BCG Matrix for ITC Ltd.

Structure Act I Act II Act III Lights! ITC.A Background Camera! The BCG matrix Action! Learning points and conclusions .

Innovation . Excellence. Customer focus. respect for people. Trusteeship.Act ²I [Lights!]      Governance structure Strategic supervision Strategic management Executive management Core values Nation Orientation.

. creating growing value for the Indian economy and the Company¶s stakeholders. Mission: To enhance the wealth generating capability of the enterprise in a globalizing environment. delivering superior and sustainable stakeholder value.Vision & Mission statements   Vision: Sustain ITC¶s position as one of India¶s most valuable corporations through world class performance.

Gifting & ‡ Safety Matches ‡ Agarbattis Stationery Paperboards & Packaging ‡ Paperboards & Specialty Papers ‡ Packaging .Business Mix of ITC Ltd. FMCG ‡ Cigarettes ‡ Foods ‡ Lifestyle Retailing ‡ Greeting.

Business Mix (Cont·d) Agri . . etc.Business ‡ Agri-Exports ‡ e-Choupal ‡ Leaf Tobacco Hotels Group Companies ‡ ITC Infotech.

54 9230.27 563.1 4.4 FMCG-Others Hotels Agribusiness Paper & pkg.29 FMCG-Cigarettes 8.07 1565. Net revenue 85.2 124.31 304.25 1780.Business wise Sales data Business/ Year Growth Value (Rs in Crore) % 2005 2004 10002.2 24.04 .39 577.77 1253.16 257.99 13349.9 12.53 1708.58 11815.

decent share.CAGR during FY 2005-2008 Category CAGR Growth parameters Pricing power Inward traffic. Fast track.2 % 34. Cigarettes 10.2 % .3 % 60.9 % Hotels Paper Agri business FMCGOthers 22.7% 17. choupal sagar. value added products E-choupal. occupancy Capacity utilization.

Packaging and Agri-Exports. Outstanding market leader  Cigarettes. Paperboards. . Branded Apparel and Greeting Cards. Hotels. Gaining market share  Nascent businesses of Packaged Foods & Confectionery.Market share of ITC Ltd.

4% 87.4% -7.3% 4.Segment Cigarettes Paper & Packg.0% 7. Dominance 70% share Packaging board ± No. 1 in Asia Contribution % Revenue PBIT 77. 'Aashirvaad' atta is No.5% Agri 1of the largest xporters business from India Hotels FMCG (Others) ITC Group ranks No.7% 3.3% 7.2 20% share of greeting cards market.0% 4.1 in branded segment .7% 10.7% 5.

.A c t 2 Market attractiveness & Competitive strength is also important.

High market share/Growth is not the only success factor.Limitations     Assumes market growth rate. A ³Dog´ may be helping other products. A firm may grow the market. . Linkage between market share and profitability is questionable.

Stars ‡Hotels ‡Paperboards/ Packaging. . Cows ‡FMCG-Cigarettes ? ‡FMCG.The BCG Matrix for ITC Ltd.Others Dogs ‡Maybe ITC Infotech. ‡Agri business.

Learning points and conclusions   ? .Act III   .To be handled with care.Action. E-Choupal is a transformational strategy. Strong brand building capability will be tested. . Strategic forays into emerging high growth markets.

(Ex: Paperboards). EHS philosophy: Contribution to the triple bottom line.Learning points (Cont¶d)    Corporate strategy of creating multiple drivers of growth anchored on its core competencies and distribution reach. Embracing difficult and challenging corporate strategy. . Environment and social capital.Economic.

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