BCG Matrix for ITC Ltd.Ranjan Varmahttp://financexchange.blogspot.com
StructureAct I Lights! ITC- A BackgroundAct II Camera! The BCG matrixAct III Action! Learning points andconclusions
Act –I [Lights!]Governance structure Strategic supervision Strategic management Executive managementCore values Nation...
Vision & Mission statements Vision: Sustain ITC’s position as one ofIndia’s most valuable corporationsthrough world class...
Business Mix of ITC Ltd.FMCG• Cigarettes• Foods• Lifestyle Retailing• Greeting, Gifting & Stationery• Safety Matches• Agar...
Business Mix (Cont’d)Agri - Business• Agri-Exports• e-Choupal• Leaf TobaccoHotelsGroup Companies• ITC Infotech; etc.
Business wise Sales dataBusiness/ Year Growth%Value (Rs in Crore)2005 2004FMCG-Cigarettes 8.4 10002.54 9230.27FMCG-Others ...
CAGR during FY 2005-2008Category CAGR Growth parametersCigarettes 10.9 % Pricing powerHotels 22.7% Inward traffic, occupan...
Market share of ITC Ltd.Outstanding market leaderCigarettes, Hotels, Paperboards,Packaging and Agri-Exports.Gaining marke...
Segment Dominance Contribution %Revenue PBITCigarettes 70% share 77.0% 87.7%Paper &Packg.Packaging board – No.1 in Asia7.3...
Market attractiveness & Competitivestrength is also important.Act2
Limitations Assumes market growth rate. A firm maygrow the market. A “Dog” may be helping other products. High market s...
The BCG Matrix for ITCLtd.Stars•Hotels•Paperboards/Packaging.•Agri business.?•FMCG- OthersCows•FMCG-CigarettesDogs
Act III - Action- Learning points andconclusions ? - To be handled with care. Strategic forays into emerging high growth...
Learning points (Cont’d) Corporate strategy of creating multipledrivers of growth anchored on its corecompetencies and di...
Upcoming SlideShare
Loading in …5
×

Bcg matrix-for-itc-ltd-3536

1,394 views
1,299 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,394
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Bcg matrix-for-itc-ltd-3536

  1. 1. BCG Matrix for ITC Ltd.Ranjan Varmahttp://financexchange.blogspot.com
  2. 2. StructureAct I Lights! ITC- A BackgroundAct II Camera! The BCG matrixAct III Action! Learning points andconclusions
  3. 3. Act –I [Lights!]Governance structure Strategic supervision Strategic management Executive managementCore values Nation Orientation; Trusteeship; Excellence; Customer focus; respect for people; Innovation
  4. 4. Vision & Mission statements Vision: Sustain ITC’s position as one ofIndia’s most valuable corporationsthrough world class performance,creating growing value for the Indianeconomy and the Company’sstakeholders. Mission: To enhance the wealthgenerating capability of the enterprise ina globalizing environment, deliveringsuperior and sustainable stakeholdervalue.
  5. 5. Business Mix of ITC Ltd.FMCG• Cigarettes• Foods• Lifestyle Retailing• Greeting, Gifting & Stationery• Safety Matches• AgarbattisPaperboards & Packaging• Paperboards & Specialty Papers• Packaging
  6. 6. Business Mix (Cont’d)Agri - Business• Agri-Exports• e-Choupal• Leaf TobaccoHotelsGroup Companies• ITC Infotech; etc.
  7. 7. Business wise Sales dataBusiness/ Year Growth%Value (Rs in Crore)2005 2004FMCG-Cigarettes 8.4 10002.54 9230.27FMCG-Others 85.2 563.39 304.16Hotels 124.1 577.25 257.53Agribusiness 4.2 1780.07 1708.77Paper & pkg. 24.9 1565.31 1253.29Net revenue 12.99 13349.58 11815.04
  8. 8. CAGR during FY 2005-2008Category CAGR Growth parametersCigarettes 10.9 % Pricing powerHotels 22.7% Inward traffic, occupancyPaper 17.2 % Capacity utilization, valueadded productsAgribusiness34.3 % E-choupal, choupal sagar,FMCG-Others60.2 % Fast track, decent share.
  9. 9. Market share of ITC Ltd.Outstanding market leaderCigarettes, Hotels, Paperboards,Packaging and Agri-Exports.Gaining market shareNascent businesses of PackagedFoods & Confectionery, BrandedApparel and Greeting Cards.
  10. 10. Segment Dominance Contribution %Revenue PBITCigarettes 70% share 77.0% 87.7%Paper &Packg.Packaging board – No.1 in Asia7.3% 10.7%Agribusiness1of the largest xportersfrom India7.0% 3.7%Hotels ITC Group ranks No.2 4.3% 5.4%FMCG(Others)20% share of greetingcards market,Aashirvaad atta isNo.1 in brandedsegment4.4% -7.5%
  11. 11. Market attractiveness & Competitivestrength is also important.Act2
  12. 12. Limitations Assumes market growth rate. A firm maygrow the market. A “Dog” may be helping other products. High market share/Growth is not the onlysuccess factor. Linkage between market share andprofitability is questionable.
  13. 13. The BCG Matrix for ITCLtd.Stars•Hotels•Paperboards/Packaging.•Agri business.?•FMCG- OthersCows•FMCG-CigarettesDogs
  14. 14. Act III - Action- Learning points andconclusions ? - To be handled with care. Strategic forays into emerging high growthmarkets. E-Choupal is a transformational strategy. Strong brand building capability will betested.
  15. 15. Learning points (Cont’d) Corporate strategy of creating multipledrivers of growth anchored on its corecompetencies and distribution reach. Embracing difficult and challenging corporatestrategy. (Ex: Paperboards). EHS philosophy: Contribution to the triplebottom line- Economic, Environment andsocial capital.

×