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Presented By:

•AKANKSHA•SMIDHA•ARVINDER•MEGHRAJ•ANUPAM•KANIK

1910 2008

1910 Incorporation of 'Imperial Tobacco Company of India Limited'. 1925Setup of Packaging & Printing Business1975Launched its Hotels business.1979Entered the Paperboards business1990Set up the Agri Business Division

2000Launched a line of greeting cards under the brand name 'Expressions'

2000Entered the Lifestyle Retailing business with the Wills Sport.2000Spun off ITC Infotech India Limited.

1925 1975 1979 1990 2000

ITC Timeline

VISION:

• Sustain ITC position as one of India most valuable corporation through world class performance creating growing value for the Indian economy & the company’s stakeholder.

one of India most valuable corporation – The Road Ahead

world class performance – The Process of Attainment

creating growing value – The Final Outcome

MISSION:

To enhance wealth generating capability of the enterprise in a globalizing environment, delivering spurious & sustainable stakeholder's value

wealth generating capability – The purpose of Existence

delivering spurious & sustainable stakeholder's value – Final Goal

SBUs

ITC

FMCG

HOTELS

PACKAGING

AGRI BUSINE

SS

IT

PAPER BOARDS

ITC Business Portfolio

FMCG

,

Paper & PackagingHotels Agri

Business

Information Technology

Cigarettes Personal CareFoods Lifestyle Retailing

Education & Stationery Matches Incense Sticks

SWOT Analysis:

Diversified Group

Market Share

Debt Free Brand

Presence Distribution

Channel

Unrelated Diversification

Heavily dependent on Tobacco revenue

Hotel Industry market share

Govt. policies regarding cigarettes

Rural Market

Mergers & Acquisitions

More publicity of Hotel chains

Tough Competition

Government restrictions

FDI in Retail Sector

Taxes

Porter’s Five Force Model

Threat of New Entrants

Bargaining

Power of Buyers

Threat ofSubstituteProducts

BargainingPower ofSuppliers

Riva

lry a

mon

g

Com

petit

ors

Threat of New Entrants:

• New product differentiation is very tough

• Access to Distributions channels is tough

• Capital requirements is very high

• Can’t use Economies of Scale

• High Taxes

Threat of New

Entrants

Bargaining

Power of Buyers

Threat ofSubstituteProducts

Bargaining

Power ofSuppliers

Rivalry among

Competitors

Bargaining power of Suppliers

• Inputs required but in small amount

• Direct access to Distribution channels.Threat of

New Entrants

Bargaining

Power of Buyers

Threat ofSubstituteProducts

Bargaining

Power ofSuppliers

Rivalry among

Competitors

• Degree of dependency is very high

• Smoking has a lot of symbolic and emotional values attached to it

• Research shows that product quality is not important to smokers

• Low switching costs in terms of price.

Bargaining power of Buyers

Threat of New

Entrants

Bargaining

Power of Buyers

Threat ofSubstituteProducts

Bargaining

Power ofSuppliers

Rivalry among

Competitors

• Herbal cigarettes have failed

• Nicotine patch have failed

• Nicotine gums have also failed

• Electronic cigarettes are almost failed

Threat of Substitute products

Threat of New

Entrants

Bargaining

Power of Buyers

Threat ofSubstituteProducts

Bargaining

Power ofSuppliers

Rivalry among

Competitors

• Many competing players

• Price competition continues

• Banned on advertisements for cigarettes.

• Holds the major market share i.e. more than 80%

Rivalry among Competitors

Threat of New

Entrants

Bargaining

Power of Buyers

Threat ofSubstituteProducts

Bargaining

Power ofSuppliers

Rivalry among

Competitors

Porter’s five force model analysis

Threat of new entrants LOW

Bargaining power of Suppliers

Bargaining power of Buyers

Threat of substitute products

Rivalry among Competitors

LOW

LOW

LOW

HIGH

BCG Matrix

BCG Matrix a.k.a. Growth-Share Matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis.

Created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines.

This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.

?

Relative Market Share

Mark

et

Gro

wth

Rate

BCG Matrix of Entire Portfolio

HotelsAgri. BusinessPaperboards & Packaging

FMCG- Foods

FMCG - Cigarettes ITC Infotech

BCG Matrix of FMCG Category wise

Food & Beverages Personal careHousehold Care

Tobacco Lightings