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Competitive Strategy and Its Impact on ITC Portfolio 1Durga Prasad Bhuyan, 2Dr

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Competitive Strategy and Its Impact on ITC Portfolio 1Durga Prasad Bhuyan, 2Dr ISSN : 2249-5762 (Online) | ISSN : 2249-5770 (Print) IJRMET VOL . 5, ISSU E 1, SPL - 1 NO vem B er 2014 - AP ri L 2015 Competitive Strategy and Its Impact on ITC Portfolio 1Durga Prasad Bhuyan, 2Dr. Sushanta Tripathy 1Ravenshaw Business School, Ravenshaw University, Cuttack, Odisha, India 2School of Mechanical Engineering, KIIT University, Bhubaneswar, Odisha, India Abstract Technology business. The objective of the study is to find out the competition strategy ITC get them involved in the food business in the year of 2001, adopted by ITC.ltd (biscuit divison) and the impact of it on ITC with the introduction of Kitchen of India, then in the year 2002 portfolio and to find out the problem related to the sales and service ITC entered the confectionery and staples segments with the activity of ITC and the ways to overcome it. Through this survey launch of the brands mint-o and Candyman confectionery and in market the market position of ITC is determined and what Aashirvaad atta (wheat flour). The company in 2003 entered to effect does it have on the sales activity. The steps to overcome the biscuit segment by the name of Sunfeast. In 2007 they entered into problem are determined through this survey and how to develop the snacks category Bingoo. In 2010 ITC launched SunfeastYipee! the sales and distribution are also suggested through this paper. and thereby they were into noodles segment. In 2002 the company was into incense sticks and safety matches Keywords business. Competitive Strategy, Sales and Service, ITC Portfolio In the year 2002 ITC came over with educational and Stationary business. ITC is presently India’s largest notebook brand known I. Introduction: History and Evolution by the name of classmate. In 2005 the company added another segment to its business A. ITC.ltd Personal care products Vivel, Superia , Fiama DI wills are the ITC .ltd was incorporated at Kolkata, India on Aug 24 1910 product under this portfolio recently the company added ‘engage ‘ under the name of “Imperial Tobacco Company limited”. The one of the India’s first range of couple deodorants. The company name change from Imperial Tobacco Company limited to Indian is into FMCG since last 10 years, with the introduction of foods, Tobacco Company limited in the year 1970. Which then change personal care, Branded apparels, Incense Sticks and safety matches to I.T.C. limited in 1974. Finally, the dots present in between in its portfolio the company then become a leading players in ITC were removed in 18th Sep 2001 since then it is known as different segment and a tough competitor of HUL,P&G, Britannia, ITC limited. Parle, Peter England, Levies and Godfrey Phillip India ltd., VST The company’s principal product was cigarette. As the time pass and Nestle’ like companies. the company started growing and become a reputed brand in the With number of products under its umbrella ITC is now standing cigarette division. Slowly with the pass of time the company as a rank one Indian FMCG company. diversifies its business to other sector like FMCG, Hotels, Paper ITC added biscuit to its portfolio in the year of 2003 it was launched boards and packaging, Agri business, and IT. in the name of Sunfeast. Today more than 15 brands of Sunfeast Working Sector of ITC.ltd: biscuits are available in the market all over India. 1. FMCG • Foods B. Competitive Strategy • Personal Care Long-term action plan that is devised to help a company gain • Cigarette a competitive advantage over its rival. This type of strategy is • Branded Apparels often used in advertising campaigns by somehow discrediting the • Incense sticks and Safety matches competitors product or service. Competitive strategies are essential 2. Hotels to companies competing in markets that are heavily saturated with 3. Paper board and Specialty papers alternatives for consumer. 4. Packaging 5. Agri – business 1. Competition Strategy as Stated by Various Authors 6. Information Technology Author Focus Area Findings Initially there sole product was cigarette, in the year 1925 the Relationship Positive relationship company started its packaging unit which now considered to be between interfirm of supplier the most sophisticated packaging house. In 1975 a welcome move J.H Dyer(1996) assets specify and and automaker was taken by ITC as they were into hotel business in the name its performance in auto specialization and was there first move towards hospitality sector. industry. performance In the year 1979 the company started its paperboards and specialty Attention to consumer Tone.A.Ostagurd Personal networks understanding of papers unit. and