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Philip Morris and English American Cigarette: Comparative Research

Table of Contents

Industry Overview2

E-Cigarettes: A Threat or an Opportunity intended for the Tobacco Industry2 Philip Morris: Company Overview3

Philip Morris Foreign: Facing The Current Financial Difficulties4 British American Tobacco: Organization Overview4

British American Cigarette: Negative Image5

SWAT Evaluation: Philip Morris5

SWAT Evaluation: British American Tobacco8

Market Overview

Tobacco and cigarette business must be one of the most lucrative in the world: this year the combined profits of six leading tobacco corporations were 35 dollars billion, which has been equal to the profits of such multinational leaders as Coca-Cola, Microsoft and McDonald's invest together. After having a number of mergers and purchases that took place during the nineties and 2000s, the global cigarette market is centered by several multinationals: Philip Morris Intercontinental, British American Tobacco, Asia Tobacco Foreign and Real Tobacco. China National Cigarette Corporation, which in turn holds a near-monopoly in Chinese cigarette market, is a world's major cigarette developer.

Despite amazing profitability and high net worth, the overall picture of the sector will not look that good: Excluding the sales data from China, the total volume of cigarettes that was sold in 2013 decreased by 4%, ongoing the trend that started in 2010.

E-Cigarettes: A Threat or perhaps an Opportunity intended for the Smoking cigarettes Industry

E-cigarettes are smoke-free, tobacco-free customer goods offered as an alternative to classic cigarettes or maybe a tobacco damage reduction merchandise. In the past few years, and especially starting from 2013, the product sales of e cigarettes increased significantly, taking various people in the market by surprise. In line with the multiple research conducted by simply Action upon Smoking and Health (ASH), only in the united kingdom, the number of folks who use electronic digital cigarettes frequently had tripled over the past 2 yrs and had come to 2, you million people. 1 A tobacco analyst from Bore holes Fargo, Bonnie Herzog forecasts that the product sales of e-cigs in the US and Europe will certainly surpass the sales of traditional cigarettes in the next ten years. 2 The necessity for e-cigarettes has increased via a few 1000 users 5 years ago to several , 000, 000 globally, and now consumers possess over 200 brands in the market. E-cigarette sales were believed to reach $1, 5 billion dollars, and best $10 billion by 2017.

China, the world's largest producer and consumer of any nicotine products, might end up being the biggest marketplace for e cigarettes in the nearby future: regarding 1, a couple of million people die every year from disorders associated with the cigarette consumption. Even if 1% of the total people who smoke and will opt to switch to e cigarettes, it would make a market pertaining to 3, your five million ecig users. 3

The potential for e-cigarettes is to improve public well-being, deliver pure nicotine without intoxicating the person who have uses this. In the future, it might either work effectively and become as common because the conventional cigarette, or it could end up as one of the new developments, which do not stay long, plus the smokers will continue consuming good old regular tobacco items.

Source: UBS, Wells Fargo, Tobacco Vapour Electronic Cigarette Connection Research Particular date: February next, 2015

Philip Morris: Firm Overview

A brief history of the business traces back to 1847, the moment Mr. Philip Morris acquired opened an individual shop in Bond Street in London pertaining to selling tobacco and ready-made cigarettes. After his loss of life the business was taken over his wife and his brother, and so the company continued operation as being a family business. In 1881 the company went public and 1894 that left the control of Morris family. In 1902 it incorporated in New York and the ownership was split 50-50 between the United kingdom and American partners. The entire year 1919 became a critical justification in the history in the company: first Philip Morris logo...