Porter's 5 Force Model-Cigar Industry

Porters Five Force Model compendium For Indian Cigarette Industry 1. Threats of New Entrants=LOW New carrefour oppositeiation Very Tough already cigarettes at different price points, flavors, brand images Access to distri unlession channel is lout big & established players are present (e.g. ITC) crown requirement is very high for a pan India initiation; Local launch can non catch up scale Cant use Economies of scale Government insurance high tax, no TV/Radio Ads 2. Bargaining former of Suppliers=LOW many another(prenominal) inputs are required but in gauzy amount paper, tobacco, filter There are many picayune scale, unorganized suppliers Cigarette companies are big and have account access to distribution channel and addicted buyers. Suppliers dont have much control over smokers. 3.

Bargaining situation of Buyers=LOW Addicted customers - even after k instantaneouslying harms muckle cant leave it Smoking has lot of typic and emotional values attached with it Product quality not much important to smokers Research shows most people cannot describe among the brands in a blind taste Low transposition costs in terms of price 4. Threat of ministration Product=LOW Herbal Cigarettes (e.g. Nirdosh) were launched but did not bend popular (no emotional value) Nicotine patch is another substitute but again no comparison with cigarettes in terms of popularity and manipulation 5. Competitive Rivalry in the Industry=HIGH Many competing players: ITC, Godfrey Philips, VST, GTC etc - see chart below Price competition continues Advertisement for cigarettes is now prohibited in India Replacement for ads event sponsorships and sales promotions each making new product launches If you want to get a full essay, order it on our website: Ordercustompaper.com

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