Bcg matrixs for I T C
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Bcg matrixs for I T C

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Bcg matrixs for I T C

Bcg matrixs for I T C

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Bcg matrixs for I T C Bcg matrixs for I T C Presentation Transcript

  • BCG Matrix for ITC Ltd.
  • Structure Act I Lights! ITC- A Background Act II Camera! The BCG matrix Act III Action! Learning points and conclusions
  • Act –I [Lights!]
    • Governance structure
    • Strategic supervision
    • Strategic management
    • Executive management
    • Core values
    • Nation Orientation; Trusteeship; Excellence;
    • Customer focus; respect for people; Innovation
  • Vision & Mission statements
    • 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.
    • Mission: To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.
  • Business Mix of ITC Ltd.
    • FMCG • Cigarettes • Foods • Lifestyle Retailing • Greeting, Gifting & Stationery • Safety Matches • Agarbattis Paperboards & Packaging • Paperboards & Specialty Papers • Packaging
  • Business Mix (Cont’d)
    • Agri - Business • Agri-Exports • e-Choupal • Leaf Tobacco
    • Hotels
    • Group Companies • ITC Infotech; etc.
  • Business wise Sales data Business/ Year Growth % Value (Rs in Crore) 2005 2004 FMCG-Cigarettes 8.4 10002.54 9230.27 FMCG-Others 85.2 563.39 304.16 Hotels 124.1 577.25 257.53 Agribusiness 4.2 1780.07 1708.77 Paper & pkg. 24.9 1565.31 1253.29 Net revenue 12.99 13349.58 11815.04
  • CAGR during FY 2005-2008 Category CAGR Growth parameters Cigarettes 10.9 % Pricing power Hotels 22.7% Inward traffic, occupancy Paper 17.2 % Capacity utilization, value added products Agri business 34.3 % E-choupal, choupal sagar, FMCG-Others 60.2 % Fast track, decent share.
  • Market share of ITC Ltd.
    • Outstanding market leader
    • Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports.
    • Gaining market share
    • Nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.
  • Segment Dominance Contribution % Revenue PBIT Cigarettes 70% share 77.0% 87.7% Paper & Packg. Packaging board – No. 1 in Asia 7.3% 10.7% Agri business 1of the largest xporters from India 7.0% 3.7% Hotels ITC Group ranks No.2 4.3% 5.4% FMCG (Others) 20% share of greeting cards market, 'Aashirvaad' atta is No.1 in branded segment 4.4% -7.5%
  • Market attractiveness & Competitive strength is also important. Act 2
  • Limitations
    • Assumes market growth rate. A firm may grow the market.
    • A “Dog” may be helping other products.
    • High market share/Growth is not the only success factor.
    • Linkage between market share and profitability is questionable.
  • The BCG Matrix for ITC Ltd.
    • Stars
    • Hotels
    • Paperboards/ Packaging.
    • Agri business.
    • ?
    • FMCG- Others
    • Cows
    • FMCG-Cigarettes
    • Dogs
    • Maybe ITC Infotech.
  • Act III - Action- Learning points and conclusions
    • ? - To be handled with care.
    • Strategic forays into emerging high growth markets.
    • E-Choupal is a transformational strategy.
    • Strong brand building capability will be tested.
  • Learning points (Cont’d)
    • Corporate strategy of creating multiple drivers of growth anchored on its core competencies and distribution reach.
    • Embracing difficult and challenging corporate strategy. (Ex: Paperboards).
    • EHS philosophy: Contribution to the triple bottom line- Economic, Environment and social capital.
  •