E-Cigarette

1180 WordsOct 7, 20155 Pages
BA 3103-015 Critical Analysis Paper: 1 E-CIGARETTE 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 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…
Now we have seen the trends and analyzed the e-Cigarette industry its time to look at they SWOT of why big tobacco companies are betting in this particular market. SWOT With the SWOT analysis we can start to form a basis of why tobacco companies moved into the electronic cigarette market. One of the biggest strengths of these tobacco companies is their ability to adapt with the times and seeing how e-cigarettes are becoming increasingly popular even generating over two billion dollars in sales posed as a good investment opportunity. SWOT Analysis on why big tobacco companies are betting on e-cigarettes Strengths * Immense amounts of capital to invest * Already in a similar industry * Willingness to adapt with the times | Weaknesses * Learning curve of the new product and accessibility | Opportunities * Young and unregulated market * Room for growth and development | Threats * Potential competition with its original market * Health administrations * Other small competitors | Since they are large tobacco companies they have the funds to tap into the market unscathed regardless how the investment turns out. Another strength for these companies is that they are in a similar market and already have the insight on how to properly enter the market. One weakness with tobacco companies entering the market is the consumers who have yet to try these devices. Being electronic and reachable might deter a
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