Tobacco Industry Competitive Analysis: UK Market Report

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The tobacco industry came into power by
the increased sale rate of cigarettes. The
sale of cigarettes has helped in unfavorable
consequences (Berteletti and Friedlaender,
2017). The impacts of tobacco have been
huge, as the consumers are demanding for
economy brands, rather than mid priced or
premium ones. The major competitive
players are the production of E-cigarettes
and less priced tobacco products like
Imperial Tobacco Company, British
American Tobacco Plc and e-cigarettes
Company like MarkTen, XL, and Logic can
poses threat to the company
Supplier Power- the supplier’s power is very
prominent and high in the Tobacco Industry.
The personal & Household Goods Industry of
the United Kingdom buys their products from
multiple suppliers.
Buyer Power- The buyer power is high in the
Tobacco market, as the customer has high
demands on economy brands rather than
medium or premium sized brands.
Entry and Exit Barriers- The entry of new
competitors are considerably low in United
Kingdom. The tobacco industry in United
Kingdom sells products in a much higher rate,
the marketing, distribution costs are much high.
The usage of e-cigarettes is quite high as they
are less harmful but gives the same feeling as
the normal cigarettes. There are 2.4 percent of
adults in the United Kingdom who uses e-
cigarettes in the replacement of normal
cigarettes which have reduced the smoking rate
by 58.8%.