Swat Analysis Tobacco
Strengths
Strengths ’s what an organization can do to keep the company maintain healthy. there are three major strengths. First, As we know tobacco companies are growing under lots restrictions. Reynolds American Inc (Camel and Pall Mall) has $309 million profit in 2011, it’s increased 43.7% than 2010. Altria Group Inc. (Marlboro) has $919 million profit in 211, it’s increased nearly 27% than 2010. Second, Big tobacco companies use their brand strategy to remain remarkable healthy. Tobacco companies has consistent revenue growth because companies use 80:20 rule (80% of profits are generated by 20% of consumers) to hold up their remarkably well. Moreover, The ban is least likely affect to smokers. For some people, smoking has become an ingrained habit. Smoking helps people to be more “relax” under high pressure. Base on government’s action (Ban on Advertisement), tobacco companies is falling in sale volumes, but these companies use major prices rises to help companies keep the in strong cash flows. Third, Tobacco companies have wide product portfolio. The products is sold to satisfy customers. And let consumers to enjoy their high quality product.
Weaknesses
Weakness is what an organization cant do. Every business is strived to maximum their profit and grow big. To do so, either increase sales or reduce expense. Therefore, Increasing operation expense is one of tobacco business least likely to do. Also, another weakness on tobacco is banned on TV, radio, and limited area to smoke.( Government’s action).“In 2000, the 4m people who died as a result of cigarette smoking were evenly divided between rich and poor countries. By 2030, 70% of the 10m consumers who die from smoking will come from developing countries.” Government have intervened to protect people’s health issue.
Opportunities
Opportunities is potential