Brand Perception of Cognizant

Part
01
of three
Part
01

Cognizant - Audit of Consumer Experiences

According to our research, consumers/companies have been mostly positive about their work with Cognizant. They have left positive reviews of Cognizant as two reviewers said they were pleased with Cognizant's services. Most of the positive reviews were above four stars. Meanwhile, brand value rose consistently from 2014 to 2017 but dipped by 10% in 2018.

POSITIVE REVIEWS

  • A mid-sized company rated Cognizant 4/5 stars, saying that the business is flexible, an excellent partner, and possessed the skill sets they required to swiftly and triumphantly achieve the objective.
  • A reviewer rating Cognizant 3/5 stars had a flawless experience with Cognizant, which granted the best possible support with their operators.
  • Another review rated Cognizant 5 stars, saying the company assisted with comprehending the solution they presented, leading to impeccable delivery and implementation "of the originally forecast business benefits."
  • A financial services company from San Francisco with an ongoing project with Cognizant in 2017 rated it 4/5 stars, saying the group swiftly discerned and resolved a crucial flaw in the intended plan while stating that their training and customizations are considerably below the rates of their competitors.
  • An e-commerce company from San Francisco with an ongoing project with Cognizant in 2017 rated it 4/5 stars, saying they manage a steadfast, competent team during projects and can operate on high-visibility programs from design to initiation. Additionally, the company states that working with just one of Cognizant's resources feels like partnering with the entire business due to its capacity to leverage its combined expertise and knowledge.
  • A media company from New Jersey rated Cognizant 4.5/5 stars, stating that its performance was exceptional regarding ongoing production-support related activities. The company also said Cognizant showed remarkable knowledge of its products and application and trained and retained talent according to requirements.
  • A healthcare company from San Mateo, California, rated Cognizant 4/5 stars. The company praised Cognizant's performance, while referring to its resources as methodical, talented, and diligent.
  • An IT company from Liberty Lake, Washington rated Cognizant 4.5/5 stars, praising their performance. It stated that Cognizant remained on budget and on time while singling out its capacity to obtain resources readily and communications as its strengths.

NEGATIVE REVIEWS

  • A negative review stated that they had to try multiple times to acquire an adequate on-site crew that they could collaborate with effectively.
  • A healthcare company from California who had a project with Cognizant said, "Talented resource availability is a big challenge for them; they should work on that in order to provide good resources in a short time."
  • An IT company from Liberty Lake, Washington, commented that they experienced barriers with communication regarding offshore resources.

ANALYSIS

  • Cognizant had more positive reviews than negative as two reviewers had great experiences Cognizant without any flaws. The majority of the positive reviews for Cognizant were above four stars. Commonly praised themes about Cognizant were its flexibility and that they offered the best support they could. Reviewers also remarked on Cognizant readily providing the necessary resources. Additionally, Cognizant was praised for its quality of service and timeliness.
  • For the negative reviews, the common theme was their talent resources, particularly that of the offshore resources in the areas of availability.

BRAND VALUE ANALYSIS

  • Cognizant was the fourth most valuable IT Services brand in the United States in 2018 with a brand value of $7.761 billion.
  • Cognizant was the fifth most valuable IT Services brand in the United States in 2017 with a brand value of $8.631 billion.
  • It experienced a 10% drop in brand value from 2017 to 2018, but it maintained its AA+ rating.
  • Cognizant had a steady increase in brand value from 2014 until 2017. However, it dropped in 2018.
  • Cognizant was ranked the 82nd most valuable brand (general) in the United States in 2019 with a brand value of $8.704 billion, which was a slight rise over 2018 (ranked 83rd).
  • Revenue plays a vital role in brand valuation, according to a brand finance methodology for calculating brand value. Since March 2017, Cognizant has rejected several deals that offered lower margins. The reason for this is the company shifted focus from growth to improving profitability.
  • Eventually, revenue growth slumped. Cognizant's revenue grew by around 9.15% in April-June 2018 compared to the 10.74% year-on-year revenue growth in January-March of 2017, which possibly resulted in the reduction of brand value.
  • Cognizant was also involved in a bribery scandal in 2017. Gordon Coburn (Cognizant's then-president) Steven Schwartz (then-chief legal officer) were charged for a $2 million bribe directed towards Tamil Nadu government officials. At least $60 million dollars was spent on the investigation, and a fine of $28 million was administered, which probably affected its brand value.

RESEARCH STRATEGY:

To find reviews and information on its brand value, we searched Cognizant's company website, annual reports of independent brand valuation and strategy consultancy, and credible review sites. We discovered the brand value on the annual report of the independent brand valuation and strategy consultancy. However, the reason for the 10% drop was not determined. Since it was calculated, it was difficult to say what exactly led to the decline. So we had to infer and explore for probable causes. To do this, we observed the incidents at the company at the time that might have caused the 10% decrease. We found that there was a revenue decline, along with a bribery case. Ultimately, we determined that these are occurrences that can affect the value of any brand.

