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VIP

Competitive Strategy, ITC


GE/BCG/Grand Strategy Matrix
Dr Amit Rangnekar
Competitive Strategy
VIP Samsonite

Started 1973, Dilip Piramal 1997, JV- Tainwala 40%; Samsonite 60%
Sales India Rs 1216 Cr, 92% contribution, Global Rs 1306 Cr Rs 950 Cr, 6% contribution, Global $2.5b
Stores India 8000 4000
Image Synonymous with luggage in India Premium international luggage brand, niche urban
Price Range 500-10000 Samsonite 10000+, American Tourister 3000-9999
Presence All segments, all price points, VFM Premium leader, Mass Premium (AT) challenger
Unorganized Aristocrat and Alfa, at all entry points No presence in largest market
Range PC / Printed/ Nylon luggage, strolleys, handbags, Luggage, backpacks, travel accessories, rucksacks,
backpacks, wallets, travel accessories messenger bags
India Leader, India largest market, available in UK, US, part India 4th largest, global leader, US, China, Korea major
Asia, part EU
Celebs Hrithik, Varun, Rohit & Ashwin, Alia American Tourister- Virat Kohli
2
ITC BCG Matrix
15%

High

RTE

Market
5%
Growth%
Cigarettes

Lifestyle

Personal Care
Low
Finance

IT
-5%

10X 1X 0.1X
RMS

Milk Harvest Divest


ITC GE Matrix
Strong Medium Business Strength Weak

High

Cigarettes
Market Attractiveness

Medium

RTE

Lifestyle

Personal
Care Finance

Low
IT

Milk Harvest Divest


Grand Strategy Matrix
Retrenchment Strategies
Rapid Market Growth Growth Strategies

Market Development- Finance, IT Market Development- Stationery


Market Penetration- Ready to Eat Market Penetration- FMCG, Deos
Product Development- Dairy Product Development- Biscuits, Atta
Divestment Forward Integration- Paper
Liquidation Backward Integration- Agro Products, Tobacco
Horizontal Integration- FMCG- Foods, Personal Care, Healthcare
Related Diversification- Shampoos, Soaps Strong
Weak
Competitive Competitive
Position Position
Retrenchment Related Diversification- Paper. Matches, Agarbatti
Related Diversification- Tobacco Unrelated Diversification- Hotels
Unrelated Diversification- Apparel Joint Ventures
Divestment
Liquidation

Slow Market Growth

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