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Phillip Morris Company

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Current Competitors and the Competitive Landscape

The tobacco industry has undergone numerous revolutions with tobacco companies fighting to control the markets with their products. Large companies such as Philip Morris, Brown and Williamson, Lorillard and RJ Reynolds have continued to compete in the selling of tobacco products but the Electric cigarette was invented to counter the tobacco addiction. The electronic cigarette has been mainly traded by smaller companies and the huge companies never saw it as a threat to their business; however the huge companies now want to share the markets ofthe E-cig as it has become renowned.

Once the Ruyan E Cigarette Company allows the Phillip Morris manufacture the E-cig there will be much advantage to the Phillip Morris Company since it is a large multinational firm against the small less established firms. Its marketing chain is already established and has a large base of customers who are already tobacco users i.e. cigarette smokers. They will be able to purchase the product from the same outlets they purchase the cigarettes from and hence beat all small competitors.

Other huge multinational companies such as Brown and Williamson, Lorillard and RJ Reynolds will pose a threat too the establishment of the business but they also have their niche where they sell their products. Although the sale of the E-cig may impact negatively on the sale of the cigarettes since it aids smokers to stop smoking they will be make more sales to supplement those sales. This will include marketing the E-cig to the market niche of other tobacco companies who are their competitors.

There is need for a paradigm shift in the tobacco industry to create a new market landscape which will attract more customers to the business. The shift will be generated by products such as the E-cig which will portray a positive image of the company.

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