Business Strategy : Phillips Morris And R.j Essay

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Introduction Phillips Morris and R.J. Reynolds are two of the most profitable businesses in the tobacco industry. Both companies have been established for many years and want to increase revenues. However, both have the same level of advantages and disadvantages, due the similarity in product being produced. As rivals, and competing for an increase in consumers, strategies are required to meet corporation goals. Both companies have a successful selling performance. But, marketing strategies can make the difference in increase revenues. Since they are adversaries in the tobacco market, the Prisoner’s Dilemma game, the notion of Dominant Strategy, and the concept of Nash Equilibrium will be utilized to asses who has more chances in success and how. The interesting aspect of these strategies is that one tobacco company could have a correlation or dependency on the rival’s actions. The best strategy will reveal what’s convenient according to the options available.
Strategy Concepts Trying to anticipate and deduce the opponent’s business strategy is always present in the business field. Three of the most used concepts for understanding and efficiently applying strategies are Prisoner’s Dilemma game, Dominant Strategy and Nash Equilibrium. Where three influences are important in Game Theory. They must have players (Phillips Morris and R.J. Reynolds), strategies (Advertise or Not advertise), and outcomes (High profits or low Profits). The Prisoner’s Dilemma is a concept that
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