Business Strategy for ITC Ltd.

Presented By:Akshat Vaid - 91004Ankur Sharma - 91008Harshita Periwal - 91024Karan Khanna - 91026Mudita Maheshwari - 91034Nikhil Soni - 91038

ITC LTD

Established on August 24, 1910 One of India’s biggest private sector companies It sets high standards for its employees and business ITC's corporate strategy aims at creating multiple drivers

of growth

The ITC 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

BUSINESS PORTFOLIO

SWOT ANALYSISSTRENGTHS WEAKNESSES•Brand Image •Distribution Network •Management

•Dependence on Tobacco Revenues•Negative association of tobacco

OPPORTUNITIES THREATS• Rural Market• e-Choupal• Increased spending power of rural sector

• Competition, domestic and International• Increasing tax rates charged on cigarettes

ITC LTD BCG

Market Growth Rate

Relative Market Share

High

Low

High Low

Agri Business

Paper and

Packaging

Hotels

Cigarettes

FMCG: Foods and Healthcare

Infotech

FUTURE STRATEGIES

No new investments in cigarettes New ventures in agri business High degree of promotion Use their distribution network to reach rural

areas Bypass attack through economy and budget

hotels Distribution and pricing of food products Tie ups and acquisitions to boost IT business

FMCG

FMCG - CIGARETTES

CIGARETTES

Wide range, market leader in every segment Tax measures became harsher in 2007 Volume sales declined ITC had to tweak its pricing strategy. Employed

differentiated pricing Future looks promising

o Rising disposable income and lower aversion to smoking

o India has low per capita cigarette consumption compared to the world

BCG MATRIX

FUTURE STRATEGIES

Strategic targeting of women and children Flavored cigarettes Increasing exports Use other businesses to provide high visibility Naming other brands like Wills Lifestyle

FMCG - FOODEntry into branded and packaged food business in 2001 Food business is represented in 4 categories

1. Ready to eat food2. Staples3. Confectionary4. Snack foods

CURRENT SCENARIO

Entering into less competitive or unexplored markets

Distribution network Market differentiation Leveraging technology Variety in offerings Extensive advertising Quality product

BCG BISCUIT INDUSTRY

FUTURE STRATEGIES

Cut down prices in the biscuit domain Penetrate the rural market Low fat chips Promote Conduct public events

ITC - HOTELS

CATEGORIES

ITC Hotels luxury collection Welcom Hotels Fortune Hotels WelcomHeritage

COMPETITORS

SWOT ANALYSIS

STRENGTHS WEAKNESSES•Diversity•Government Support•Market Share

•Slow Implementation•Susceptible to political events

OPPORTUNITIES THREATS•Rising income of consumers

•Increasing competition as a threat for all players

FUTURE STRATEGIES

Invest more to grow more Economy and budget hotels Political contacts Go global – target east Explore real estate Tie ups with airlines Extensive use of internet

BUSINESS ENVIORNMENT

Availability of high quality man power Cost competitiveness Sector on a high growth trajectory

COMPETITORS

SWOT ANALYSIS

STRENGHTHS WEAKNESSES•Human Resource•Management Experience•Government Support•Growing Domestic Market

•Brand India •Security Concerns

OPPORTUNITIES THREATS•Increased Offshoring•Under-penetrated geographies and verticals

•Competition•Reducing Margin•Weakening of US Dollar

FUTURE STRATEGIES

Business in European countries Reduce dependence on USA Strategic acquisitions Get government contracts through controlled pricing Use of already established ITC brand

ITC PAPERBOARDS & SPECIALTY PAPERS

Set up in 1925 Strategic backward integration for ITC cigarette

business Country’s largest convertor of paper board into

packaging Positioning as the first supplier of high value added

packaging Categories :

> Packaging

> Graphic

> Speciality

> Papers

SWOT ANALYSIS

STRENGTHS WEAKNESSES•Market Leader status•World Class Technology•Internationally competitive Quality and Cost

•None as of now

OPPORTUNITIES THREATS•Globalization •Complacency

•New entrants

FUTURE STRATEGIES

Pre emptive defense – Acquire rivals Go global Latest technology

AGRI COMMODITIES & RURAL SERVICES

AGRI COMMODITIES & RURAL SERVICES

Second largest exporter of agri products Domestic sales in excess of Rs 1500 crore e - Choupal initiative Pioneered the cultivation and development of

leaf tobacco in India Future strategies for this segment include

Building trustTraining initiatives

THANK YOU