Tobacco Oligopoly

Topics: Cigarette, Altria Group, Marlboro Pages: 2 (435 words) Published: April 25, 2011
Market share, U.S. cigarettes 2002
CompanyU.S. Brands Market share
Philip Morris (Altria)Marlboro, Basic, Virginia Slims, Benson & Hedges (in U.S.), Merit, Parliament, Alpine, Cambridge, Bristol, Bucks, Commander, English Ovals, Saratoga, Superslims49.4% R. J. ReynoldsCamel, Doral, Winston, Salem, Vantage, More, Now, Century, Ritz, Monarch, Magna, Sterling22.9% BAT/Brown & WilliamsonGPC, Kool, Viceroy, Raleigh, Barclay, Belair, Capri, Richland, Pall Mall, Lucky Strike10.0% Lorrillard (Loews)Newport, Kent, True, Old Gold, Max, Style, Satin, Triumph, Montclair, Malibu, Riviera, Crowns, Special 10's, Bull Durham8.2% Liggett & MyersL & M, Lark, Chesterfield, Eve, Pyramid2.3% OtherPeter Stuyvesant, Rothman's, Dunhill, Best Value, USA Gold, CT, Durant, Palace, Magic, First Class, Cabin, etc.7.2%

This research is being submitted on May 2, 2010, for Professor Raymond Bell’s MBA 611 course at Benedictine University by Chayleen Marquis. The cigarette market is one that is known to everyone. From magazine advertisements to constructive commercials people have been exposed to this market starting at a young age. The constant visuals of the advertisements as well as the free advertising that occurs daily with people smoking outside their office, in their car, and outside the night life scene the cigarette market has a benefit of using the free advertising as a benefit to their company at no cost. The cigarette market is a clear example of an oligopoly market because it is mostly run by a few large firms such as Philip Morris USA, Commonwealth Inc, Lorillard Inc and Reynolds American Inc. Due to the fact that an oligopoly market is hard to not only come into but also basically controlled by these large firms any new competitor is going to have a difficult time entering this market, being profitable in comparison to these firms and really having any type of say in the price or the output. A benefit of being an oligopoly is the fact that the prices are...
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