Strategic Analysis for Philip Morris

Mehmet Burkay 251311001 STRATEGIC psychoanalysis FOR PHILIP MORRIS *PEST ANALYSIS Political and Legal Forces The laws regulated by the governments against the cigarette companies and cigarette advertisements, since early 90s. increase tax rates on cigarettes especially in U. S. and Western Europe The barriers against out-of-door producers in china, korea, taiwan, japan Economic Forces change magnitude buying power of the consumers in maturation countries Incremental costs of alternative merchandise strategies Compensation expenditures Shrinking old markets in developed countries growing unexampled markets in developing countries friendly Forces Developing social awereness against harm of cigarette Campaigns against cigarette technological Forces Researches on cure for cancer diminish costs imputable to the developments of new Technologies Comprising new advertisement methods through internet * thrum ANALYIS Strengths Companys hale monetary budget Well known brands in cigarette market Prestigious check of Marlboro Successful partners in foreign markets toughened distribution channels Essential integrated culture Weaknesses Inadequate comunication with public Opportunities Growing new markets in developing countries pass 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 outlay and advertisements Increasing prices in agricultural crossings Deaths due to cigarette Probable compensations * Industry and antagonist Analysis Potential Entrants miserable get-go investment costs are sort of high and markets are quite henpecked by existing firms Bargaining government agency of Suppliers medium In many countries demesne is the supplier of tobacco and prices are be by states Bargaining cause of Buyers junior-grade Cigarett e consumers have no jeopardy to bargain on prices 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. in that location is also no serious product that can substitute cigarette contestation in Industry high in that location are many firms activating in industry