Value Chain Analysis of ITC

ITC is an Indian conglomerate multinational corporation. The company started its business journey in 1910. Today, we’ll discuss the value chain analysis of ITC supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Business Areas of ITC

• Packaging
• Paper Products
• Information Technology
• Agribusiness
• Hotels & Restaurants
• FMCG

Brands of ITC

• Sunfeast
• Classmate
• Fiama Di Wills
• Savlon
• Aashirvaad
• Classic
• Wills Navy Cut
• Gold Flake

Products and Services Exporting Countries

• Austria
• Hong Kong
• Singapore
• USA
• Sweden
• Vietnam
• Uzbekistan
• USA
• Ukraine
• Turkey
• Russia
• Mexico

The Value chain analysis of ITC supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of ITC value chain analysis company example as follows;

Value Chain Analysis of ITC

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of ITC supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of ITC

The primary activities are directly involved in the production of products and goods and adding value to the conglomerate company. Some of the five main primary activities in the value chain analysis of ITC supply chain analysis are as follows;

Inbound Logistics of ITC

I-Large Suppliers Network

ITC has established a very large supplier network in various business segments of FMCG, hotels and restaurants, technology, agribusiness, and paper packaging. The conglomerate company collaborates with thousands of suppliers and vendors from across the country and worldwide. The large supplier network would help the conglomerate to ensure the smooth supply of raw materials and supplies without any disruption and delays.

II-Sustainable Supply Chain

ITC is highly careful and cautious about ethical sourcing and procurement of raw materials, recycling, and reusing waste, and optimum utilization of resources. It shows the company’s strong commitment to society and the environment, reducing waste, creating opportunities for farmers, and taking care of the society and the environment.

Outbound Logistics of ITC

ITC has established a very large logistics and distribution network across India. According to an estimate, approximately 2 million distributors are working directly under the company’s control. Along with an in-house logistics and distribution network, the conglomerate also partners up with various transportation and 3rd party logistics service providers for the transportation and distribution of products and goods. They move raw supplies and materials from the authorized suppliers to the production and manufacturing factories; warehouses and distribution centers, retail stores, and the end consumers.

Operations of ITC

I-Production & Manufacturing Factories

ITC has approximately 100 production and manufacturing factories across India. Along with producing retail products, they also provide the service of production outsourcing to other companies. They receive raw materials and supplies from the authorized and verified suppliers of the company; perform various operations and processes to produce different types of products, and deliver them to retail chain stores.

II-Warehouses & Distribution Centers

ITC has a network of approximately 60 warehouses and distribution centers across the country. They receive finished goods from the production and manufacturing factories of the company; temporarily store, package, label, and manage the product before shipping them to retail stores and the end consumers.

Marketing & Sales of ITC

I-Marketing & Advertisement

ITC runs various types of marketing and advertisement campaigns for the promotion of its products and services. The company employs various media channels, digital and social media marketing campaigns, celebrity endorsements, and hiring celebrities as brand ambassadors to approach various segments of the customer market.

II-Retail Stores

ITC has established a very large distribution network and it helps the company to make its products available in approximately 6 million stores in 90 countries across the world. It amplifies the customer market reach and accessibility of the company to the end consumers.

Services of ITC

ITC offers a wide range of products and services to the large customer market. The large and diversified service portfolio of the company promotes brand loyalty and improves the overall customer satisfaction level of the company.

Supporting Activities of ITC

Supporting activities are indirectly involved in the production of products and goods and adding value to the conglomerate company. Some of the main supporting activities in the value chain analysis of ITC supply chain analysis are as follows;

Infrastructure of ITC

ITC has established a very large infrastructure of production and manufacturing factories, retail chain stores network, suppliers and distribution network, and research facilities. The large and diversified infrastructure helps the multinational conglomerate to smoothly perform various operations and deliver the finished products to the end consumers.

HRM of ITC

ITC has employed approximately 36000 employees to manage its global conglomerate operations. The human resource management department of the company plays a key role in building a large database of employees, carefully recruiting employees with multiple skill sets, and offering equal employment opportunities to all regardless of any differences.

Technological Development of ITC

ITC invests a significant amount of capital resources in research and technological development. The company has multiple research and development facilities across India. They help the conglomerate develop new products and services, find efficient methods of production, source new materials, and develop advanced technology to gain a competitive edge in the market.

Procurement of ITC

ITC is highly careful and cautious about ethical sourcing and recruitment of raw materials and finished goods from suppliers and vendors. The Indian conglomerate has set strict protocols for suppliers to comply with human rights standards and sustainability of the environment.

Conclusion: ITC Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of ITC; we have realized that ITC is the world’s leading Indian multinational conglomerate company. If you are learning about the ITC value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.