Part
02
of three
Part
02

Cognizant Competitive Landscape, Part 1

Cognizant's main competitors based on revenue are Tata Consultancy Services, Wipro Technologies, Accenture, and Infosys. More detailed information is available in the attached spreadsheet. 

TATA CONSULTANCY SERVICES

  • The link to the website is here.
  • Services offered are consulting, information services, information technology, and professional services.
  • The company's average revenue is $21.1 billion.

WIPRO TECHNOLOGIES

  • The link to the website is here.
  • Services offered are cloud data services, consulting, enterprise software, health care, information services, information technology, mobile services, and software.
  • The company's average annual revenue is $8.5 billion.

ACCENTURE

  • The link to the website is here.
  • Services offered are construction, consulting, information technology, and outsourcing.
  • The company's average revenue was $41.0 billion for 2018

INFOSYS

  • The link to the website is here.
  • Services offered are consulting, information services, information technology, IT Management, and software.
  • The company's average annual revenue is $11.8 billion

COGNIZANT

  • The link to the website is here.
  • Services offered are consulting, industrial automation, and software.

RESEARCH STRATEGY

We began by researching Cognizant's competitors by looking into sites such as Crunchbase. We were able to find a list of Cognizant's competitors and then looked at their revenues from previous years and we were able to come up with four competitors based on revenues. Unfortunately, we were unable to provide pricing for their services and products. We looked into each company's website with the hope that we will find this information but there was no page directly quoting prices.
We proceeded to research credible websites and publications such as Live Mint, Tech Circle and others in search of articles revealing the price of services offered by the five companies including Cognizant. This too failed as the information was not available. We went ahead and tried to find clients of each of these companies with the hope that they made public the prices they paid but we did not manage to find their clients. We came to a conclusion that these companies do not make public the prices of services they offer because services offered differ depending on the client.

Part
03
of three
Part
03

Cognizant Competitive Landscape, Part 2

The competitive advantages for Cognizant, Tata Consultancy Services, Wipro Technologies, Accenture, and Infosys are company specific, yet follow similar themes of industry leadership, awards/accolades, innovation, and global reach. These companies' target markets span numerous industries and primarily involve large corporations. The taglines used by these companies, overall, speak to the theme of innovation, though they clearly vary by company. All the requested information about Cognizant, Tata Consultancy Services, Wipro Technologies, Accenture, and Infosys is included in the attached spreadsheet.

Findings

  • Cognizant's competitive advantage involves the strength of its global presence. The company's target market includes Fortune 1000 companies in Europe and North America. The company's tagline is "Digital Solutions to Advance Your Business."
  • Tata Consultancy Services' competitive advantage involves the diversity of its workforce, which spans 46 countries and 149 nationalities and is of value to its clients. The company's target market consists of clients in the "banking, finance and insurance services (BFSI)" industry, as well as the consumer packaged goods/retail, manufacturing, entertainment and media, and telecom industries. The company's tagline is "Experience energy."
  • Wipro Technologies' competitive advantage involves its "Open Innovation approach" which consists of a unique program called Horizon, the company's AI platform called Wipro Holmes, Digital Pods and Innovation Centers that the company operates, and the $100 million Wipro Ventures fund, to name a few. The company's tagline is "Digital, Technology, Business Solutions."
  • Accenture's competitive advantage involves its "six-part Innovation Architecture" which consists of research, ventures, labs, studios, innovation centers, and delivery centers. The company's target market is comprised of Fortune Global 100 companies (92 are clients) and Fortune Global 500 companies (over 75% are clients) from all different industries across the globe. The company's tagline is "New Applied Now."
  • Infosys's competitive advantage involves its standing as "a global leader in next-generation digital services and consulting." The company's target market is clients in the U.S., as they account for approximately 60% of its revenue, the company recently launched an expansion effort to better serve its U.S. market by creating 10,000 jobs in the U.S., and the company is building a $245 million facility in Indianapolis to better serve its U.S. clients. The company's tagline is "Navigate Your Next."

Your research team applied the following strategy:

We found information about the above companies' competitive advantages primarily through their direct websites, including within the about us sections of those sites. The way we identified the companies' target markets was through a combination of information from their direct websites and company profile sites such as Reuters that provided overviews about their operations. We provided the most-specific information available about those target markets. The information that we found about the companies' brand messaging came largely from their websites, including their taglines. However, we also utilized annual reports and outside articles (such as one describing a marketing campaign involving a tagline for Accenture) in compiling that information. Together, this research process provided us with all the requested information about these companies, which is summarized above and included in full in the attached spreadsheet.
Sources
Sources