Business Strategy 1 Analysis 2022

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Business Strategy
[Type the document subtitle]
8/27/2019
Student name

Business Strategy 1
Contents
1. Introduction..................................................................................................................................2
2. Strategic market analysis.............................................................................................................3
21. Porters five force model.........................................................................................................3
2.1.1 Threat of new entrants....................................................................................................3
2.1.2 Bargaining power of buyers............................................................................................3
2.1.3 Bargaining power of suppliers........................................................................................3
2.1.4 Threat of substitute.........................................................................................................4
2.1.5 Industry rivalry...............................................................................................................4
2.2 McKinsey 7’S internal capabilities........................................................................................5
2.3 Opportunity and Threat summary..........................................................................................6
2.4 Problem and opportunity statement.......................................................................................6
2.5 The strategy development process.........................................................................................9
3. Evaluation of tobacco industry marketing strategies.................................................................10
3.1 Product life cycle.................................................................................................................10
3.2 Segmentation, targeting, and positioning............................................................................11
3.3 Product market strategies.....................................................................................................12
3.4 BCG matrix..........................................................................................................................13
4. Conclusion.................................................................................................................................15
References......................................................................................................................................16

Business Strategy 2
1. Introduction
Business strategy of the company is one of the crucial decision making an aspect, which needs to
be as per the current scenario in order the business perform better in the industry. This also
includes implementation of the key objective and goals that include providing direction to the
company. The purpose of the report is to understand the critical aspects of the tobacco industry
and to conduct the strategic market analysis that will include situational analysis of tobacco
industry and understanding the opportunity and threat (Baker & Bowen, 2015). Moreover, the
marketing strategies in the tobacco industry will be evaluated in the report further.
The consumption of tobacco is found to be an addiction among the people, which also reflect in
the profitability of the companies in the industry. Moreover, it has been identified that most of
the tobacco consumers live in low and the emerging market includes middle-income nations.
Some of the key players in the industry are Phillip Morris international that is American brand
with a market share of 14.1% in cigarettes market. British American Tobacco is another tobacco
company in London that is operating in more than 200 markets with 11.8% market share.
Imperial tobacco group is another British company that has large control over the international
tobacco industry (tobaccofreekids, 2019).

Business Strategy 3
2. Strategic market analysis
21. Porters five force model
The five forces of porters include
2.1.1 Threat of new entrants
The industry is very competitive which also reflect that people looking out for opportunity
would be high in this industry. However, the legal regulation considering the tobacco industry is
very strict, which may be one of the barriers for company to enter into industry. Therefore, threat
of new entrants is medium threat for the existing companies (Dobbs, 2014).
2.1.2 Bargaining power of buyers
Tobacco is one of the addicted products, which reflect that the people would purchase the
product even if the price were increased, and brand loyalty is high that also decrease the
bargaining power of buyers (Betton, 2017).
2.1.3 Bargaining power of suppliers
The companies may reduce the threat of supplier negotiation power by increasing the number of
the supplier. Therefore, the threat from the suppliers is low. The reason being Main raw
materials essential for the production of cigarette are cut tobacco, tobacco leaves, tipping paper,
cigarette filter, cigarette paper, aluminium laminated paper whiteboard, and glue (prnewswire,
2018).