-up demand, attractive price points and
economic stability propelled PC growth. PCs are acting as entertainment centres with
T' Iunctionality, supported by the digital sound experience and large screen displays

Some Of The OTHER Strategies They Are Playing

'ista and OIIice 2007 hit the market
MicrosoIt has opened the doors Ior consumers to
purchase its latest Operating System, Windows 'ista, and
OIIice 2007 with a grand launch across 70 countries.
MicrosoIt released the latest version oI its operating
system Windows 'ista and OIIice 2007 Ior corporate
customers in November 2006. Now it has launched the soItware Ior the masses, i.e.
non corporate consumers. The consumer launch took place on 30th January across 70
countries. Windows 'ista is the Iirst major Windows launch by MicrosoIt since the
launch oI Windows XP in 2001.

These products are launched to wow` customers with Ieatures like enhanced security,
better search, improved parental control and an all new interIace. According to Ravi
'enkatesan, Chairman, MicrosoIt India, 'This is the launch oI the decade Ior
MicrosoIt and the biggest Ior us in India, with the design oI this product we have dealt
with the security issues. In India, OEMs including HCL, HP, Lenovo, Sahara, Wipro
and Zenith are launching 'ista compatible PCs.


53

Windows 'ista and OIIice 2007 will be made available to the public in several
editions. The consumer editions are Windows 'ista Ultimate, Windows 'ista Home
Premium, Windows 'ista Home Basic and Windows 'ista Starter. 'ista is being
shipped in 18 languages including Hindi. Extending the Indian language support,
MicrosoIt will have 13 more Indian languages including Telugu and Marathi and
support Ior these is expected by early 2008. OIIice 2007 comes in two consumer
editionsOIIice Home & Student 2007 and OIIice Basic 2007.
'Windows 'ista is released aIter 1 billion hours oI user Ieedback and it has been
tested by millions oI beta testers, says 'enkatesan. In India alone, about 500,000 and
300,000 downloads had taken place oI the beta versions oI Windows 'ista and OIIice
2007 respectively.

About 300 engineers Irom MicrosoIt India were involved in the development and
testing oI this new set oI products. Indian engineers Irom the MicrosoIt India
Development Centre (MSIDC) worked on Ieatures such as 'PN ('irtual Private
Network), RRAS (Routing and Remote Access Services), DHCP (Dynamic Host
ConIiguration Protocol) Ior 'ista. In addition to this, MSIDC has also delivered the
UNIX interoperability and migration technologies. MSIDC OIIice and Business teams
have worked in collaboration with Redmond Ior OIIice Lite and OIIice Business
Accounting. Apart Iorm that, localisation oI OIIice 2007 has largely been conducted
by MSIDC along with local system integrators and linguists.

Neelam Dhawan, Managing Director, MicrosoIt India says, 'Digital technology has
changed the way we work and Windows 'ista will change the PC industry

54

worldwide. MicrosoIt India aims to capture about 18 million consumers with the
help oI 1,500 retailers and 1,800 resellers across 120 cities.

Home users are most vulnerable to viruses and parental control is a much sought aIter
Ieature. Both have been taken care oI by MicrosoIt in the latest avatar oI Windows.
With the help oI parental control, one can completely control a kid`s usage oI the
computer.
Talking about piracy, Doug Hauger, COO, MicrosoIt India says, 'There will be major
diIIerences between the quality oI service received by genuine and non-genuine users.
Genuine users will get the beneIits oI ongoing improvements, use oI the Aero glass
interIace and many other Ieatures, whereas non genuine users will not get these
Iacilities and have a tattoo on their desktops to annoy them continuously.

Windows 'ista is aIIordably priced Irom the perspective oI a 'ista-loaded PC in
India. The starting range oI Genuine Windows 'ista loaded PC is about Rs 22,000.
That said, a standalone version oI 'ista would require a hardware upgrade. The
consumer version oI OIIice 2007 will cost somewhere in excess oI Rs 6,000 which
depends on the edition chosen by the user.
Immediately aIter the launch oI Windows 'ista and OIIice 2007, Neelam Dhawan
launched India`s Iirst Windows 'ista PC at 'u which is called as 'u 'ista Digital
Home`. 'u will oIIer a wide range oI 'ista-enabled PCs to customers including PCs
with 32 LCD screens and RF keyboard and mouse Ior Rs. 75,000. For the moneyed
upper crust, 'u provides 37 LCD PC/T's Ior Rs 1,50,000. For regular customers,
PCs costing Rs 35,000 will be available.


55

Immediately aIter the launch oI Windows 'ista and OIIice 2007, Neelam Dhawan
launched India`s Iirst Windows 'ista PC at 'u which is called as 'u 'ista Digital
Home`. 'u will oIIer a wide range oI 'ista-enabled PCs to customers including PCs
with 32 LCD screens and RF keyboard and mouse Ior Rs. 75,000. For the moneyed
upper crust, 'u provides 37 LCD PC/T's Ior Rs 1,50,000. For regular customers,
PCs costing Rs 35,000 will be available.

