Revenue from high-profit products such as tobacco scored a 4 for each strategy. Tobacco is a very lucrative industry, and PMI is one of the top earners in the world. The revenue from tobacco has proven to be very acceptable for each strategy as Marlboro has already begun to expand through innovation with e-cigarettes and HeatSticks. India is not primarily a cigarette smoking country; however, they use tobacco heavily in different forms such as bidis.
High rate of returns to investors was rated a 0. Any revenue will be an advantage to investors in the long run, but investors are the back end of the business leaving the marketing and development teams to decide where to expand or be innovative. Therefore, the alternatives scored as not relevant …show more content…
The reason for a 3 for India is that the country has production facilities already present making the factor probably acceptable, and PMI has facilities worldwide that could manufacture and produce next generation technology as well as brand migration.
Reliance on shrinking markets scored a 1 for expanding Marlboro through next generation as trying to expand a brand by relying on a shrinking market is difficult. The alternative for expansion into India was scored a 2 because India is a market that could still grow in cigarette sales volume if existing tobacco users switched products.
Limited ability to affect adverse operating environments was scored a 2 for each strategy. With PMI being a large company and having large market shares they have the ability to offset the weakness using other resources making this factor possibly acceptable for both strategies.
Counterfeiting market share was scored a 1 for each strategy making this factor not acceptable. Counterfeiting could happen regardless of either strategy taking place, but this factor is not acceptable to either strategy as it will hinder PMI’s revenue …show more content…
E-commerce is continually growing across the world, making shopping for products easier for consumers. In most countries, access to the internet through computers, smartphones and many other types of technology has made it easier people to choose e-commerce. This creates an opportunity to increase sales for the expansion of Marlboro through next generation technology. Online shopping in India continues to grow. Studies showed a number of internet users were to have increased to 302 million users by the end of December 2014, up 32% from 2013. This gives Indians the ability to expand their buying power to products manufactured outside of the areas where they must shop in person.
Emerging markets are expected to see 10-year increase in smokers scored a 2 for expanding Marlboro through next generation as Marlboro is so well known this is possibly acceptable for new emerging products. This factor scored a 4 for expansion into India as Marlboro is a strong, premium brand. Since the Indian cigarette market would be targeted for growth under the second alternative, this factor is considered most
High rate of returns to investors was rated a 0. Any revenue will be an advantage to investors in the long run, but investors are the back end of the business leaving the marketing and development teams to decide where to expand or be innovative. Therefore, the alternatives scored as not relevant …show more content…
The reason for a 3 for India is that the country has production facilities already present making the factor probably acceptable, and PMI has facilities worldwide that could manufacture and produce next generation technology as well as brand migration.
Reliance on shrinking markets scored a 1 for expanding Marlboro through next generation as trying to expand a brand by relying on a shrinking market is difficult. The alternative for expansion into India was scored a 2 because India is a market that could still grow in cigarette sales volume if existing tobacco users switched products.
Limited ability to affect adverse operating environments was scored a 2 for each strategy. With PMI being a large company and having large market shares they have the ability to offset the weakness using other resources making this factor possibly acceptable for both strategies.
Counterfeiting market share was scored a 1 for each strategy making this factor not acceptable. Counterfeiting could happen regardless of either strategy taking place, but this factor is not acceptable to either strategy as it will hinder PMI’s revenue …show more content…
E-commerce is continually growing across the world, making shopping for products easier for consumers. In most countries, access to the internet through computers, smartphones and many other types of technology has made it easier people to choose e-commerce. This creates an opportunity to increase sales for the expansion of Marlboro through next generation technology. Online shopping in India continues to grow. Studies showed a number of internet users were to have increased to 302 million users by the end of December 2014, up 32% from 2013. This gives Indians the ability to expand their buying power to products manufactured outside of the areas where they must shop in person.
Emerging markets are expected to see 10-year increase in smokers scored a 2 for expanding Marlboro through next generation as Marlboro is so well known this is possibly acceptable for new emerging products. This factor scored a 4 for expansion into India as Marlboro is a strong, premium brand. Since the Indian cigarette market would be targeted for growth under the second alternative, this factor is considered most