ITC

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It is a PPT on Business Strategy of Conglomerates. Presented by Students of FMG-18A, FORE School Of Management, New Delhi

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ITC

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

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