SWOT analysis of FMCG Industry

Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector
4. Deep roots in local culture & great understanding of consumer needs
Weaknesses:
1. Lower scope of investing in technology and achieving economies of scale,
especially in small sectors
2. Low exports levels
3. Counterfeit Products. These products narrow the scope of FMCG products in
rural and semi-urban market.
Opportunities:
1. Untapped rural market
2. Rising income levels, i.e. increase in purchasing power of consumers
3. Large domestic market- a population of over one billion.
4. Export potential
5. High consumer goods spending
Threats:
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slowdown in rural demand
3. Tax and regulatory structure.
 SWOT analysis of ITC

Strengths:
1. ITC has a strong and experienced management
2. Strong brand presence, excellent products advertising
3. Diversified product and services portfolio which includes FMCG, Hotel
chains, paper & packaging and agri-business
4. Over 6500 E-Choupal CSR activities and sustainability initiatives enhance
ITCs brand image reaching over 4 million farmers
5. ITC limited employees over 25,000 people
6. Excellent research and development facilities

Weaknesses:
1.ITC is still dependant on its tobacco revenues and people have cheaper
substitutes and other brands
2.Hotel industry has not been able to create a huge market share

Opportunities:
1. Tap rural markets and increase penetration in urban areas
2.Mergers and acquisitions to strengthen the brand
3.Increasing purchasing power of people thereby increasing demand
4. More publicity of hotel chains to increase market share

Threats:
1. Strict govt. regulations and policies regarding cigarettes
2.Intense and increasing competition amongst other FMCG companies and hotel
chains
3.FDI in retail thereby allowing international brands