As Anirudh Mathuria, President, India Operations, Celstream Technologies puts it,
"The need Ior geographical Ireedom prompted the convergence between wireless and
computing leading to the emergence oI Wireless technol

MERGER & AC"UISITIONS


At the 5-star hotel across the road MicrosoIt chairman and chieI soItware architect
Bill Gates is speaking at one more Iunction on his third trip to India. Regardless oI the
topic, one thing is certainan aggressive sales pitch Ior his company and its present
and Iuture product oIIerings will be closely interwoven into most every point he
makes. That`s been a given at every discourse oI his I`ve attendedbe it to a world
audience at CeBIT in Germany; or in India, to an audience oI politicians or industry
leaders alike. Doesn`t make Ior very proIound speeches, but Iirmly brings home the
point that MicrosoIt, right Irom the very top, is a mega marketing machine.

It would however be Ioolish to dismiss MicrosoIt as a company capable only oI craIty
marketing sophistry (as is the accusation oI many oI its detractors in rival companies
and in the open source movement). Time and again in the last two-and-a-halI decades,
MicrosoIt has proved its mettle by spotting opportunities and then turning itselI

56

inside-out to change course and overtake or eliminate competition in the chosen
segment. It is the ultimate adaptive corporation in the history oI corporationsso
many others have buckled under and cracked when Iar simpler adjustments were
called Ior.

At CeBIT in March 1995, Bill Gates spoke oI the Wallet PC, video-on-demand and
other such esoteric and IanciIul projections into a utopian Iuture. The Internet was
mentioned only in passing. Then, two months later, came the Iamous 'Tidal Wave
memo to his employees in which, among other things, he stated, '...Now I assign the
Internet the highest level oI importance... The God oI desktop computing had
spoken, and in one swoop set in motion an internal machinery that would soon change
the Internet landscape Iorever and transIorm MicrosoIt Irom a desktop soItware
company to a completely Internet-oriented one. This was most visible in the
bludgeoning oI Netscape into submission and near-extinction (MicrosoIt`s Internet
Explorer has an estimated 96 percent share oI the browser market today), but in Iact
also involved massive reorganisation and reIocusing Ior every single product team at
MicrosoIt.

MicrosoIt could be Iaulted Ior its marketing manners, or its methods oI releasing bug-
ridden soItware products in captive markets and Iixing them only later, or its alleged
stiIling oI competition. But one area that`s been above reproach is the company`s
management practices. The corporate and engineering strategy oI Bill Gates has been
to 'pour I" into every problem. So MicrosoIt hires the best, rewards perIormance,
keeps work-groups autonomous, cuts the bureaucracy yet still ensures hands-on top

57

management involvement, keeps morale high, and cultivates a culture that encourages
employees to Iocus on total domination oI the marketplace.

This has been a reasonably good year Ior MicrosoIt, with its .NET strategies
beginning to Iall into place and its XML and SOAP bets already beginning to pay oII.
Simultaneously, the antitrust case has been adroitly conjured away with a little help
Irom the business-Iriendly Bush administration. But what must be keeping Gates
awake at nights is the increasing prominence oI Linux and the open source movement.
He pooh-poohs it all in public, but perhaps is more aware than anybody else that the
day the open source proponents stop selling only an ideology and start oIIering
products that are as easily-usable as they are aIIordable, the computing landscape
could well be transIormed once more. I`m a supporter oI the open source paradigm
and am convinced it will play a signiIicant role in India`s Iuture computing scene, but
I sure don`t think it`s going to put MicrosoIt out oI business anytime soon, and am
very very keen to watch how Gates pours I" into this one.

The other company that one cannot but admire is IBM. The big blue behemoth was
losing billions in the late 80s, struggling to shrug oII its outmoded proprietary
mainIrame culture that was becoming increasingly anachronistic in a downsizing IT
world. A break-up oI the beleaguered giant was the only solution, said analysts and
IBM top management alike. Then came Louis Gerstner Jr, and in less than 10 years,
he 'made the elephant dance, pulling it back Irom the brink in one oI the most
dramatic corporate turnarounds ever. Not with dazzling technology shiIts, but with a
return to business basics oI cutting costs, increasing eIIiciencies, bringing in total

58

customer Iocus, and recreating a uniIied enterprise. One parallel with Bill Gates?
Gerstner`s 'passion Ior winning.

Gerstner kept IBM intact and increased the services orientation with the creation oI
IBM Global Services and a new Iocus on e-business and Web services. This laid the
Ioundation Ior IBM`s new thrust, underlined by current chairman and CEO Sam
Palmisanoa thrust towards computing grids and autonomic systems, heralding an
era oI 'computing on demand where businesses plug in to On-Demand networks and
grids provided by IBM and its partners. IBM`s betting big on this one, all oI $10
billion, and tying it in with its newIound passion Ior interoperability and open
standards, with support Ior the Linux platIorm.

It`s impossible to pitch one particular technology against another and predict right
now which one will come out trumps. But iIas Forrester Research and other analyst
Iirms seem to more or less concurthere`s going to be an 'unshackling oI business
processes Irom rigid technology Ioundations and an increasing abstraction oI the
network hardware and soItware, then both MicrosoIt and IBM seem well-entrenched
at the leading-edge oI this 'Digital Decade and beyond. And in both cases, without
doubt, it`s the management that`s made all the diIIerence.

MARKET TRENDS

One oI the biggest trends, which will be evident in the Indian market, is the Ialling
price oI desktops. Over the last couple oI years prices have come down drastically.
'There are incredible deals available in the market place today. This has helped in
increasing the addressable market. That is why we are getting the next base or larger

59

base oI customers, who can aIIord a PC or will start looking Ior a PC, says Paul. This
has helped the market to grow both in consumer as well the commercial desktop
space. 'In the last Iiscal, the commercial desktop market has shaped up well in Iavour
oI vendors. We have witnessed slow but sure conversion Irom assembled to branded
PCs. It`s a good sign that Ior the Iirst time the industry has seen the assembled PC
market share coming down by 3 percent, says Chaudhry.

