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Phoo Kim, Katherine Romero, Jacqueline Nunez, Ajun K, Rostand

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Phoo Kim, Katherine Romero, Jacqueline Nunez, Ajun K, Rostand

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Threat- new vaping companies
Bargaining power buyers- Yes, there are different types of tobacco companies that offer similar products that customers can always substitute
Threat substitute- Vaping pens, hookah
Bargaining power of suppliers- There is high competition between suppliers because they all offer the similar products

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Is it likely that a new company could disrupt their business?

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Can buyers of their product and/or service walk to another company that offers a similar product and/or service

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Is there another product and/or service that buyers can use that replaces this one?

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Rivalry among existing competitors? Are other competitors in the industry of equal or lesser might (size, resources, number of competitors).

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Threat(new entrant): yes, vape products could interrupt their sales.

Bargaining power: there are not a lot of other choices but there are a few. If consumers are willing to try cigarette alternatives there are lots of other choices.

Threat(substitute): yes

Bargaining power(suppliers): there are competitors suxh as altria, BTI, diageo and pepsico

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The biggest threats to entrants are substitutes such as nicotine pouches and vaping alternatives. Even "safer" cigarettes like American spirits.

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Threat of New Entrants: Highly unlikely that an entrant would be able to take any significant market share from PMI in a developing country. Western markets already saturated.

Bargaining Power of Suppliers: Low, assuming that PMI has many suppliers which it can leverage.

Threat of Sub. Service: Vapes in some markets could disrupt cig. sales. PMI also makes e-cigs in some markets (NZ, AU)

Bargaining Power of Buyers: High, because PMI does not make a distinct products, only perceived value is perceived quality by the consumer.

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Threat of new entrants- alcohol, vape, nicotine gums, hookah industries are all threats

Bargaining power of buyers- yes, there are multiple different tobacco brands

threat of substitution- alcohol and vapes (elf bar)

bargaining power of suppliers- they have a huge control of the industry and over the population that smokes

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Threat (New): not likely bc of the market share of the entire industry
Bargaining (Buyer): yes, people can prefer different competitors even though there’s not much differences compared to other companies
Threat (Sub): not high
Bargaining (Supplier): farmers don’t have lots of power

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New entrant: Companies coming out with new vape/e-cigarrette products that appeal to other ages like younger people. There seems to be five main companies who make up 90% of the tobacco market.
Bargaining product/ buyers: Depending on the place you buy products, there are more brands available and someone might go with whatever is cheapest.
Threat subsitution: Vapes and nicotine products are becoming alternatives for people who do not want the effects of tobacco.
Bargaining power - suppliers: The main competitors are Altria Group, British American Tobacco and Reynolds American.  These companies seem to be pretty close to them.