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 cigarette 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 marketing strategies • Compensation expenditures • Shrinking old markets in developed countries • Growing new markets in developing countries
- Social 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 new Technologies • Comprising new advertisement methods through internet
* SWOT ANALYIS
- Strengths
• Company’s strong financial budget • Well known brands in cigarette 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
STRATEGIC ANALYSIS 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. • 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 marketing strategies • Compensation expenditures • Shrinking old markets in developed countries • Growing new markets in developing countries
- Social 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 new Technologies • Comprising new advertisement methods through internet
* SWOT ANALYIS
- Strengths
• Company’s strong financial budget • Well known brands in cigarette 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