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!] <ul><li>Governance structure </li></ul><ul><li>Strategic supervision </li></ul><ul><li>Strategic managem...
Vision & Mission statements <ul><li>Vision: Sustain ITC’s position as one of India’s most valuable corporations through wo...
Business Mix of ITC Ltd. <ul><li>FMCG  •  Cigarettes  •  Foods  •  Lifestyle Retailing  •  Greeting, Gifting &    Statione...
Business Mix (Cont’d) <ul><li>Agri - Business •  Agri-Exports •  e-Choupal •  Leaf Tobacco </li></ul><ul><li>Hotels </li><...
Business wise Sales data Business/ Year Growth % Value (Rs in Crore) 2005 2004 FMCG-Cigarettes 8.4 10002.54 9230.27 FMCG-O...
CAGR during FY 2005-2008 Category CAGR Growth parameters Cigarettes 10.9 % Pricing power Hotels 22.7% Inward traffic, occu...
Market share of ITC Ltd. <ul><li>Outstanding market leader  </li></ul><ul><li>Cigarettes, Hotels, Paperboards, Packaging a...
Segment Dominance Contribution % Revenue  PBIT Cigarettes 70% share 77.0% 87.7% Paper &  Packg. Packaging board – No. 1 in...
Market attractiveness & Competitive strength is also important. Act 2
Limitations  <ul><li>Assumes market growth rate. A firm may grow the market.  </li></ul><ul><li>A “Dog” may be helping oth...
The BCG Matrix for ITC Ltd. <ul><li>Stars </li></ul><ul><li>Hotels </li></ul><ul><li>Paperboards/  Packaging. </li></ul><u...
Act III - Action-  Learning points and conclusions <ul><li>? -  To be handled with care. </li></ul><ul><li>Strategic foray...
Learning points (Cont’d) <ul><li>Corporate strategy of creating multiple drivers of growth anchored on its  core competenc...
 
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Bcg matrixs for I T C

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  • Bcg matrixs for I T C

    1. 1. BCG Matrix for ITC Ltd.
    2. 2. Structure Act I Lights! ITC- A Background Act II Camera! The BCG matrix Act III Action! Learning points and conclusions
    3. 3. Act –I [Lights!] <ul><li>Governance structure </li></ul><ul><li>Strategic supervision </li></ul><ul><li>Strategic management </li></ul><ul><li>Executive management </li></ul><ul><li>Core values </li></ul><ul><li>Nation Orientation; Trusteeship; Excellence; </li></ul><ul><li>Customer focus; respect for people; Innovation </li></ul>
    4. 4. Vision & Mission statements <ul><li>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. </li></ul><ul><li>Mission: To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value. </li></ul>
    5. 5. Business Mix of ITC Ltd. <ul><li>FMCG • Cigarettes • Foods • Lifestyle Retailing • Greeting, Gifting & Stationery • Safety Matches • Agarbattis Paperboards & Packaging • Paperboards & Specialty Papers • Packaging </li></ul>
    6. 6. Business Mix (Cont’d) <ul><li>Agri - Business • Agri-Exports • e-Choupal • Leaf Tobacco </li></ul><ul><li>Hotels </li></ul><ul><li>Group Companies • ITC Infotech; etc. </li></ul>
    7. 7. 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
    8. 8. 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.
    9. 9. Market share of ITC Ltd. <ul><li>Outstanding market leader </li></ul><ul><li>Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports. </li></ul><ul><li>Gaining market share </li></ul><ul><li>Nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards. </li></ul>
    10. 10. 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%
    11. 11. Market attractiveness & Competitive strength is also important. Act 2
    12. 12. Limitations <ul><li>Assumes market growth rate. A firm may grow the market. </li></ul><ul><li>A “Dog” may be helping other products. </li></ul><ul><li>High market share/Growth is not the only success factor. </li></ul><ul><li>Linkage between market share and profitability is questionable. </li></ul>
    13. 13. The BCG Matrix for ITC Ltd. <ul><li>Stars </li></ul><ul><li>Hotels </li></ul><ul><li>Paperboards/ Packaging. </li></ul><ul><li>Agri business. </li></ul><ul><li>? </li></ul><ul><li>FMCG- Others </li></ul><ul><li>Cows </li></ul><ul><li>FMCG-Cigarettes </li></ul><ul><li>Dogs </li></ul><ul><li>Maybe ITC Infotech. </li></ul>
    14. 14. Act III - Action- Learning points and conclusions <ul><li>? - To be handled with care. </li></ul><ul><li>Strategic forays into emerging high growth markets. </li></ul><ul><li>E-Choupal is a transformational strategy. </li></ul><ul><li>Strong brand building capability will be tested. </li></ul>
    15. 15. Learning points (Cont’d) <ul><li>Corporate strategy of creating multiple drivers of growth anchored on its core competencies and distribution reach. </li></ul><ul><li>Embracing difficult and challenging corporate strategy. (Ex: Paperboards). </li></ul><ul><li>EHS philosophy: Contribution to the triple bottom line- Economic, Environment and social capital. </li></ul>

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