SMEs, present in metros as well in non-metro towns, is another segment to be
watched. Most MNC and Indian vendors are Iocusing on the SME space and are
coming out with SME-Iocused products without compromising on quality. However,
in the consumer space, the industry will see more and more entertainment-oriented
Ieatures being included in the normal PC. In the commercial space, the pitch will be in
the Iorm oI security, robustness and multiple levels oI redundancy to ensure
practically 100 percent availability. Technology is changing almost every day and
with that a lot oI convergence is also happening. Keeping this and Iuturistic
technologies in mind, vendors are embedding these into the design oI desktops. Some
oI these technologies that vendors are Iocusing on areHyper Threading, Gigabit
NICs, Dual Channel Memory, security and manageability. A good trend, which we
Iirst saw last year, and which also helped the growth oI the PC market, is that more
and more customers have now started thinking beyond just clock speed, memory or
HDD size, especially in the commercial desktop space. They have now started
considering Iactors like support, security, total cost oI ownership (TCO),
compatibility with existing inIrastructure and Iuture technologies and also
compatibility with various access devices that they have.


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Today, Indian buyers, both in the volume as well as value segments, are concerned
about value Ior money. Apart Irom this, they are also looking at aspects like
robustness oI the product and aIter-sales support. Although in the SOHO/home
segment brand perception still plays a major role, more and more buyers have started
measuring their purchase with the technology oIIered in the PC. These days,
customers educate themselves and are also educated by vendors about the latest
technologies in the market and how they can utilise their system to the maximum. So,
apart Irom price, technology is also playing a major role in desktop buying.
Customers, be it in the consumer or commercial desktop space, have also started
demanding better service levels Irom vendors. And, keeping this in mind, customer
support has become an integral aspect oI PC vendors` strategy. Most vendors have
continuous reviews, processes and enhancements to ensure that support as required by
customers is met. 'Services is a line where the expectation oI the customer keeps on
increasing year aIter year. So, one has to add new Ieatures to service oIIeringsthese
could be onsite support, administration support or asset management support, says
Paul.
CORPORATE SELLING oIIer support through various methods like direct support,
support through dedicated call centres, online support and support though channels.
'endors are also equipping their business partners with knowledge to ensure better
aIter-sales support. 'Service begins Irom the time a customer is looking to buy a PC
to the time he Iinishes using the PC through its liIetime. Support has become very
critical, says SaraI.

Pcs-The Great Enabler

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Increased IT adoption on account oI a plethora oI e-governance initiatives, both
central and state, lower prices and rising demand Irom B and C class cities are some
oI the Iactors that are boosting PC sales.
The emergence oI the SMB segment and the rapid growth oI the PC market in class D
and E cities were two talking points in 2006.

The aIIordability oI computers and the resultant boom in PC adoption has been the
biggest change in the Indian PC market in recent times.

Princy Bhatnagar, GM, Transaction Brand, Lenovo India Pvt Ltd says, 'The market is
growing rapidly. People are becoming more demanding. We have received an
excellent response to the new Ieatures or technologies introduced by us in the last
yearthe Jog Dial, Face Recognition and Dolby Home Theater.

With the price diIIerential between a branded PC and an assembled one dwindling,
brands have the edge now. Rajendra Kumar, Executive 'ice President, HCL
InIosystems Limited says, 'The government`s policy on levies and duties has meant
that organised players are able to oIIer PCs at a price that is comparable to PCs Irom
local assemblers. In terms oI content, the growing availability oI broadband
nationwide has also added thrust to the demand Ior PCs.

Ashutosh 'aidya, 'ice President, Wipro Personal Computing Division (WPC), Wipro
InIotech says, 'People rely on PCs much more than they did beIore. As a result they

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are looking Ior quality products with greater reliability and dependable support
services.

MAIT Iound that 2.96 million PCs and notebooks were sold between April and
September 2006, 19 percent more than in the same period during the last Iiscal.
Consumption oI desktops grew by 8 percent. PC sales are projected to cross 6.5
million units in Iiscal 2008-09
India has one oI the lowest PC penetration rates in the world at 18 per 1,000. Rajan
Anandan, 'ice President & General Manager, Dell India says, 'In comparison China
has 61 per 1,000, Brazil 142 per 1,000 and Russia 155 per 1,000. Although the
industry sold an estimated 5.8 Million PCs in 2008, the size oI the market remains
relatively small when compared to China`s 22 Million plus.

Dell has big plans Ior 2009. Anandan says, India is undoubtedly a key market Ior
Dell, both in the short and long-term. We are setting up a manuIacturing Iacility in
Sriperumbudur, which is a maniIestation oI our ambition to become No. 1 in India in
PCs across all segments.
Storage: Getting Personal
Falling prices coupled with increased capacity have supercharged the
market Ior personal storage products Personal storage Ior the enterprise
desktop or notebook user largely means the hard disk drive. These drives
are not only used in PCs and notebooks, but are also used in servers and
consumer electronic equipment such as MP3 players and digital video recorders.

