Last Updated 12 May 2020

Competitive strategies of the Company in the Tobacco industry

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According to John Tomlinson in globalization and culture he argues that, globalization lies at the heart of modern culture and cultural practices lies at the heart of globalization. He says that business globalization has led firms that operate and invest in a global scale to transform patterns of trade and shape the interactions between them for example through mergers. Business environment analysis is very crucial to businesses and marketing managers have the duty to formulate good policies that help the organizations to withstand competition.

(Knight, 2007) With particular regard to BAT Company environmental analysis, it is evident that the company has had some competitive strategies that have enabled the company to perform well in the tobacco industry. The company has adopted competitive generic strategies that have enhanced the company’s competitive advantage over its rivals like the Marlboro Company. These competitive strategies have enabled the company to create and sustain a justifiable position in the tobacco industry.

BAT Company has formulated competitive strategies that have enabled the company to compete across the entire market of tobacco industry which is evident in the way it has diversified to various countries. Because of such strategy, BAT Company has a strong brand name which helps the organization to have a competitive advantage over the other tobacco producing companies like the Marlboro Company which is the BAT main competitor.

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According to latest research, the company has investments nearly all over the world, which has led to the success of the company. Customers of tobacco products purchase mostly those products like cigarettes associated with BAT Company. The company is said to be an overall low cost producer in the industry and it has competed well by gaining a large market share by lowering the prices of tobacco product. (Hill, 2005)

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