Strategic Analysis for Philip Morris

Mehmet Burkay 251311001 STRATEGIC ANALYSIS FOR PHILIP MORRIS *PEST ANALYSIS Political and Legal Forces The laws regulated by the governments against the tail companies and cigarette advertisements, since early 90s. Increasing tax rates on cigarettes especially in U. S. and Western Europe The barriers against outside producers in china, korea, taiwan, japan Economic Forces Increasing buying power of the consumers in developing countries Incremental costs of alternative marketplaceing strategies Compensation expenditures Shrinking old markets in developed countries Growing juvenile markets in developing countries amicable Forces Developing social awereness against harm of cigarette Campaigns against cigarette Technological Forces Researches on cure for cancer Decreasing costs due to the developments of juvenile Technologies Comprising new advertisement methods through internet * SWOT ANALYIS Strengths Companys strong financial budget Well known brands in cigaret te market Prestigious image of Marlboro Successful partners in foreign markets Strong distribution channels Essential corporate culture Weaknesses Inadequate comunication with public Opportunities Growing new markets in developing countries Chance to use brands in different sectors Merging or forming strategic alliances with local corporations in foreign markets Threats Aggressive marketing campaigns of competitors Social campaigns against cigarette Legal barriers against cigarette consumption and advertisements Increasing prices in agricultural products Deaths due to cigarette Probable compensations * Industry and Competitor Analysis Potential Entrants depression gear First investment costs are quite laid-back and markets are quite dominated by existing firms Bargaining Power of Suppliers medium In many countries state is the supplier of tobacco and prices are defined by states Bargaining Power of Buyers low Cigarette consumers have no chance to dicker on price s Other Stakeholders Power high Governments have very strong power to apply sanction on cigarette firms and cigarette market. Threats of Substitute Products low Cigarette is easy to reach and use. There is also no serious product that can substitute cigarette Competition in Industry high There are many firms activating in industry