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Hard drive capacities continue to go up. In 2001, 10 GB drives made the entry Ior
PCs, which jumped to 40 GB by 2003 end. Today, 80 GB hard drives are
commonplace. IDC India states that the hard drive market grew by 22.1 percent in
2004 as compared to 16.8 percent in 2003. In addition, IDC estimates that the market
Ior hard disk drives will grow at a CAGR oI 16.6 percent until 2009. The reason isn't
hard to Iind, PC sales are exploding, making India one oI the Iastest growing storage
markets in the world.

Comments Hari Krishna Pandey, Country Product Manager, Optical Media Solutions,
Samsung India, "With the increased usage oI the PC in daily liIe, there has been a
marked change in personal storage requirements oI the consumer. People are running
data-intensive applications pushing up storage requirements and, in turn, capacities."
Maxtor announced a range oI hard disk drives Ior the Indian market in early 2006.
Says Yogesh Kamat, Country Manager, Indian subcontinent, "We launched Maxtor
OneTouch in capacities ranging Irom 80 to 300 GB." Maxtor even added security
Ieatures that let users protect their data Irom prying eyes.
'endors are also looking at applications beyond the desktop PC by launching micro
hard drives that go into devices such as digital video players. Explains Sharad
Shrivastava, country manager, Seagate, "The adoption oI storage in non-PC
applications such as game-consoles, personal video recorders, set-top boxes and
handheld devices is increasing. We continue to see hard disk drives (HDDs) being
integrated with non-PC applications such as MP3 players."
Seagate launched what it claims to be the world's Iirst 5 GB 1-inch hard drive Ior
handheld devices and a new 400 GB hard disk drive Ior D'R and home entertainment
systems. The company also oIIers the latter as a customisable external D'R storage

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option. According to RawcliIIe oI Western Digital, "We Ioresee non-PC applications
as a big growth area."

Warranties To Boost Consumer Confidence

In a move to boost consumer conIidence, most disk vendors are oIIering extensive
warranties. Last year, Seagate announced a Iive-year warranty on every internal PC,
notebook and enterprise hard disk drive shipped through its distribution and retail
channels. Maxtor Corporation and Western Digital soon Iollowed by announcing a
Iive-year warranty Ior their hard drives as well.
It's The Technology
Technologies that were oIIered only in high-end hard drives are now available on the
desktop Iront. Western Digital plans to oIIer drives that sport enterprise-class
reliability Ior desktops through its Caviar RE (RAID Edition) Serial ATA drives.
Explains David RawcliIIe, MD, Asia PaciIic, Western Digital, "With the Caviar RE,
we decided to put enterprise reliability on desktops Ior RAID systems. It is a drive
engineered to be used in a RAID system, while still oIIering traditional low cost-per-
capacity desktop value."

These drives are available in 120, 160 and 250 GB capacities. Similarly, Seagate's
Serial ATA interIace technology with NCO (Native Command "ueuing) enables the
Barracuda 7200.8 to match the perIormance oI 10,000-rpm SATA drives without

65

sacriIicing the capacity. It is available in 200, 250, 300 and 400 GB (Ior digital video
recorders), along with the option oI choosing a native SATA or Ultra ATA interIace.

Indi an PC Market To Show Doubl e Growt h Than The
Worl d


PC market in India will likely grow at 20, almost double oI global PC market this
year, as per Gartner, the research Iirm. However, the growth in Indian PC market will
be Iive percentage-points lower in comparison to what it was last year (2008).
Gartner Iorecasts that PC makers will ship 255.7 million units worldwide this year, a
10.5 increase Irom 2008. Revenue, on the other hand, is projected to increase only
4.6 to US$213.7 billion, as average selling prices continue to drop.

In 2007, worldwide shipments oI PCs are expected to increase 10.5 Irom last year
to reach 255.7 Million units. On the other hand, the revenues are anticipated to grow
just 4.6 and reach US$ 213.7 Billion with continuous decline in average selling
prices.



'Emerging markets and mobile PCs will continue to provide growth. However,
Ialling average selling prices (ASPs), slowing replacement activity, and Iurther
declines in mature market desk-based PC shipments will keep PC vendors under
pressure to rationalize their operations or exit the market, as per George ShiIIler,
research director with Client PlatIorms Markets Group oI Gartner Dataquest.


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The statement appeared in IndiaTimes InIotech on March 21, 2009.
According to IDC, the Indian PC shipments grew 25 in 2008. Commenting on the
India market, Diptarup Chakraborti, principal analyst at Gartner India, said in a
statement published by IndiaTimes InIotech on March 21, 2009, 'The consumer and
the SMB segments will be the major drivers oI the Indian market.

'The consumer and the SMB segments will be the major drivers oI the Indian market.
High demand Ior mobile PCs bolstered the growth, overtaking sales in the desk-based
segment. In addition, with a greater Iocus given to e-governance, the government
spend is expected to propel the market Iurther, said Gartner India`s principal analyst,
Diptarup Chakraborti while commenting on Indian market. IndiaTimes InIotech
published this statement on March 21, 2009

MARKETING & SELLING STATEGY

A computer at nearly one-third oI current prices is a dream Ior most Indians. And yet,
buyers are not holding their breath Ior these devices. For experience has proved that
expectations are seldom met. However, this time around, those propagating low-cost
computing solutions have taken a diIIerent route. Chris Ann Fichardo elaborates on
the diIIerence .


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The buzz is in the air again. PC manuIacturers are excited. Users are expectant. Even
institutions like the IITs are enthusiastic. The reason: India`s dream oI an aIIordable
PC (priced below Rs 10,000) is ready to hit the market. For nearly a decade this
dream has struggled to become a reality. India Inc. has made many noteworthy
attempts in the past to introduce low-cost computing solutions, but in vain. Be it
Wipro`s Janata PC, iNabling Technologies` e-mail device, iStation, or the much-
talked about handheld device, the Simputerall brilliant concepts that have not quite
made it commercially yet.

