ITC was incorporated in 1910 as Imperial Tobacco Company of India Limited. Over the decades, it has diversified into various businesses including packaging, hotels, paperboards, agriculture, IT, and fast moving consumer goods. ITC aims to be one of India's most valuable corporations through world class performance and creating growing value. Its vision is sustained through various strategic business units. A SWOT analysis identifies its diversified portfolio and market leadership in cigarettes as strengths, and high dependence on tobacco revenues as a weakness. Porter's five forces model finds threat of new entrants and substitute products to be low, but rivalry among competitors to be high. BCG matrix shows cigarettes, food, and IT businesses as cash cows, while hotels and agriculture

2. Presented By:
•AKANKSHA
•SMIDHA
•ARVINDER
•MEGHRAJ
•ANUPAM
•KANIK

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

6. SBUs
FMCG
PAPER
BOARDS
HOTELS
ITC
PACKAG
ING
IT
AGRI
BUSINESS

7. ITC Business Portfolio
FMCG
Cigarettes
Foods
Personal Care
Lifestyle Retailing
,
Education & Stationery
Hotels
Matches
Paper &
Packaging
Incense Sticks
Agri
Business
Information
Technology

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,
Matrix, Boston Consulting Group analysis.
Boston
Box,
Boston
 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