SWOT Analysis

Topics: Tobacco, Tobacco industry, Free cash flow Pages: 4 (1179 words) Published: April 13, 2015
SWOT Analysis
It is used to examine BAT's business structure and operations, history and products, revenue and strategy. Strengths
Strong Market Position
BAT is the second most leading tobacco producer. It functions through 50 factories across 41 countries, producing 724 billion cigarettes per year. By having more than 250 brands, it posses strong market stance in respective regions and maintaining leadership in more than 50 markets amongst 180. About more than 5,500 billion cigarettes are being produced globally by the tobacco industries, 45% of the global market. According 2009, BAT has 13.0% of market share in comparison to China National Tobacco Co., Philip Morris International, Japan Tobacco International, Imperial Tobacco and others of 41.4%, 15.5%, 10.8%, 5.8% and 13.7% respectively. Due to advantage in multiple tasted brands, products' demand is high and hence, key strength for BAT. Geographically Diversified

BAT has expanded its business geographically and hence established growth opportunities in global market by 50 factories scattered across 41 countries and have no operability dependencies between the regions. According 2010 figures, Eastern and Western Europe have 27.3% and 11.6% revenue respectively; Americas have 22.1%, Asia-Pacific of 23% and Africa & Middle East has 16% of revenue. Nevertheless, BAT does not refrain from developing its business opportunities into rising markets, like, China where number of smokers presents opportunity for its profit. Control over Tobacco Leaf

BAT, only international tobacco industry showing considerable interest in tobacco leaf processing and ensure adequate supply by covering about 254, 400 hectares under cultivation. The subsidiaries countries also have leaf-processing programmes including social responsibilities and agronomical support to the farmers. BAT works with about more than 250,000 of farmers across the world and most of them are directly contracted to supply two-thirds of leaf. They purchase...
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