So why is the market still bullish about a low-cost computing solution? The answer is
simplebecause the customer still needs an aIIordable computer. None oI the earlier
products have been successIul in Iilling the void.

Rajesh Jain, whose company Netcore is doing groundbreaking work to make possible
the Rs 5,000 PC (5KPC), says that iI the price point oI a PC comes down between Rs
5,000 to 10,000 per user, India has the ability to absorb 10-20 million PCs a year Ior
the next several years. This potential gains Iurther signiIicance when one realises that
the present market size is just two million PCs a year! In the last 20 years the installed
base has barely crossed six million PCs in India.

It`s diIIicult to ignore a goldmine like this, especially when the overall market
conditions are depressed. Numerous vendors have set their sights to tap into the
potential. 'IA has tied up with its partners Priya and eSys, to introduce PCs starting
at Rs 9,990. HCL too is eyeing this segment with the launch oI the Ezeebee brand oI

68

low-priced PCs. Not to be outdone, IBM too has announced that it will soon introduce
a low-cost version oI its desktop PC, at a very competitive price.

Richard Brown, director Ior International Marketing at 'IA attributes this sudden
interest by vendors to the "real growth potential" oI the low-cost PC market. "I
remember Iive to seven years ago when the Iirst $1,000 PC appeared (introduced by
Compaq), people wondered iI the price point was Ior real. And since then there has
been a continuous push down in the price points Ior PCs, which is a sign oI
commoditisation oI the industry. For a long time the industry has resisted moving to
lower price points, and now they are actually seeing that there is demand in that space
and they are buying into it," he says.


PC MARKET: TOP TRENDS


PC market revival may happen in second halI oI this year. Post-Budget PC prices will
remain constant or rise marginally. Indian brands will survive, but they need to decide
on an unambiguous competitive pitch. Thrust into the B & C class towns will be
aggressive, by Indian and MNC players alike. The notebook market will show
signiIicant gains in 2002-03. II you want to know what the Iuture holds Ior the Indian
PC industry, the one Iact you cannot aIIord to ignore is the current slowdown not just
Ialling growth, or a gentle trough, but the horrible spectre oI negative growth.


69

The near panic the industry witnessed in the wake oI this terrible time was reIlected in
the price slashes and bundling oIIers anything to kick start stagnating sales graphs was
acceptable. And that took the PC to almost commodity status in India.

But then, that`s history. And in business, history is not what sells; promises oI a rosier
Iuture do. According to industry association MAIT`s president 'innie Mehta, sales
have picked up in the JFM quarter, which is traditionally a high sales quarter, and as
oI now, they`re hoping that this will be a sustained phenomenon in spite oI a
lacklustre Budget that did almost nothing to push up demand Ior PCs.

Prices Do An About-Turn


Immediately aIter this year`s Budget, most PC vendors said PC prices would remain
constant, and some even pointed out that prices would rise, thanks to increasing
memory prices. That should be one oI the key diIIerentiators between last year and the
Iinancial year ahead PC prices are not likely to come down, and in all probability, will
actually see marginal rises.

Says 'asu Srinivas oI IDC India, 'While the initial response to the slowdown was to
slash prices, when it began to hurt, PC vendors began to take a proIitability approach.
They are now seeking out the more proIitable deals and aiming Ior better prices with
lower volumes.

Another Iactor that will contribute to stable prices is the move by the big distributors
to cut credit periods down the line Irom 30 to 15 days. This move, coming in the wake

70

oI big deIaults among IT channels, will discourage speculative and rash pricing and
margin policies that result in price wars the industry can ill aIIord.


Mobile Computing, Anyone?

Mobile computing is also expected to have some eIIect on the PC market in the
coming year. And in many ways, this may just be the beginning oI things to come in
the Indian PC market.

While low-cost devices such as the much-touted, but almost invisible Simputer are
expected to hit the market in the coming Iiscal, Palm`s entry into India, as well as
Compaq`s heavy push with its Evo portables and iPA" Pocket PCs deIinitely mean
that this segment oI the IT market will have a slight impact on the overall PC market.

DECISION MAKING PROCESS
Decision makers, who are used to depending on their past experiences, must make
decisions and take actions in the rapidly changing world we Iace today. In this
turbulent environment, the ability to successIully view the current situation through
the traditional "good judgment" viewpoint is weakened through increasing external
noise (a multitude oI inIormation sources on multiple topics) and changing.

Paradigms oI how we think about social, cultural, organizational and economic issues,
creating internal noise within our prevailing mental models. These noises skew our

71

perception oI what is really happening in the world. In addition to Iacing this constant
Ilux, leaders are being asked to choose the path to the Iuture as well as to explain
exactly how they plan to get there.




BeIore putting a stake in the sand, leaders begin by developing and testing hypotheses
about possible scenarios, and then eliminate numerous courses oI action until a small
set oI viable choices remain.Once the decision to act is made, the communication oI
the new initiatives begins. The results oI these initiatives usually produce some
expected behavior, but almost always, much to our surprise, our actions produce
unexpected behavior as well, that once again changes our situation. And so it goes.

