Porter's 5 Forces
Tobacco Manufacturing Industry Analysis
By
Brandon Detweiler, Chris Holt, Michael McGee
Table of contents
Part I: Two Publicly Traded Business Rivals……...…………………………………………………….2
Part II: Opportunity………………………………….…………………………………………………...2
1. Industry Description…………………………………………………………………………2
2. Industry Demand……………………………………………………………………………..4
Part III: Industry Analysis………………………………………………………………………………..4
1. 5 Forces………………………………………………………………………………………..4
2. Low Power Forces……………………………………………………………………………7
3. Key Success Factors………………………………………………………………………….7
4. One KSF……………………………………………………………………………………....9
Part IV: Strength Assessment………………………………...…………………………………………10
1. KSF Calculations……………………………………………………………………………10
2. Distinctive Competency Scores…………………………………………………………….11
3. Average Distinctive Competency Scores…………………………………………………..11
4. Summary…………………………………………………………………………………….11
Bibliography……………………………………………………………………………………………...12
Part 1: Describe Two Publicly Traded Business Rivals
1. This paper discusses two of the largest tobacco companies in the world, Altria Group and Reynolds American Incorporated. Altria Group is located in Richmond Virginia at 6601 West Broad Street (Altria). Mike Szymanczyk, who is the Chairman and Chief Executive Officer of the Altria Group said, “Altria understands that industry leadership means more than just financial strength and brand performance. Our companies have a history of taking proactive and voluntary actions that have changed the way the tobacco industry operates. With continued guidance from Altria’s Mission and Values, our companies can discover more ways to responsibly grown and succeed.” Reynolds American Incorporated is located in Winston Salem North Carolina at 401 North Main Street (Reynolds American). The President and Chief Executive Officer of Reynolds said, “Given the significant health risks that have been associated with the use of tobacco, many people would argue that
By
Brandon Detweiler, Chris Holt, Michael McGee
Table of contents
Part I: Two Publicly Traded Business Rivals……...…………………………………………………….2
Part II: Opportunity………………………………….…………………………………………………...2
1. Industry Description…………………………………………………………………………2
2. Industry Demand……………………………………………………………………………..4
Part III: Industry Analysis………………………………………………………………………………..4
1. 5 Forces………………………………………………………………………………………..4
2. Low Power Forces……………………………………………………………………………7
3. Key Success Factors………………………………………………………………………….7
4. One KSF……………………………………………………………………………………....9
Part IV: Strength Assessment………………………………...…………………………………………10
1. KSF Calculations……………………………………………………………………………10
2. Distinctive Competency Scores…………………………………………………………….11
3. Average Distinctive Competency Scores…………………………………………………..11
4. Summary…………………………………………………………………………………….11
Bibliography……………………………………………………………………………………………...12
Part 1: Describe Two Publicly Traded Business Rivals
1. This paper discusses two of the largest tobacco companies in the world, Altria Group and Reynolds American Incorporated. Altria Group is located in Richmond Virginia at 6601 West Broad Street (Altria). Mike Szymanczyk, who is the Chairman and Chief Executive Officer of the Altria Group said, “Altria understands that industry leadership means more than just financial strength and brand performance. Our companies have a history of taking proactive and voluntary actions that have changed the way the tobacco industry operates. With continued guidance from Altria’s Mission and Values, our companies can discover more ways to responsibly grown and succeed.” Reynolds American Incorporated is located in Winston Salem North Carolina at 401 North Main Street (Reynolds American). The President and Chief Executive Officer of Reynolds said, “Given the significant health risks that have been associated with the use of tobacco, many people would argue that
Bibliography: Altria Group, Inc. Form 10-K. United States Securities and Exchange Commission, 19 Feb. 2010. Web. 25 Nov. 2010. . Altria Group Inc. (MO). Financial Statements Analysis. Short-term (Operating) Activity Analysis." Stock Analysis on Net. 2010. Web. 18 Nov. 2010. . Altria. Web. 19 Nov. 2010. . Altria Group, Incorporated - Company Report US. Rep. Jersey City: IbisWorld, 2010. Print. Reynolds American Inc. - Home. Web. 19 Nov. 2010. . Reynolds American, Incorporated - Company Report US. Rep. Jersey City: IbisWorld, 2010. Print. Stock Report: Reynolds American Inc. Rep. New York: Standard & Poor 's, 2010. Standard & Poor 's. Web. 17 Nov. 2010. Reynolds American, Inc. Form 10-K. United States Securities and Exchange Commission, 19 Feb. 2010. Web. 25 Nov. 2010. . Stock Report: Altria Group Inc. Rep. New York: Standard & Poor 's, 2010. Standard & Poor 's. Web. 17 Nov. 2010. Schreibfeder, Jon. "Why Is Inventory Turnover Important?" Effective Inventory Management. Web. 18 Nov. 2010. . Young, Greg. Industry Analysis. North Carolina State University, 11 Oct. 2010. Web. 1 Dec. 2010. . Young, Greg. Review for Team Research Paper. North Carolina State University, 17 Nov. 2010. Web. 1 Dec. 2010. . Porter, Michael. "Porter 's Five Forces." http://www.quickmba.com/strategy/porter.shtml. QuickMBA.com, 2010. Web. 29 Nov 2010. .