Business Strategy for ITC Ltd.
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Transcript of Business Strategy for ITC Ltd.
![Page 1: Business Strategy for ITC Ltd.](https://reader036.fdocuments.us/reader036/viewer/2022081418/553e66064a795908388b4901/html5/thumbnails/1.jpg)
Presented By:Akshat Vaid - 91004Ankur Sharma - 91008Harshita Periwal - 91024Karan Khanna - 91026Mudita Maheshwari - 91034Nikhil Soni - 91038
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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
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BUSINESS PORTFOLIO
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SWOT ANALYSISSTRENGTHS 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
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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
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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
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FMCG
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FMCG - CIGARETTES
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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
o Rising disposable income and lower aversion to smoking
o India has low per capita cigarette consumption compared to the world
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BCG MATRIX
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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
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FMCG - FOODEntry into branded and packaged food business in 2001 Food business is represented in 4 categories
1. Ready to eat food2. Staples3. Confectionary4. Snack foods
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CURRENT SCENARIO
Entering into less competitive or unexplored markets
Distribution network Market differentiation Leveraging technology Variety in offerings Extensive advertising Quality product
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BCG BISCUIT INDUSTRY
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FUTURE STRATEGIES
Cut down prices in the biscuit domain Penetrate the rural market Low fat chips Promote Conduct public events
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ITC - HOTELS
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CATEGORIES
ITC Hotels luxury collection Welcom Hotels Fortune Hotels WelcomHeritage
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COMPETITORS
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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
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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
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BUSINESS ENVIORNMENT
Availability of high quality man power Cost competitiveness Sector on a high growth trajectory
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COMPETITORS
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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
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FUTURE STRATEGIES
Business in European countries Reduce dependence on USA Strategic acquisitions Get government contracts through controlled pricing Use of already established ITC brand
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ITC PAPERBOARDS & SPECIALTY PAPERS
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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
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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
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FUTURE STRATEGIES
Pre emptive defense – Acquire rivals Go global Latest technology
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AGRI COMMODITIES & RURAL SERVICES
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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 trustTraining initiatives
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THANK YOU