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CUSTOMER RELATIONSHIP
MANAGEMENT

Customer Relationship Management

CRM is a term that is oIten reIerred to in marketing. However, there is no complete
agreement upon a single deIinition. This is because CRM can be considered Irom a
number oI perspectives. In summary, the three perspectives are:

1. CRM from the Information Technology Perspective.
From the technology perspective, companies oIten buy into soItware that will help to
achieve their business goals. For many, CRM is Iar more than a new soItware
package, the renaming oI traditional customer services, or an IT-based customer
management system to support sales people. However, IT is vital since it underpins
CRM, and has the payoIIs associated with modern technology, such as speed, ease oI
use, power and memory, and so on.

2. CRM from the Customer Life Cycle (CLC) Perspective.
The Customer LiIe Cycle (CLC) has obvious similarities with the Product LiIe Cycle
(PLC). However, CLC Iocuses upon the creation oI and delivery oI liIetime value to
the customer i.e. looks at the products oI services that customers need throughout their
lives. It is marketing orientated rather than product orientated. Essentially, CLC is a
summary oI the key stages in a customer's relationship with an organization.

3. CRM from the Business Strategy Perspective.

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The Business Strategy perspective has most in common with many oI the lessons and
topics contained on this website, and indeed within the Iield oI marketing itselI. The
diagram below shows the Marketing Teacher Model oI CRM and Business Strategy.
Our model contains three key phases - customer acquisition, customer retention and
customer
extension, and three contextual Iactors - marketing orientation, value creation and
innovative IT.

CRM MODEL

A commonly cited definition of CRM is that of CRM (UK) Ltd (2002), as follows:
Customer Relationship Management is the establishment, development, maintenance
and optimization oI long-term mutually valuable relationships between consumers and
organizations. The relationship delivers value to customers, and proIits to companies.
The relationship is supported (but not driven) by cutting edge IT. The business strategy
is based upon the recruitment, retention and extension oI products, services, solutions
or experiences to customers. This is the core oI CRM.


74





EMPLOYEE PURCHASE PROGRAM (EPP)

Employee purchase programs are basically the special scheme or oIIer designed Ior
the employees oI an organization. In this special oIIer is to be given to the employees
oI targeted corporate or organization Ior limited period so that they Ieel themselves
important and purchase a computer under the scheme. Also this is beneIicial Ior the
organizing company to increase its product sales.


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Employee purchase program is very eIIective promotional activity to improve sales
graph.

ORGANISING EPP

Methodology

T Ta ar rg ge et t M Ma ar rk ke et t: :
Corporate & Government oIIices in Noida, Greater Noida and Delhi

I In ns st tr ru um me en nt ts s u us se ed d: :
(1) Collect the database
(a) Through Internet
(b) 'isiting diIIerent sectors in Noida, greater Noida and Delhi.
(c) Through Directory
(d) Calling Yellow pages helpline

(2)Ways taken to approach the customers:-

(a) Telephonic Calls
(b) Cold Calls Made - Direct Marketing
(c) Meeting at corporate oIIices Iixing appointments
(d) Email Blast





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SWOT ANALYSIS OF HCL


STRENGTHS:

HCL`s strengths are many, to mention a few :

a) Global Presence:
O Its collaborations and joint ventures with international companies
such as Perot System, and partnership with world leaders like
Ericsson, Toshiba, Nokia, Oracle and MicrosoIt, enable it to bring
the best technology available world wide to its consumers.
O 24 locations in 16 countries.
b) Fast paced and Ilexible work culture which provides its employees
autonomy to accomplish the task without much pressure Irom the
higher authorities. Thus, employees are motivated to give their best to
the organisation.
c) The core strength oI HCL is the talent and innovativeness oI its people
which enables it to provide the 'right solution at the right time.
d) The mass markets handled through a chain oI dealers, resellers and
retailers which helps bring technology usage closer to the individual. It
has very strong distribution network.
e) Its pool oI competencies : Hardware, SoItware, Training, Networking,
Telecom and System Integration.
f) Ability to understand customer's business and oIIer right technology.

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g) Long standing relationship with customers.
h) Pan India support & service inIrastructure.
i) Best-value-Ior-money oIIerings.

WEAKNESSES:

a) AfLer sales servlce
b) Less promoLlonal campalgns

OPPORTUNITIES:

a) IT industry booming at a rate oI 45 every year.
b) Increasing consumer awareness about IT and its use.
c) Tremendous untapped potential oI IT products in India.
d) Increasing competition.
e) Tie ups with various MNCs enable to extract their core competencies.

THREATS:

a) Local assemblers are biggest menace Ior the company.
b) Entry oI MNCs i.e. IBM, Compaq giving direct competition.
c) Govt. instability has a long term repercussions aIIecting company`s
policies & its growth.

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d) Technological shiIt as a result oI research & development. Daily new
technologies are emerging.

Concluding the S.W.O.T. analysis in words that prosperity lies ahead Ior HCL.
In order to retain its position as India`s No. 1 IT conglomerate, it has to come out with
the state oI art as well as Iuturistic technologies to its consumers well beIore time.











