An American global Cigarette and tobacco company. Products sold in over 200 countries. Goals Provide high quality and innovative products to adult smokers, generate superior returns for shareholders, and reduce the harm caused by smoking while operating our business sustainably and with integrity. Performance 16. % share of the total international cigarette market outside of the United States, or 28. 8% excluding the People’s Republic of China and the United States. Brands Marlboro, L&M, Bond Street, Philip Morris, Chesterfield, Fortune, Parliament, Sampoerna A, Lark, Morven Gold, Dji Sam Soe, Nex, Optima, Red & White, Muratti, Diana, Merit, Sampoerna Hijau, Champion, Virginia Slims, Apollo-Soyuz, Hope, Delicados, Benson & Hedges, Longbeach, Oasis sprit of Baisha Cigarette Market Share of Korea in 2012 2. SWOT of PHILIP MORRIS INTERNATIONAL Strengths 1. High Market Share . Various Products 3. Loyal customers 4. Strong Management Team 5. Strong Brand Equity 6. Successful R&D Investment 7. Domestic Production Line Weaknesses 1. High Labor Cost 2. Double Delivery Structure Opportunities 1. High Smoking Rates 2. Lots of cigarette shops Threats 1. Political Restriction 2. High Tax 3. Competition with other companies 4. Non smoking Trend 3. STRENGTHS of PHILIP MORRIS INTERNATIONAL Various Products Marlboro Parliament Lark Virginia Slims Oasis sprit of Baisha Loyal Customers Source from Philip Morris Korea Successful R&D Investment
Developed various Cigarette flavor Developed various concentration of nicotine and tar Establishing R&D center in Neuchatel, Swiss Researching for Smoke and Smoke Constituents, The Tobacco Plant, Understanding Disease Mechanisms, and Assessing Risk Reduction Potential 4. WEAKNESSES of PHILIP MORRIS INTERNATIONAL High Labor Costs & Double Delivery Structure 5. OPPORTUNITIES of PHILIP MORRIS INTERNATIONAL High Smoking Rates 2nd Highest Smoking Rate Country in OECD Members 68. 2%15+ Male Smoking rate 6. 7%15+ Female Smoking rate The Lowest Tobacco Price Country in OECD
Lots of Cigarette Shops 6. THREATS of PHILIP MORRIS INTERNATIONAL Political Restriction Prohibit smoking in public place Increasing cigarette price more than 150% Increasing charge Only domestic tobacco can be sold in military base Imposing tax to foreign brand tobacco Competition Compete with Domestic brands which are cheaper than PHI’s products Non Smoking Trend People are interest in Health Care Source from OECD; http://www. oecd. org/statistics 7. Conclusion Developing methods for Keeping Customers Sustainably and Reforming Inefficient Distribution Structure through the Integration.