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1910 2008
1910 Incorporation of 'Imperial Tobacco Company of India Limited'. 1925Setup of Packaging & Printing Business1975Launched its Hotels business.1979Entered the Paperboards business1990Set up the Agri Business Division
2000Launched a line of greeting cards under the brand name 'Expressions'
2000Entered the Lifestyle Retailing business with the Wills Sport.2000Spun off ITC Infotech India Limited.
1925 1975 1979 1990 2000
ITC Timeline
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
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
ITC Business Portfolio
FMCG
,
Paper & PackagingHotels Agri
Business
Information Technology
Cigarettes Personal CareFoods Lifestyle Retailing
Education & Stationery Matches Incense Sticks
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
Porter’s Five Force Model
Threat of New Entrants
Bargaining
Power of Buyers
Threat ofSubstituteProducts
BargainingPower ofSuppliers
Riva
lry a
mon
g
Com
petit
ors
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
Bargaining
Power of Buyers
Threat ofSubstituteProducts
Bargaining
Power ofSuppliers
Rivalry among
Competitors
Bargaining power of Suppliers
• Inputs required but in small amount
• Direct access to Distribution channels.Threat of
New Entrants
Bargaining
Power of Buyers
Threat ofSubstituteProducts
Bargaining
Power ofSuppliers
Rivalry among
Competitors
• 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.
Bargaining power of Buyers
Threat of New
Entrants
Bargaining
Power of Buyers
Threat ofSubstituteProducts
Bargaining
Power ofSuppliers
Rivalry among
Competitors
• Herbal cigarettes have failed
• Nicotine patch have failed
• Nicotine gums have also failed
• Electronic cigarettes are almost failed
Threat of Substitute products
Threat of New
Entrants
Bargaining
Power of Buyers
Threat ofSubstituteProducts
Bargaining
Power ofSuppliers
Rivalry among
Competitors
• Many competing players
• Price competition continues
• Banned on advertisements for cigarettes.
• Holds the major market share i.e. more than 80%
Rivalry among Competitors
Threat of New
Entrants
Bargaining
Power of Buyers
Threat ofSubstituteProducts
Bargaining
Power ofSuppliers
Rivalry among
Competitors
Porter’s five force model analysis
Threat of new entrants LOW
Bargaining power of Suppliers
Bargaining power of Buyers
Threat of substitute products
Rivalry among Competitors
LOW
LOW
LOW
HIGH
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.
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
Mark
et
Gro
wth
Rate
BCG Matrix of Entire Portfolio
HotelsAgri. BusinessPaperboards & Packaging
FMCG- Foods
FMCG - Cigarettes ITC Infotech
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