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Research objective Or
Objectives of Study

The main objective oI research is to Iind out the truth which is hidden and which
has not been discovered as yet.
To portray accurately the characteristics oI a particular industry situation , or a
group oI industry.
To gain Iamiliarity with a phenomenon or to achieve new insight into it
To determine the Irequency with which some time occurs or with which it is
associated with something else


Management Objective
To Iuel initiative and Ioster activity by allowing individuals oI action and innovation
in attaining deIined objectives.
People Objective
To help HCL InIosystems top level people share in the company`s success, which
they make possible; to provide job security based on their perIormance; to recognize
their individual achievements and to help them gain oI satisIaction and
accomplishment Irom their work. Core 'alues It is uphold the dignity oI individual It

80

is honor all commitments It is committed to quality, innovation and growth in every
endeavor It is responsible corporate citizens

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RESEARCH PROBLEM
HCL Corporate selling and market share oI HCL and compared to other IT
companies
The business oI HCL and the company through its researchers wants to know
the potential in order to expand and retain its market share

RESEARCH DESIGN


TYPES OF DATA TO BE USED FOR CARRYING OUT OF THE STUDY

The task oI data collection begins aIter a research problem has been deIined and
research design/plan chalked out. While deciding about the method oI data collection
to be used Ior the study, we should keep in mind two types oI data viz. primary and
secondary.

PRIMARY DATA the primary data are those which are collected aIresh and Ior
the Iirst time and thus happen to be original in character.
We have collected primary data Irom government companies during the market
survey through direct communication and Ieedback questionnaire.

DIFFERENT METHODS ARE:
1. Observation method
2. Interview method
3. Through questionnaires

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4. Through schedules

OTHER METHODS WHICH INCLUDE
a) warranty cards
b)distributor audits
c)pantry audits
d)consumer panels
e)using mech
I)through projective techniques
g) depth interview
I)Content analysis




COLLECTION OF
DATA THROUGH "UESTIONNAIRES

This method oI data collection is quite popular, particularly in case oI big enquiries.
It is being adopted by private individuals, research workers, private and public
organizations and even by governments. In this we give questionnaires to the
concern persons with a request to answer to answer the questions and return the
questionnaire. Our questionnaire consists oI a number oI questions printed or typed
in a deIinite order on a set oI Iorms.


83


Secondary data the secondary data, on the other hand, are those Which have
already been collected by someone else and which have already been passed through
the statistical process.
Secondary data are either published or unpublished data we have collected
secondary data Irom internet, journal, magazines, books, newspapers, diaries etc.

Data sources Internet
Magazine
Journal
Books


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85

DATA ANALYSIS &

GRAPHICAL INTERPRETATIOIN


".1. Whicht type oI computers do you use?

It was observed that almost 67 oI the company use branded computers or other
gadgets Ior their business purpose. Hence can be concluded that more company want
branded products as they are not ready to compromise with the quality and services
being provided.

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".2. Which brand computers do you use?
Brand Name
Total no.
HP 7
HCL 14
ACER 13
Other Brand 21

Analysis:- This observation showed that HCL is among the top used brands. Major
part under the pie-chart goes to HCL. So HCL should continue making eIIorts to attract
new market and sustain the existing market.

87


"3. Are you satisIied with your present IT setup?



Analysis:-
It is observed that most oI the company are satisIied with their Present IT in
all sec .oI Noida


Location oI company Response oI company
Sec 3, Noida 70 said yes
Sec 11, Noida 80 said yes
Sec 15, Noida 75 said yes

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".4 Do you have AMC?


Company Having/Having not Total no.
Company place having AMC 30
Company place not having AMC 25

f
According to above graphical data interpretation, that is the most important
places where computer has been used and it has been observation and showed
that less than 60 hospitals have their AMCs. This area can also be
considered

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".5. what is the approximate number oI various IT products in your department?



Desktop Laptops Servers Other IT equipments
Sec 3, Noida 85 40 5 43
Sec 11, Noida 76 36 7 35
Sec 1 5, Noida 60 30 8 40



f
1hls observaLlon showed LhaL mosLly companles are uslng deskLops oLher lL
equlpmenLs and less companles are uslng serves

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". 6. How do you Iind the HCL products?



Reaction about HCL products Total no.
OK 3
Good 12
SatisIactory 19
Outstanding 7
Not tried yet 10



f According to above graph shows that the maximum oI HCL
user are satisIied with the products and services provided. 'ery Iew have not
tried yet HCL on a business scale, but most oI them have an experience about
HCL

91


".7. Do you want to know more about HCL products?

Wanted knowledge about HCL Total Nos
Yes 42
No 13


f
Above graph shows that the observation and the most oI the company (78
company) are interested in knowing more about the brand and have the urge to
buy.

92


".8. Do you require demo Ior any product
Total no.
Interested in demo 24
Not interested in demo 31

f
This observation showed that almost 44 oI the sample wear nterested in
demo and almost 56 company wear not nterested in demo

93


".9.Do you plan to switch over to some other brand in Iuture? II yes then which

Company Brands No oI Company
HP 12
IBM 14
WIPRO 13
LENO'O 10
OTHERS 6


Analysis:-This observation showed that 21 company plan to switch with HP, 25
company plan to switch with IBM , 23 company plan to switch with WIPRO, 18
company plan to switch with LENO'O and 11 company plan to switch with
others brands.

94


".10. what is your annual IT budget?


