2.

16 SWOT ANALYSIS OF TOBACCO INDUSTRY

STRENGTHS:

India is one of the largest manufacturers in terms of tobacco production It is one the traditional

items in India foreign trade, and is helping India to earn lots of foreign exchange. India is leading

tobacco exporter of the world.

Other strengths:

Distribution network well in place.

Variety of Brands.

Most companies are financially sound.

Addictive in nature.

WEAKNESS:
Taxation policies are the main weakness of the tobacco industry as government always increases

tax burden on this industry to bring it out of the reach of rural people. Now tobacco ads have

been prohibited. Government has banned advertisement of tobacco products on any type of

media.

Other weakness:

Hazardous Product.

Causes various forms of cancer.

Social Taboo.

OPPORTUNITIES:

Well the biggest opportunity for the tobacco industry can be to get hold of the foreign market by

reducing its subsidies and applying that money in the foreign market.

Other opportunities:

International market.

Market penetration.
 Women’s market.

Cigrattes to bidi making which is bigger.

THREATS:

NGOs are the biggest threats to the tobacco industry as they are always ready with a new

campaign to prohibit tobacco usage and all things. Another threat is smuggled tobacco products

or cigarettes which is somewhere harming Indian market as smuggled cigarette does not have

excise duty on it and its supply is cheaper.

Other threats:

Declining market.

Heavy taxes and duties.

Growing anti-smoking movement.

Increasing rate of smuggling of imported cigrattes.

Entry of global brands.

New government restrictions.

World Health Organisation.