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    BCG Matrix For ITC LTD.: Ranjan Varma

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    Siddhartha Suryagandha
    ITC Ltd has a diverse portfolio including cigarettes, hotels, paperboards, packaging, agriculture, and fast moving consumer goods. The BCG matrix shows cigarettes as the cash cow due to its large market share and profitability. Hotels, paperboards/packaging, and agriculture are stars with high growth potential. FMCG others are stars that ITC is gaining market share in. ITC Infotech may be considered a dog with low market share. ITC pursues a strategy of creating multiple growth drivers anchored in its core competencies and distribution.

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    BCG Matrix For ITC LTD.: Ranjan Varma

    Uploaded by

    Siddhartha Suryagandha
    13 views16 pages
    ITC Ltd has a diverse portfolio including cigarettes, hotels, paperboards, packaging, agriculture, and fast moving consumer goods. The BCG matrix shows cigarettes as the cash cow due to its large market share and profitability. Hotels, paperboards/packaging, and agriculture are stars with high growth potential. FMCG others are stars that ITC is gaining market share in. ITC Infotech may be considered a dog with low market share. ITC pursues a strategy of creating multiple growth drivers anchored in its core competencies and distribution.

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    ITC Ltd has a diverse portfolio including cigarettes, hotels, paperboards, packaging, agriculture, and fast moving consumer goods. The BCG matrix shows cigarettes as the cash cow due to its large market share and profitability. Hotels, paperboards/packaging, and agriculture are stars with high growth potential. FMCG others are stars that ITC is gaining market share in. ITC Infotech may be considered a dog with low market share. ITC pursues a strategy of creating multiple growth drivers anchored in its core competencies and distribution.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    13 views16 pages

    BCG Matrix For ITC LTD.: Ranjan Varma

    Uploaded by

    Siddhartha Suryagandha
    ITC Ltd has a diverse portfolio including cigarettes, hotels, paperboards, packaging, agriculture, and fast moving consumer goods. The BCG matrix shows cigarettes as the cash cow due to its large market share and profitability. Hotels, paperboards/packaging, and agriculture are stars with high growth potential. FMCG others are stars that ITC is gaining market share in. ITC Infotech may be considered a dog with low market share. ITC pursues a strategy of creating multiple growth drivers anchored in its core competencies and distribution.

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    BCG Matrix for ITC Ltd.

    Ranjan Varma
    Structure

    Act I Lights! ITC- A Background

    Act II Camera! The BCG matrix

    Act III Action! Learning points and


    conclusions
    Act –I [Lights!]
    Governance structure
     Strategic supervision
     Strategic management
     Executive management
    Core values
     Nation Orientation; Trusteeship; Excellence;
     Customer focus; respect for people; Innovation
    Vision & Mission statements
     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.
     Mission: To enhance the wealth
    generating capability of the enterprise in
    a globalizing environment, delivering
    superior and sustainable stakeholder
    value.
    Business Mix of ITC Ltd.
    FMCG
    • Cigarettes
    • Foods
    • Lifestyle Retailing
    • Greeting, Gifting & Stationery
    • Safety Matches
    • Agarbattis

    Paperboards & Packaging


    • Paperboards & Specialty Papers
    • Packaging
    Business Mix (Cont’d)
    Agri - Business
    • Agri-Exports
    • e-Choupal
    • Leaf Tobacco

    Hotels

    Group Companies
    • ITC Infotech; etc.
    Business wise Sales data
    Business/ Year Growth Value (Rs in Crore)
    % 2005 2004

    FMCG-Cigarettes 8.4 10002.54 9230.27


    FMCG-Others 85.2 563.39 304.16
    Hotels 124.1 577.25 257.53

    Agribusiness 4.2 1780.07 1708.77


    Paper & pkg. 24.9 1565.31 1253.29
    Net revenue 12.99 13349.58 11815.04
    CAGR during FY 2005-2008
    Category CAGR Growth parameters
    Cigarettes 10.9 % Pricing power
    Hotels 22.7% Inward traffic, occupancy
    Paper 17.2 % Capacity utilization, value
    added products
    Agri 34.3 % E-choupal, choupal sagar,
    business
    FMCG- 60.2 % Fast track, decent share.
    Others
    Market share of ITC Ltd.
    Outstanding market leader
     Cigarettes, Hotels, Paperboards,
    Packaging and Agri-Exports.
    Gaining market share
     Nascent businesses of Packaged
    Foods & Confectionery, Branded
    Apparel and Greeting Cards.
    Segment Dominance Contribution %
    Revenue PBIT
    Cigarettes 70% share 77.0% 87.7%

    Paper & Packaging board – No. 7.3% 10.7%


    Packg. 1 in Asia
    Agri 1of the largest xporters 7.0% 3.7%
    business from India
    Hotels ITC Group ranks No.2 4.3% 5.4%

    FMCG 20% share of greeting 4.4% -7.5%


    (Others) cards market,
    'Aashirvaad' atta is
    No.1 in branded
    segment
    A
    c
    t
    2

    Market attractiveness & Competitive


    strength is also important.
    Limitations
     Assumes market growth rate. A firm may
    grow the market.
     A “Dog” may be helping other products.
     High market share/Growth is not the only
    success factor.
     Linkage between market share and
    profitability is questionable.
    The BCG Matrix for ITC
    Ltd.
    Stars ?
    •Hotels •FMCG- Others
    •Paperboards/
    Packaging.
    •Agri business.
    Cows Dogs
    •FMCG-Cigarettes •Maybe ITC
    Infotech.
    Act III - Action- Learning points and
    conclusions

     ? - To be handled with care.


     Strategic forays into emerging high growth
    markets.
     E-Choupal is a transformational strategy.
     Strong brand building capability will be
    tested.
    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. (Ex: Paperboards).
     EHS philosophy: Contribution to the triple
    bottom line- Economic, Environment and
    social capital.

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