A brief Analysis on ITC LTD using porter's five forces, BCG matrix and Pestle analysis.

1. Company Report analysis OF ITC LTD
Tanuj Rathi
A3104615420
B.Com (Hons)
Section F
Amity college of Commerce and Finance
Guided by Swaricha johri

2. INTRODUCTION
ITC is a top most conglomerate company diversified
into different segments like FMCG , hotels, personal
goods, paperboard, packaging, agriculture etc. ITC
was established in 1913 in Kolkata whose ambition is
to endure the value of the nation and the
stakeholders by the tough portfolio of traditional and
Greenfield business.
ITC’s initially focused on the production of tobacco.
In current scenario ITC gives the employment to
32000 peoples and is the larger exporter in the
agriculture.

3. Pestle Analysis of ITC LTD

4. What is pestle analysis?
Pestle is a method used by the marketers to analyze
and monitor the macro and external environment of a
organization , industry and on the basis of which they
define the SWOT of the organization.
PESTEL stands for:
 P – Political
 E – Economic
 S – Social
 T – Technological
 E – Environmental
 L – Legal

5. PESTLE of ITC LTD
Political Factor :-
. Legal cigarettes account for only ~11% of tobacco
consumed in India due to a punitive taxation and
discriminating regulatory regime.
 Smuggling in tobacco products.
 Cigarette taxes in India are 14 times higher than USA, 9
times higher than Japan, 7 times higher than China, 5 times
higher than Australia and 3 times higher than Malaysia and
Pakistan.

6. .
Economic :-
 Enduring value for the nation provides it the inspirational
motive force to sustain growing shareholder value.
 Contributing over 20000 employment from last decade,
directly and indirectly 5 millions.
 Supporting the competitiveness of 120 vendors of SME
enabling them for best practice and superior capabilities

7. Social Factors :-
 Social Investment program spreaded over 26 states and
covering 166 districts.
 Primary education intiative for over 4,70,000 students
 Empowering Farmers by the e choupal initiative.
 Over 50k Sustainable livelihoods for women.
 ITC’s Skilling & Vocational Training Programme has, so far,
trained over 31,000 youths and plans to cover 10,000
youths annually.

8. Technological Factors :-
 ITC's Lifestyle Business is a contemporary master Design
Facility at Manesar, Gurgaon.
 Agriculture-sciences R&D team continues evaluating and
introducing several germ-plasm lines.
 Hygienic and food products in hotels as well as in packed
category tested by HACCP
 Collaborating with global hands for increasing more agri
cultivation in future.

9. Environmental Factors:
• Sequester greenhouse gases to be reduced by
aforestation.
• 78% waste reused
• Rain water harvesting & treatment of waste water.

10. BCG MATRIX analysis of ITC LTD
 The stars of ITC : Paper board and packaging, Agri
business and hotels. ITC’s Paperboards and Specialty
Papers Division is India’s biggest, mechanically progressed
and most eco-accommodating, paper and paperboards
business.
 Cash Cows of ITC : FMCG cigarettes ITC Ltd offers 80
percent of the cigarettes in India, where 275 million
individuals utilize tobacco items .
 Question marks : FMCG food products Bingo is facing
tuf competition from Lays.
 Dogs : Infotech centered around making esteem through
Domain, Data, Digital, Design and Differentiated Delivery

11. ITC Analysis on porters five forces model

12. Threat of new entrants :-
 ITC in dairy products and hospitality, has a threat from the
existing AIMs, apollo, fortis and Amul, mother dairy.
 High Capital is needed to spread the product.
 Strong Distribution Channel to be needed.
 Government policy and high taxes.

13. Bargaining Power of suppliers (LOW)
 Taste of customer is in the hand of ITC not on suppliers
 Switching off to other supplier with similar quality is not a
big deal for ITC
 For products of paper, food small items are required which
is not stagnant to a particular supplier.

14. Bargaining powers of buyer
 ITC provides competitive products with similar prices as
compare to other.
 A leading seller of cigarettes.
 Paper kraft and the classmates products of ITC are
expensive as compare to others brands.

15. Rivalry among exiting
competitors
 A new entrant Patanjali, existing like P&G, HUL, are are
the tuf competitors of the company.
 A competitive prices are provided to the customers.
 Cigarette producer with high quality from last 100 years.
 On the basis of safety, prices and taste customers have their
intellectual choice to shift, otherwise no chances.

16. Substitutes
 Herbal and Ayurvedic Products from Dabur, Himalaya.
 Instead of ITC Hotels; OYO rooms or CCD, MC donalds
could be the main preference for business meets for
customers.
 Still now, Customer prefers ‘Chaki Aatta’.
 self made juices are more reliable then ‘Be natural’.