IT budget No. company
5 lakhs -10 lakhs 10
10 lakhs - 20 lakhs 25
More 20 lakhs 20


f
This observation showed that 15 company has 5 lakes-10 lakes annual IT budget,
45 company has 10 lakes-20 lakes annual IT budget, 37 company has More 20 lakhs
annual IT budget,

95


















96

FINDINGS

With prices oI PCs being slashed, the education sector is expected to see a
high demand Ior personal computers.
It is Iinding that mostly companies in all Sec are using Branded computers or
more company want branded products as they are not ready to compromise
with the quality and services being provided.
It is Iind that most oI the company are satisIied with their Present IT in all sec
.oI Noida
The maximum oI HCL use companies at corporate level are satisIied with the
products and services provided. 'ery Iew have not tried yet HCL on a
business scale, but most oI them have an experience about HCL
The most oI the company (78 company) are interested in knowing more
about the brand and have the urge to buy.
Consumers (companies) are shiIting their Iocus oI PC computing Irom an
average system to one that is closer to a high-end system and upwards.
Companies, which will oIIer aIIordable innovation will gain market share.
SME will continue to be a major segment.
Prices oI computers have been Ialling rapidly
It is Iinding that mostly companies are using desktops compare than Laptops.


97

















98



LIMITATIONS

Every project has some limitations even the researcher came across some limitations
while working on the project which made the analysis a little inappropriate at times.
Some oI the basic limitations Iaced during the research are listed below:
Only limited number oI authorized, companies and other areas where it has
been Iound 55 players was covered in the study.
Most oI the research was based on cold calls, so then visited many places i.e.
authorized and local areas and where it had not responded much.
There was a bias on the part oI the respondents. Companies that were
contacted through telephone at times did not give correct inIormation to the
researcher.
The IT manager or the person heading the IT Department did not have the
rights to give the authorized oIIicial inIormation to people other then the
members oI the oIIicial itselI and the high oIIicials.
At times there was a problem oI non response Irom the hospitals, companies
and other authorized and unauthorized areas which aIIected the result oI the
project being done by the researcher.



99














100

CONCLUSION

Marketing is a very crucial activity in every business organization. Every product
produced within an industry has to be marketed other wise it will remain as unsold
stock, which will be oI no value. I have realized this Iact aIter completion oI my
summer training project. Despite oI various diIIiculties and limitations Iaced during
my summer training project on the topic ' Corporate Selling and market survey
using for HCL Infosystems . I have tried my level best to Iind out the most
relevant inIormation Ior the organization to complete the assignment that was given to
me. During oI my summer training project I have gained several experiences in the
Iield oI sales marketing. I have got the opportunity to meet various companies , which
Iluctuate in diIIerent situation and time. This summer training project has given me
the opportunity to have Iirst experience in the corporate world.

Theoretical knowledge oI a person remains dormant until it is used and tested in the
practical liIe. The training has given to me the chance to apply my theoretical
knowledge that I have acquired in my classroom to the real business world. I have
completed my summer training project in which are involved in its successIul
completion. In spite oI Iew limitations and hindrance in the summer training project I
Iound that the work was a challenge and IruitIul. It gives enough knowledge about the
computers market and the distribution process undertaken by an organization. This
summer training project has enabled my capability in order to manage business
eIIectively and in my career in Iuture.


101
























SUGGESTIONS
&
RECOMMENDATIONS


102

HCL is having large number oI corporate selling partners but it is not supporting
& taking care all oI them equally which results in increasing discontentment
among new channel partners because it`s not possible Ior company to support all
oI them equally. Company should take some positive action against it.

Company executive should visit corporate dealers on regular basis.


They Should pay proper attention towards checking oI various components oI PC
beIore end user delivery. Otherwise it tends towards deIame oI brand name in
comparison to rivals.

Need to expend customer care center as the consumer( company) base oI HCL
InIosystem is increasing with tremendously Iast pace.

Proper attention should be paid Ior advertisement planning otherwise it may lead
to problem Ior dealer as well as Ior company.

Company should tie up with some event management company to organize
various promotional activities like canopy, Carnival.

Company should make policy Ior Iixed end user price Ior all dealers so that Iair
game will be played & dealer would not to compromise on their margin.





103























104

BIBLIOGRAPHY



BOOK
AUTHOR: KOTLER PHILIP
TITLE: MARKETING MANAGEMENT
PLACE OF PUBLICATION: DELHI
PUBLISHER: TATA MC GRAW HILLS
PUBLISHING CO. LTD

WEBSITES:
O www.hcl.in
O www.indiainIoline.com
O www.google.co.in
O www.hclinIosystem.in
O www.altavista.com
O www.khoj.com
O www.yahoosesach.com


105

106

"UESTIONNAIRE


".1. which type oI computers do you use?
a) Branded
b) Assembled
".2. which brand computers do you use?
a) HP b) HCL
c) ACER d) Others Brand
".3.Are you satisIied with your present IT setup?
a) YES b) NO

".4 Do you have AMC?
a.) Yes b) No
".5 What is the approximate number oI various IT products in your department?
a) Desktop b) Laptops
c) Servers d) Other IT equipments
". 6. How do you Iind the HCL products?
a) OK b.) Good
c.) SatisIactory d.) Outstanding
e) Not tried yet


107

".7. Do you want to know more about HCL products?
a.)Yes b.)No

".8. Do you require demo Ior any product?
a.) Interested in demo
b.) Not interested in demo
".9.Do you plan to switch over to some other brand in Iuture? II yes then which
a) HP b) IBM
c) WIPRO d) LENO'O
e) OTHERS
".10. Is your IT departments are capable oI coordinating with your venders?
a) YES b) NO

"11.What is your annual IT budget?
a)5 lakhs -10 lakhs b)10 lakes- 20 lakhs
c) More 20 lakhs


NAME________________ DEPARTMENT________________


SIGNATURE_______________ DESIGNATION________________