MGT603 Strategic Management Assignment No. 01 Fall 2014 Ideal Solution

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MGT603 Strategic Management Assignment No. 01 Fall 2014 Ideal Solution & Discussion Close Date December 02, 2014


“Industry Analysis”
Assignment
For a long time, the tobacco industry was seen as a static and unprofitable one.
Between the late 1980s and 2000 most of the tobacco producers were working at
national level which were often state owned and frequently unsuccessful. However
more than 05 independent Tobacco companies’ went into loss and ultimately
collapsed.
In 2006 PTC Tobacco Company paid 50 million to buy tobacco from its local market and
ultimately became the Pakistan largest Tobacco Company. During the following year
LAKSON Tobacco bought 20 million tobaccos from its local market.
New entrants
In the last 5 years Khyber Tobacco got more popularity in the target market and
SUNAIR Tobacco had been investing in new production facilities.
Substitutes
There is much technology involved in the industry and now companies bring new
machines. KTC got new technological best filter rod machine as a substitute machine in
filter of cigarette.Buyer power
Buying power of cigarette is in the age bracket of 18 to 30 years. So now every Tobacco
company is reducing its prices.
Competitive rivalry
Every company wants to get maximum profit form its target market. For this purpose,
they do more advertisement, good packaging and especially reduce their prices.
Supplier power
Most of the Tobacco companies have their own suppliers.
The Requirement:
According to porter’s five forces model, which forces have more positive impact on
Tobacco industry and which have negative impact on it?
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