Big Tobacco 's E Cigarette Dilemma Essay

944 Words Sep 15th, 2015 4 Pages
September 15, 2015
Joshua Tarlow
BA 3103-010
T&R, 11:00Am-12:20PM
Big Tobacco’s E-Cigarette Dilemma
Background
Cigarette use in the United States has steadily declined from its peak of 42 percent in 1965 to 18 percent in 2013. Smoking rates for users under the age of 18 are also at record lows, presenting potential problems for tobacco companies in the future. Approximately 90 percent of smokers start before the age of 18, while 99 percent start by the age of 26 . If this trend continues, tobacco companies will continue to experience a decline in the smoking rate. Recently, e-cigarettes have begun to fill this void appealing to a young demographic. More adolescents are now likely to try an e-cigarette than a traditional cigarette. Excluding regulation, e-cigarettes represent the first serious threat to the Tobacco Industry. The Tobacco Industry finds itself in a similar position to many other companies threatened disruptive by technologies. The Tobacco Industry has managed to remain highly profitable despite all of decline in smoking The top four tobacco companies ended 2014 with $32 billion in pretax profit . China is a large contributor to continued profitability of the Tobacco Industry. Cigarette consumption in China has been rising steadily over the past three decades, now consuming more cigarettes annually than the next 29 countries combined. China now accounts for over 28 percent of the world’s smokers . Rising tobacco use in China has helped to counter the decline…

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