BCG Matrix for ITC Ltd.

Dileep pandey

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

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

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

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

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

29 13349.9 12.04 .31 257.25 1780.39 304.16 FMCG-Cigarettes 8.07 1565.53 1708.4 FMCG-Others 85.Business wise Sales data Business/ Year Growth Value (Rs in Crore) % 2005 2004 10002. Net revenue 124.27 563.2 24.2 Hotels Agribusiness Paper & pkg.54 9230.99 577.58 11815.77 1253.1 4.

3 % 60.2 % 34.7% Paper Agri business FMCGOthers 17.2 % Capacity utilization. decent share.CAGR during FY 2005-2008 Category CAGR Growth parameters Pricing power Inward traffic. Fast track. value added products E-choupal. occupancy Cigarettes 10. choupal sagar.9 % Hotels 22. .

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

3% 4.Segment Cigarettes Paper & Packg.1 in branded segment 4.2 20% share of greeting cards market. 'Aashirvaad' atta is No.7% 3.7% Agri 1of the largest xporters business from India Hotels FMCG (Others) ITC Group ranks No.0% 87.0% 10.5% .3% 7.4% 5. Dominance 70% share Packaging board – No.4% -7. 1 in Asia Contribution % Revenue PBIT 77.7% 7.

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

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

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

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

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

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