abhishreshthaa
Abhijeet S
STRENGTHS
WEAKNESS
1]DIVERSIFICATION INTO VARIOUS LINES IN WHICH IT DOES NOT HAVE MUCH KNOWLEDGE WOULD BE VERY RISKY PROPOSITION.
2] HIGH COMPETITION FROM ESTABLISHED BRANDS WHICH HAS RESULTED IN REDUCTION IN PROFIT MARGINS.
3] STEEP INCREASE IN CIGARETTE TAXES HAS ADVERSILY AFFECTED THE REVENUE EARNED.
4].DUE TO HIGH PRICE OF CIGARETTE, CONSUMERS ARE SWITCHING TO OTHER CHEAPER FORMS OF TOBACCO.
5] ITS HOTEL INDUSTRY HAS STILL NOT CREATED A BIG SHARE IN THE MARKET SIZE.
OPPORTUNITIES
1]BIG UNTAPPED MARKET AVAILABLE. FOR CIGARETTES , HOTELS , IT, RETAIL GARMENT,PACKAGING & AGRICULTURAL PRODUCTS..
2] HIGH GROWTH POTENTIAL COULD BE ACHIEVED.
3]GOOD SOURCE OF REVENUE & FOREIGN EXCHANGE AVAILABLE BY WAY OF EXPORTS OF AGRICULTURAL PRODUCTS , HOTELS & CIGARETTES.
4]ITS COMPETITORS DON’T HAVE THE FIANACIAL BANKING LIKE IT SO IT CAN TAKE ADVANTAGE OF THIS.
5] PROPER PUBLICITY OF THE HOTELS WOULD INCREASE ITS BRAND IMAGE & REVENUE.
THREATS
1] NEGATIVE PUBLICITY FOR SMOKING COULD EFFECT ITS CIGARETE SEGMENT.
2] GOVERNMENT IS UNDER HUGE PRESSURE FROM PUBLIC ORGANISATIONS FOR BANNING TOBACCO PRODUCTS WHICH COULD EFFECT IT ADVERSILY.
3] HIGH COMPETITION FROM ESTABLISHED BRANDS
4] COMPETITION FROM UNBRANDED PRODUCTS.
5] DUE TO TERRORIST ATTACKS THE TOURISM INDUSTRY HAS TAKEN A BACK SEAT WHICH WOULD AFFECT THE HOTEL SEGMENT.
6]POOR MONSOON LEADS TO POOR AGRICULTURALGROWTH WHICH WOULD AFFECT THE AGRI-EXPORTS.
- 1] MANAGING DIVERSE BUSINESS. ITC HAS 105 SUBSIDARIES CONNECTED WITH ITS VARIOUS OPERATIONS.
- 2] WEALTH OF LOCAL KNOWLEDGE & INTERNATIONAL EXPERTISE HELPS IT TO BE GLOBALLY COMPETITIVE.
- 3] HIGH QUALITY STANDARD PRODUCTS & SERVICES
- 4] EXCELLENT EXPORT EARNINGS.
- 5] HIGHILY PROFESSIONAL MANAGEMENT.
- 6] EXCELLENT DISTRIBUTION NETWORK.
- 7] EXCELLENT BRAND MAKING CAPABILITY HELPING IT TO DIVERSIFY IT INTO RETAILING ,IT & HOTELS SEGMENTS
- 8] AGRI-EXPORT SEGMENT SHOWING EXCELLENT GROWTH OF 28 % & EARNING RS 4 BILLION FOREIGN EXCHANGE.
- 9] A LASTING IMPRESSION BY CATCHY ADS.
- 10]. ITC LTD IS ONE OF THE MOST LIQUID SCRIPTS IN THE CAPITAL MARKET. WITH DOMESTIC INSTITUTIONS HAVING A CONSIDERABLE STAKE THIS IS LIKELY RO IMPROVE LIQUIDITY IN DEMAT TRADING.
- 11] GOOD RETURNS BY WAY OF DIVIDEND PER SHARE EVERY YEAR. IN 31.3.2002 THE DIVIDEND DECLARED IS 13.50 RS PER SHARE
- 12] THE LIFESTYLE RETAILING SEGMENT HAS WON ACCLAIM & MOVING TOWARDS HIGHER SALES.
- 13] THE EXPRESSION GREETING CARD IS WIDENING ITS BASE ALL OVER INDIA & IT IS AVAILABLE AT MOST RETAIL SHOPS.
- 14]STEADY INCREASE IN THE RETURN ON CAPITAL EMPLOYED.
- 15] SOPHISTICATED RESEARCH & DEVELOPMENT FACILITIES.
WEAKNESS
1]DIVERSIFICATION INTO VARIOUS LINES IN WHICH IT DOES NOT HAVE MUCH KNOWLEDGE WOULD BE VERY RISKY PROPOSITION.
2] HIGH COMPETITION FROM ESTABLISHED BRANDS WHICH HAS RESULTED IN REDUCTION IN PROFIT MARGINS.
3] STEEP INCREASE IN CIGARETTE TAXES HAS ADVERSILY AFFECTED THE REVENUE EARNED.
4].DUE TO HIGH PRICE OF CIGARETTE, CONSUMERS ARE SWITCHING TO OTHER CHEAPER FORMS OF TOBACCO.
5] ITS HOTEL INDUSTRY HAS STILL NOT CREATED A BIG SHARE IN THE MARKET SIZE.
OPPORTUNITIES
1]BIG UNTAPPED MARKET AVAILABLE. FOR CIGARETTES , HOTELS , IT, RETAIL GARMENT,PACKAGING & AGRICULTURAL PRODUCTS..
2] HIGH GROWTH POTENTIAL COULD BE ACHIEVED.
3]GOOD SOURCE OF REVENUE & FOREIGN EXCHANGE AVAILABLE BY WAY OF EXPORTS OF AGRICULTURAL PRODUCTS , HOTELS & CIGARETTES.
4]ITS COMPETITORS DON’T HAVE THE FIANACIAL BANKING LIKE IT SO IT CAN TAKE ADVANTAGE OF THIS.
5] PROPER PUBLICITY OF THE HOTELS WOULD INCREASE ITS BRAND IMAGE & REVENUE.
THREATS
1] NEGATIVE PUBLICITY FOR SMOKING COULD EFFECT ITS CIGARETE SEGMENT.
2] GOVERNMENT IS UNDER HUGE PRESSURE FROM PUBLIC ORGANISATIONS FOR BANNING TOBACCO PRODUCTS WHICH COULD EFFECT IT ADVERSILY.
3] HIGH COMPETITION FROM ESTABLISHED BRANDS
4] COMPETITION FROM UNBRANDED PRODUCTS.
5] DUE TO TERRORIST ATTACKS THE TOURISM INDUSTRY HAS TAKEN A BACK SEAT WHICH WOULD AFFECT THE HOTEL SEGMENT.
6]POOR MONSOON LEADS TO POOR AGRICULTURALGROWTH WHICH WOULD AFFECT THE AGRI-EXPORTS.