Itc Swot Analysis

Strengths Portfolio of Business: ITC, with it’s six businesses takes immense pride with their revenue generated which allows them to innovate and explore other businesses.

Strong Brands in various businesses: Most of ITC’s business products are the leaders in of their segments in which they operate. They own a large amount of top selling popular brands such as Classic and Gold Flake (cigarettes), Sunfeast biscuits, Aashirvaad flour, Yippee! noodles, Engage perfume, Bingo chips, etc. ITC’s hotel and property businesses are also admirably.

Effective Social Business Initiatives: ITC follow a triple-bottom-line strategy which concentrates on the development of India’s economic, social and environmental capital. They have led several operations

They have a grasp over the strong distribution system of cigarette brands helping them design a channel for FMCG products. Moreover, ITC’s knowledge of food and bakery items from their hotel businesses influence and have great impact in the Packaged Food category.

Weaknesses

High Proportion of revenues from Tobacco products: ITC constantly makes efforts to reroute the FMCG business from the domination of tobacco products to their other products like foods, personal care, education, stationery, etc. Even though they have been somewhat successful in doing so, the tobacco products are more than 60% of the total revenue from FMCG businesses.

Association with Tobacco Products affects the image: ITC attempts to improve its corporate image but ITC has many tobacco products in its business range affects their corporate image negatively.

Lack of knowledge: ITC’s expansion plans into diverse product lines which they do not have knowledge would be very risky proposition, for example, hospital market,

This could be helpful in increasing revenue for all its businesses.

Growing Personal Hygiene as well as Food processing Industry in India: ITC should employ its distribution channels in Personal Hygiene and Food Processing Industry to maximise the growth and increase revenue.

Tap opportunities created in the Rural Market: The increasing size of the rural market in India creates a huge opportunity to improve the bottom-line of the ITC.

Franchise: ITC should provide finer franchising opportunities for the purpose of expansion of their business since the ease of doing business in India has been increasing.

Threats

Intensifying Competition in FMCG businesses: ITC faces immense competition in its FMCG business from established companies such HUL, P&G, Patanjali and Dabur. This puts a limit to the market share of ITC.

Strict Regulations and Increasing Taxation in Cigarette Business: India’s government continues to keep on increasing the taxes on and changing the regulatory rules of the Tobacco and Cigarette Industry. Since the cigarette business of ITC contributes the maximum profit, the increasing tax is major