Advantages and Disadvantages of Growth Strategies Used by Global Tobacco Companies on Foreign Developed Markets: the Case of British American Tobacco and Philip Morris International in USA and Japan

Tobacco industry is one of the most controversial industries. At present time, it poses a special interest since it is going through the transformation of consumer preferences from traditional cigarettes to innovative next generation products. Tobacco companies have to adapt to these altering conditions through improved growth strategies. The goal of the master thesis is to identify advantages and disadvantages of growth strategies that global tobacco companies use on foreign developed markets. To reach the goal, we have considered different approaches to growth strategies in the first chapter. Besides this, we have made the overview of growth strategies of global tobacco companies on developed markets and summarized the advantages and disadvantages of these strategies. In the second chapter, we have analyzed tobacco market trends on the world’s and developed countries’ markets. Additionally, we have regarded the cases of British American Tobacco and Philip Morris International in USA and Japan. Finally, we have derived the advantages and disadvantages of growth strategies deployed by global tobacco companies on foreign developed markets, provided several recommendations for global tobacco companies and identified a number of limitations of the research.