ITC
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ITC Ltd, established in 1910, is one of India's largest private sector companies focused on multiple growth drivers and maintaining corporate standards. The document outlines ITC's SWOT analysis, diverse business portfolio, and future strategies, including ventures in agri-business and FMCG sectors, while addressing challenges like declining cigarette sales due to tax increases. Future opportunities include targeting rural markets and leveraging technology for growth.
ITC
- 1. Presented By: Akshat Vaid - 91004 Ankur Sharma - 91008 Harshita Periwal - 91024 Karan Khanna - 91026 Mudita Maheshwari - 91034 Nikhil Soni - 91038
- 2. ITC LTD Established on August 24, 1910 One of India’s biggest private sector companies It sets high standards for its employees and business ITC's corporate strategy aims at creating multiple drivers of growth The ITC Vision: Sustain ITC’s position as one of India’s most valuable corporations through world class performance, creating growing value for the Indian economy and the company’s stakeholders
- 4. SWOT ANALYSIS STRENGTHS WEAKNESSES Brand Image Distribution Network Management Dependence on Tobacco Revenues Negative association of tobacco OPPORTUNITIES THREATS Rural Market e-Choupal Increased spending power of rural sector Competition, domestic and International Increasing tax rates charged on cigarettes
- 5. ITC LTD BCG Market Growth Rate Relative Market Share High Low High Low Agri Business Paper and Packaging Hotels Cigarettes FMCG: Foods and Healthcare Infotech
- 6. FUTURE STRATEGIES No new investments in cigarettes New ventures in agri business High degree of promotion Use their distribution network to reach rural areas Bypass attack through economy and budget hotels Distribution and pricing of food products Tie ups and acquisitions to boost IT business
- 7. FMCG
- 9. CIGARETTES Wide range , market leader in every segment Tax measures became harsher in 2007 Volume sales declined ITC had to tweak its pricing strategy. Employed differentiated pricing Future looks promising Rising disposable income and lower aversion to smoking India has low per capita cigarette consumption compared to the world
- 10. BCG MATRIX
- 11. FUTURE STRATEGIES Strategic targeting of women and children Flavored cigarettes Increasing exports Use other businesses to provide high visibility Naming other brands like Wills Lifestyle
- 12. FMCG - FOOD Entry into branded and packaged food business in 2001 Food business is represented in 4 categories Ready to eat food Staples Confectionary Snack foods
- 13. CURRENT SCENARIO Entering into less competitive or unexplored markets Distribution network Market differentiation Leveraging technology Variety in offerings Extensive advertising Quality product
- 15. FUTURE STRATEGIES Cut down prices in the biscuit domain Penetrate the rural market Low fat chips Promote Conduct public events
- 16. ITC - HOTELS
- 17. CATEGORIES ITC Hotels luxury collection Welcom Hotels Fortune Hotels WelcomHeritage
- 18. COMPETITORS
- 19. SWOT ANALYSIS STRENGTHS WEAKNESSES Diversity Government Support Market Share Slow Implementation Susceptible to political events OPPORTUNITIES THREATS Rising income of consumers Increasing competition as a threat for all players
- 20. FUTURE STRATEGIES Invest more to grow more Economy and budget hotels Political contacts Go global – target east Explore real estate Tie ups with airlines Extensive use of internet
- 22. BUSINESS ENVIORNMENT Availability of high quality man power Cost competitiveness Sector on a high growth trajectory
- 23. COMPETITORS
- 24. SWOT ANALYSIS STRENGHTHS WEAKNESSES Human Resource Management Experience Government Support Growing Domestic Market Brand India Security Concerns OPPORTUNITIES THREATS Increased Offshoring Under-penetrated geographies and verticals Competition Reducing Margin Weakening of US Dollar
- 25. FUTURE STRATEGIES Business in European countries Reduce dependence on USA Strategic acquisitions Get government contracts through controlled pricing Use of already established ITC brand
- 26. ITC PAPERBOARDS & SPECIALTY PAPERS
- 27. Set up in 1925 Strategic backward integration for ITC cigarette business Country’s largest convertor of paper board into packaging Positioning as the first supplier of high value added packaging Categories : > Packaging > Graphic > Speciality > Papers
- 28. SWOT ANALYSIS STRENGTHS WEAKNESSES Market Leader status World Class Technology Internationally competitive Quality and Cost None as of now OPPORTUNITIES THREATS Globalization Complacency New entrants
- 29. FUTURE STRATEGIES Pre emptive defense – Acquire rivals Go global Latest technology
- 30. AGRI COMMODITIES & RURAL SERVICES
- 31. AGRI COMMODITIES & RURAL SERVICES Second largest exporter of agri products Domestic sales in excess of Rs 1500 crore e - Choupal initiative Pioneered the cultivation and development of leaf tobacco in India Future strategies for this segment include Building trust Training initiatives
- 32. THANK YOU