Strategic Analysis for Philip Morris

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Mehmet Burkay



- 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


- 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 Competitor...
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