Threats faced by the tobacco company is the raise of awareness on the hazard of smoking and the big increament in taxes. The awareness campaign usually came from the local government which tax is paid to. On the other hand, number of smokers keep on rising each day eventhough the proggresive campaign towards the awareness of hazards of smoking. Several resistance towards the development of tobacco company. Like wise, the company has to raise the good image of their company. By doing this, the bad image as a tobacco company which lead to unhealthy life style will be reduce. They tried to emerged with a lot of positive approach towards the effort on banning smoking in public area.
The world tobacco industry generated sales of almost $721 billion in 2010 according to analyst. Cigarettes represent the leading market segment with revenue exceeding $681 billion, which accounts for almost 95% of the overall market. The yearly rate of market growth is expected to accelerate to be 4.5% until 2015, bringing the market to almost $890 billion.
The tobacco market involves the retail of tobacco, cigarettes, cigars, cigarillos and chewing tobacco. There are currently around 1.3 billion smokers in the world; this figure is expected to climb at a rate of almost 4% per year. Tobacco is grown in over 120 countries worldwide, using close to 4 million hectares of total agricultural land available globally. Around 12 million cigarettes are smoked every minute around the world.
Around 35% of men in developed nations smoke, compared with 50% of men in developing nations. About 22% of women smoke in developed nations, compared with less than 10% in developing nations. Cigarettes represent the largest share of the tobacco market in sales volume and value. Though consumption levels have fallen, the absolute number of smokers has been climbing along with the global population and disposable incomes, reports Global Industry Analysts. China is the largest regional...
Please join StudyMode to read the full document