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ITC Limited Strategic Management Analysis

The document analyzes ITC Limited's competitive environment. It finds that the threat of new entrants is low due to difficulties in product differentiation and high capital requirements. Supplier bargaining power is high because of limited suppliers and skilled personnel. Competitive rivalry is high because of less product differentiation, moderate switching costs, and moderate customer loyalty. The threat of substitutes is low due to strict laws. The document also summarizes ITC's value chain, resources, capabilities, and growth over time.

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Anoj Kumar
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17 views4 pages

ITC Limited Strategic Management Analysis

The document analyzes ITC Limited's competitive environment. It finds that the threat of new entrants is low due to difficulties in product differentiation and high capital requirements. Supplier bargaining power is high because of limited suppliers and skilled personnel. Competitive rivalry is high because of less product differentiation, moderate switching costs, and moderate customer loyalty. The threat of substitutes is low due to strict laws. The document also summarizes ITC's value chain, resources, capabilities, and growth over time.

Uploaded by

Anoj Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ITC Limited

Strategic Management Assignment

1/12/2011

Submitted by
Anoj Kumar
Section C
2010PGP053
ITC Limited
Competitive Analysis:

Threat of New Entrant: Low


 Product differentiation is tough
 High capital requirement
 High Tax, No TV/Radio Ads

Bargaining power of Supplier: High Competitive Rivalry: High Bargaining power of


 Limited number of suppliers  Product differentiation is less Buyer: moderate
 Limited number of skilled  Moderate fixed costs  Buyer is diversified
personnel  Less switching costs  Ability to substitute
 Customer loyalty is moderate is low

Threat of Substitute: Low


 Due to strict laws

Value Chain of ITC:

Firm Infrastructure

Recruiting & Training Recruiting & Training Recruiting & Training

Product Development Process flow design Operation system Market Research Conference participation
And development
Commercialization Sales aids & technical Patents
Literature

Raw material Purchase through Materials


Procurement e-Choupal Transportation

Inbound material Fabrication Order Processing Advertising and after sales service
Handling promotion

Inbound inspection Quality assurance Distribution network Sales force


and channels
Value Chain of e-Choupal:

Resource based Analysis:

Tangible Resources
Financial It has market capitalization of nearly US $ 20 Billion and turnover of
about $ 6 Billion
Very respected and reputed player makes it easier to raise equity and
also borrow cash

Physical Offices in 5 countries


ITC InfoTech offices in USA, Europe, Australia etc.

Technological Hold a large number of patents of FMCG and tobacco products


Research collaborations with several universities

Organizational Rated among world best big companies, Asia’s Fab’ 50, and
worlds most reputable companies by Forbes Magazine

Intangible Resources

Human Highly skilled and most seeking long term careers


in Product development and commercialization,
constant learning model
Innovation and Has diversified presence in Cigarettes, Hotels, Paperboards &
Creativity Specialty papers, Packaging, Agribusiness, IT and FMCG etc.
Reputation Globally established brand name

Organizational Capabilities
Outstanding market leader in Cigarette, Hotels, Paperboards, Packaging and Agri-business
Gaining market share of packaged foods and confectionery, Branded Apparel & Cards
Growth Potential:

Year Share Capital (Rs. In Sales (Rs. In Share Prices (Rs.)


crores) crores)
2010 381.82 18153.19 169.00
2012 382.27 18174.58 169.20
2014 384.15 18263.97 170.03
2016 385.83 18343.84 170.77
2018 389.44 18515.47 172.37
2020 396.70 18860.64 175.59

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