Sue and firms the business market In the year of 1990 the company involves itself in the Agri-Business Briley(1994) competitive strategy the basic purpose of the business is the export of agricultural orientation or stress commodities. This Agri- Business division is today one of India's Examining implication largest exporters. In the year 2000 the company stared its lifestyle Understanding the of this firm resource source of sustained model of sustained business i.e. they were into garment business, with the brand name Jay Barney competitive competitive advantage of wills it started and in 2002 John player was introduced in the advertisement for other business lifestyle segment. disciplines. In the same year i.e. on the year 2000 the company get involved in the business friendly solution as a result they were into information www.ijrmet.com INTERNATIONAL JOURNAL OF RESEARCH IN MECHANICAL ENGINEERING & TECHNOLOGY 51 IJRMET VOL . 5, ISSU E 1, SPL - 1 NO vem B er 2014 - AP ri L 2015 ISSN : 2249-5762 (Online) | ISSN : 2249-5770 (Print) It indicate that there 1. Trusteeship is a significant As professional managers, we are conscious that ITC has been relationship between Examine the given to us in "trust" by all our stakeholders. We will actualize entry order and Julio ‘o’ de Order of market stakeholder value and interest on a long term sustainable basis. competitive strategy. castroandjames J entry competitive Furthermore, these Chris man(1995) and financial relationships have a 2. Customer Focus performance significant influence We are always customer focused and will deliver what the customer on a firm's financial needs in terms of value, quality and satisfaction. performance. The finding relate the 3. Respect for People Kathryn Strategy for joint requirement of co- We are result oriented, setting high performance standards for RudieHarrigan ventures operative strategy for 2006 ourselves as individuals and teams. joint ventures. We will simultaneously respect and value people and uphold The marketing humanness and human dignity. The role of capability influence We acknowledge that every individual brings different perspectives Jay Weeracoandena marketing capability both the innovation and capabilities to the team and that a strong team is founded on 2003 in innovation based intensity and sustained a variety of perspectives. competitive strategy competitive advantage We want individuals to dream, value differences, create and of the firm. experiment in pursuit of opportunities and achieve leadership Manufacturing The effect of through teamwork. strategy in context: Peter T Ward and competitive strategy environment Rebeccsdarey in manufacturing ,competitive strategy 4. Excellence (2000) and its relation with and manufacturing We do what is right, do it well and win. We will strive for excellence environment/ strategy in whatever we do. 2. Objectives 5. Innovation The basic objective of the project is to We will constantly pursue newer and better processes, products, • Find out the competition strategy of ITC and its impact on services and management practices. the port-folio of ITC. • To find out the problems related with the sales and service 6. Nation Orientation activity of ITC and the ways to overcome it. We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will make no compromise 3. Scope in complying with applicable laws and regulations at all levels. Scope of the project is linked with the competition strategy, service level or the service being provided, opportunities, and for the D. Corporate Strategies development in the areas lacking behind. ITC is a board-managed professional company, committed to creating enduring value for the nation and the shareholder. It has 4. Limitation a rich organisational culture rooted in its core values of respect The project was limited only up to the biscuit division of ITC. for people and belief in empowerment. Its philosophy of all-round The entire research was done on the positioning, current state in value creation is backed by strong corporate governance policies the market and the competition policy. and systems. ITC’s corporate strategies are: C. Manifesto for Growth • Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organisational 1. Mission capability with opportunities in domestic and export To enhance wealth generating capability of the enterprise in a markets. globalizing environment, delivering superior and sustainable stake • Continue to focus on the chosen portfolio of FMCG, holder value. Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. 2. Vision • Benchmark the health of each business comprehensively Sustain ITC position as one of the India’s most valuable corporation across the criteria of Market Standing, Profitability and through world class performance, creating growing values for
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