3. ITC Timeline
1925
1910
1910
1925
1975
1979
1990
2000
2000
2000
1975 1979
1990
2000
2008
Incorporation of 'Imperial Tobacco Company of India Limited'.
Setup of Packaging & Printing Business
Launched its Hotels business.
Entered the Paperboards business
Set up the Agri Business Division
Launched a line of greeting cards under the brand name 'Expressions'
Entered the Lifestyle Retailing business with the Wills Sport.
Spun off ITC Infotech India Limited.
4. VISION:
• Sustain ITC position as one of India most valuable
corporation through world class performance creating
growing value for the Indian economy & the company’s
stakeholder.
one of India most valuable corporation – The Road Ahead
world class performance – The Process of Attainment
creating growing value – The Final Outcome
5. MISSION:
To enhance wealth generating capability of the
enterprise in a globalizing environment, delivering spurious
& sustainable stakeholder's value
wealth generating capability – The purpose of Existence
delivering spurious & sustainable stakeholder's value – Final
Goal
8. SWOT Analysis:
Diversified
Group
Market
Share
Debt Free
Brand
Presence
Distribution
Channel
Unrelated
Diversification
Heavily
dependent
on Tobacco
revenue
Hotel Industry
market share
Govt. policies
regarding
cigarettes
Rural Market
Mergers &
Acquisitions
More
publicity of
Hotel chains
Tough
Competition
Government
restrictions
FDI in Retail
Sector
Taxes
9. Porter’s Five Force Model
Threat of New
Entrants
Bargaining
Power of
Suppliers
Threat of
Substitute
Products
10. Threat of New Entrants:
• New product differentiation is very tough
• Access to Distributions channels is tough
• Capital requirements is very high
• Can’t use Economies of Scale
• High Taxes
Threat of
New
Entrants
Rivalry
among
Competito
rs
Bargaining
Power of
Suppliers
Bargaining
Power of
Buyers
Threat of
Substitute
Products
11. Bargaining power of Suppliers
• Inputs required but in small amount
• Direct access to Distribution channels.
Threat of
New
Entrants
Rivalry
among
Competito
rs
Bargaining
Power of
Suppliers
Bargaining
Power of
Buyers
Threat of
Substitute
Products
12. Bargaining power of Buyers
• Degree of dependency is
very high
• Smoking has a lot of
symbolic and emotional
values attached to it
• Research shows that
product quality is not
important to smokers
• Low switching costs in terms
of price.
Threat of
New
Entrants
Rivalry
among
Competito
rs
Bargaining
Power of
Suppliers
Bargaining
Power of
Buyers
Threat of
Substitute
Products
13. Threat of Substitute products
• Herbal cigarettes have
failed
Threat of
New
Entrants
• Nicotine patch have
failed
• Nicotine gums have also
failed
• Electronic cigarettes are
almost failed
Rivalry
among
Competito
rs
Bargaining
Power of
Suppliers
Bargaining
Power of
Buyers
Threat of
Substitute
Products
14. Rivalry among Competitors
• Many competing players
• Price competition
continues
Threat of
New
Entrants
• Banned on advertisements
for cigarettes.
• Holds the major market
share i.e. more than 80%
Rivalry
among
Competito
rs
Bargaining
Power of
Suppliers
Bargaining
Power of
Buyers
Threat of
Substitute
Products
15. Porter’s five force model analysis
Threat of new entrants
LOW
Bargaining power of Suppliers
LOW
Bargaining power of Buyers
LOW
Threat of substitute products
LOW
Rivalry among Competitors
HIGH
16. BCG Matrix
BCG Matrix a.k.a. Growth-Share Matrix, Boston Box, Boston Matrix,
Boston Consulting Group analysis.
Created by Bruce Henderson for the Boston Consulting Group in 1970
to help corporations with analyzing their business units or product lines.
Market Growth Rate
This helps the company allocate resources and is used as an analytical
tool in brand marketing, product management, strategic management,
and portfolio analysis.
?
Relative Market Share
17. BCG Matrix of Entire Portfolio
Hotels
Agri. Business
Paperboards & Packaging
FMCG- Foods
FMCG - Cigarettes
ITC Infotech
18. BCG Matrix of FMCG Category wise
Food & Beverages
Personal care
Household Care
Tobacco
Lightings
