7) The SWOT analysis of ITC Limited is as follows:

 Strengths:

 Brand image– ITC is the most valuable brand of India with net income of Rs.
10,471 crore in 2017.

 Competence– ITC has a track record of 100 years of presence, quality,

consistency and continuous progress, expansion and diversification.

 Market position– ITC is dominating Indian tobacco market by selling 81% of

the cigarettes and cigar such as Gold Flake, Gold Flake Super Star, Wills
Navy Cut, Premium Lights, Classic (Regular, Verve, Menthol, Menthol Rush,
Citric Twist, Ice Burst, Mild & Ultra Mild) etc.

 Core competency– ITC is India’s largest seller of branded foods with sales of
over Rs. 4600 crore in 2012-13. Its most famous food brands are Aashirwaad,
B Natural, Sunfeast, Yippee! , Bingo! And Candyman.

 Leader of other sectors– ITC has India’s largest hotel chain with over 90
hotels throughout India. ITC is exclusive franchise holder of two brands
owned by Sheraton International Inc.

 Weaknesses:

 Declining industry trend– Legal cigarette business has witnessed a 25%

decline in volumes from 2012-13 which has affected the profits of ITC Limited.

 Tax reforms in India– Under the newly enforced Goods and Services Tax Act,
2017 tax is charged at a higher rate than before GST which is exacerbating
the business especially cigarette business of ITC.

 Multiple brands– ITC Limited has way too many brands and its business is
expanded to various different industries which is causing brand dilution.

 Debt– ITC has total debt of 3.38 billion this is much higher than that of the
sector and significantly higher than that of the Total Debt Industry.

 Dependence on tobacco products– ITC Limited is largely depending upon

tobacco products which may become detrimental to its progress in future.

 Opportunities:
  Growth rate of the economy– Growth rate of Indian economy is expected to
be 7% that means new opportunities will arise in future in different sectors and
industries of the economy.

 Change in customer habits– Living standard of Indians is rising causing the

increase in their purchasing power because of which now customers are
choosing to buy branded products over unbranded cheap products for better
quality, have started to dine out in restaurants and hotels which is opening
doors of new opportunities for ITC.

 Unchanged interest rate– In the meeting of the Monetary Policy Committee of

the Reserve Bank of India held in October, 2017 RBI left the repo rate
unchanged (6%) consequently, banks will not increase interest rate on the
amount of loan that they will advance to borrowers hence raising debt funds
will not be expensive for further expansion or diversification of the business.

 Growing demand in FMCG sector– Increasing urbanization and a growing

middle class are resulting in an ever-growing demand for processed food in
the FMCG sector consequently a total investment of Rs. 68,000 crore has
been proposed from various global and domestic companies in the World
Food India, 2017 out of which ITC is planning to invest Rs. 10,000 crore in
food processing over the next five to seven years which will ultimately reduce
the over dependence of ITC on tobacco business.

 Threat:

 Competition– ITC Limited is facing and will face in future, intense competition
from domestic and foreign companies in various industries.

 Compliance– GST has imposed stricter and heavier compliance regulation

and filings which will ultimately increase the cost of compliance of ITC.

 Inflation effect– In July, 2017 fuel prices increased to 5.56% consequently

freight and transportation charges will increase.

 Political disturbance– Disruption caused by demonetization has affected

Indian economy adversely in many ways, causing its growth forecast to be
reduced from 7.4% to 7% by the World Bank. It may affect all the sectors and
companies operating within the economy.

8) Competitor of Classmate:

 Navneet

 Satyam

 Cello