Critical Analysis Paper: 1
Big tobacco companies are betting on e-cigarettes. Why are tobacco companies investing in a product that will directly compete with their most profitable product, cigarettes? With the use of these analytical frameworks it will help us to better understand this situation.
PEST Analysis of Global Trends – 2011-2016 Political * Increased emphasis in healthcare | Economic * Recovering/Growing | Social * Health conscientiousness | Technological * Battery life advances * Material utilization * Portability |
Beginning with the PEST Analysis we can get a macro perspective on the trends. There has been a global …show more content…
Industry rivalry is high in this market. There are many competitors with stores offering a large array of different brands to customers. According to statistics Njoy has 32% market share, Vapor (Krave) 16%, Metro 6%, Blu only has 2% while the rest of the market has 41% share with numerous smaller companies competing. Same with buyer power, due to the competition and low switching costs the threat is also high. The highest threat to this industry would the rather large amount of substitutes to this product. Smoking can be done in so many ways with so many instruments including thank