Itg Matrix Analysis

ITC Limited:

The diversified business of ITC limited, a conglomerate includes: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business and Information Technology. ITC was established in 1910 as Imperial Tobacco Company and later renamed to Indian Tobacco Company Limited in 1970, I.T.C Limited in 1970 and ITC Ltd in September 2001. The organization is a part of the Forbes 2000 list.
Social Responsibility initiatives:

E-Choupal:
E-Choupal is an initiative taken by ITC to leverage information through internet in the pursuit of helping farmers. Under this initiative, computers are placed in rural farms, acting both as a socializing place and also as an e-commerce hub. Using these systems, farmers can procure the raw

It is an efficient indicator of the position of each business and provides us with an idea of what has to be done with each business. The BCG matrix for ITC is as follows:

STAR:
These are businesses with relatively high market share operating in markets which have relatively high growth rate. These are businesses in which the company has to invest so that these businesses grow into the future cash cows. The organization has to invest in these businesses to develop them rapidly.
Paper: Classmate, market leader with a 20 per cent share is a star category of business for ITC.
CASH COW:
These are businesses with relatively high market share operating in markets which have relatively low growth rate. These are businesses which generate huge money with very little effort and hence the name. These businesses should be milked and the profits should be invested to develop the Stars or Question mark businesses of the organization. The organization has to invest the profits from these businesses in the Star category

These are businesses which have the potential to turn into future stars or can fizzle out into the next dog. The company should keep a close look on these businesses and give them time to see which way the business moves in the BCG matrix. The organization has to adopt a wait and watch policy on these businesses.
Food and Personal Care with 28% market share and 0.84% profit contribution falls under the question mark category for ITC.
DOG:
These are businesses which have relatively low market share in markets with relatively low growth rate. Since these businesses neither contribute to the bottom line of the company, as their market share is low nor do they contribute to the future plans of the company, as the growth rate of the market is low, these businesses need to be divested. The proceeds from the sales can be used to invest in question marks or stars. ITC should divest these companies and invest the valuable proceeds in either Agri business or Packaging as these are the businesses of the next decade.
Branded Apparels with a 10% market share and 4% contribution to company falls under this