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Swot Philips
Philip Morris
International SWOT
Analysis / Matrix
Essays, Term Papers & Research Papers
SWOT analysis is a vital strategic planning tool that can be used by Philip Morris International
managers to do a situational analysis of the firm . It is a handy technique to analyze the present
Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Philip Morris International is facing in its
current business environment.
The Philip Morris International is one of the leading organizatations in its industry. Philip Morris
International maintains its prominent position in market by carefully analyzing and reviewing the
SWOT analysis. SWOT analysis an immensenly interactive process and requires effective
coordination among various departments within the organization such as – marketing, finance,
operations, management information systems and strategic planning.
The SWOT Analysis framework helps an organization to identify the internal strategic factors such as -
strengths and weaknesses, & external strategic factors such as - opportunities and threats. It leads to
a 2X2 matrix – also called SWOT Matrix.
The primary purpose of SWOT matrix is to identify the strategies that a firm can use to exploit external
opportunities, counter threats, and build on & protect Philip Morris International strengths, and
eradicate its weaknesses.
Strong distribution network – Over the years Philip Morris International has built a reliable distribution
network that can reach majority of its potential market.
Highly skilled workforce through successful training and learning programs. Philip Morris International is
investing huge resources in training and development of its employees resulting in a workforce that is
not only highly skilled but also motivated to achieve more.
Good Returns on Capital Expenditure – Philip Morris International is relatively successful at execution of
new projects and generated good returns on capital expenditure by building new revenue streams.
Strong Brand Portfolio – Over the years Philip Morris International has invested in building a strong
brand portfolio. The SWOT analysis of Philip Morris International just underlines this fact. This brand
portfolio can be extremely useful if the organization wants to expand into new product categories.
Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to
overcome any supply chain bottlenecks.
Automation of activities brought consistency of quality to Philip Morris International products and has
enabled the company to scale up and scale down based on the demand conditions in the market.
High level of customer satisfaction – the company with its dedicated customer relationship management
department has able to achieve a high level of customer satisfaction among present customers and good
brand equity among the potential customers.
Not very good at product demand forecasting leading to higher rate of missed opportunities
compare to its competitors. One of the reason why the days inventory is high compare to its
competitors is that Philip Morris International is not very good at demand forecasting thus end up
keeping higher inventory both in-house and in channel.
Organization structure is only compatible with present business model thus limiting expansion in
adjacent product segments.
The marketing of the products left a lot to be desired. Even though the product is a success in terms
of sale but its positioning and unique selling proposition is not clearly defined which can lead to the
attacks in this segment from the competitors.
Financial planning is not done properly and efficiently. The current asset ratio and liquid asset ratios
suggest that the company can use the cash more efficiently than what it is doing at present.
High attrition rate in work force – compare to other organizations in the industry Philip Morris
International has a higher attrition rate and have to spend a lot more compare to its competitors on
training and development of its employees.
Need more investment in new technologies. Given the scale of expansion and different geographies
the company is planning to expand into, Philip Morris International needs to put more money in
technology to integrate the processes across the board. Right now the investment in technologies is
not at par with the vision of the company.
There are gaps in the product range sold by the company. This lack of choice can give a new
competitor a foothold in the market.
Opportunities for Philip Morris International – External Strategic
Factors
The new technology provides an opportunity to Philip Morris International to practices differentiated
pricing strategy in the new market. It will enable the firm to maintain its loyal customers with great
service and lure new customers through other value oriented propositions.
New customers from online channel – Over the past few years the company has invested vast sum
of money into the online platform. This investment has opened new sales channel for Philip Morris
International. In the next few years the company can leverage this opportunity by knowing its
customer better and serving their needs using big data analytics.
New trends in the consumer behavior can open up new market for the Philip Morris International . It
provides a great opportunity for the organization to build new revenue streams and diversify into
new product categories too.
Organization’s core competencies can be a success in similar other products field. A comparative
example could be - GE healthcare research helped it in developing better Oil drilling machines.
Lower inflation rate – The low inflation rate bring more stability in the market, enable credit at lower
interest rate to the customers of Philip Morris International.
The market development will lead to dilution of competitor’s advantage and enable Philip Morris
International to increase its competitiveness compare to the other competitors.
Economic uptick and increase in customer spending, after years of recession and slow growth rate
in the industry, is an opportunity for Philip Morris International to capture new customers and
increase its market share.
New environmental policies – The new opportunities will create a level playing field for all the
players in the industry. It represent a great opportunity for Philip Morris International to drive home
its advantage in new technology and gain market share in the new product category.
Threats Philip Morris International Facing - External Strategic Factors
Rising pay level especially movements such as $15 an hour and increasing prices in the China can
lead to serious pressure on profitability of Philip Morris International
Imitation of the counterfeit and low quality product is also a threat to Philip Morris International’s
product especially in the emerging markets and low income markets.
Rising raw material can pose a threat to the Philip Morris International profitability.
New technologies developed by the competitor or market disruptor could be a serious threat to the
industry in medium to long term future.
New environment regulations under Paris agreement (2016) could be a threat to certain existing
product categories .
The company can face lawsuits in various markets given - different laws and continuous fluctuations
regarding product standards in those markets.
As the company is operating in numerous countries it is exposed to currency fluctuations especially
given the volatile political climate in number of markets across the world.
Increasing trend toward isolationism in the American economy can lead to similar reaction from
other government thus negatively impacting the international sales.
Limitations of SWOT Analysis for Philip Morris International
Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its
share of limitations.
Certain capabilities or factors of an organization can be both a strength and weakness at the same
time. This is one of the major limitations of SWOT analysis . For example changing environmental
regulations can be both a threat to company it can also be an opportunity in a sense that it will
enable the company to be on a level playing field or at advantage to competitors if it able to develop
the products faster than the competitors.
SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself.
The matrix is only a starting point for a discussion on how proposed strategies could be
implemented. It provided an evaluation window but not an implementation plan based on strategic
competitiveness of Philip Morris International
SWOT is a static assessment - analysis of status quo with few prospective changes. As circumstances,
capabilities, threats, and strategies change, the dynamics of a competitive environment may not be
revealed in a single matrix.
SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating
strategies. There are interrelationships among the key internal and external factors that SWOT does
not reveal that may be important in devising strategies.
This method is called Weighted SWOT analysis. It is better than doing simplistic SWOT analysis
because with Weighted SWOT Analysis Philip Morris International managers can focus on the most
critical factors and discount the non-important one. It also solves the long list problem where
organizations ends up making a long list but none of the factors deemed too critical.
(Yunk, 2019)
Do you know where your business stands in the marketplace? Are you clear on what
your competitors are doing and how you can effectively position your products or
services so you can stand out and make more sales?
If you aren't sure, then you can benefit from a SWOT analysis to get a thorough
understanding of how your company is measuring up.
Here's how the components of a SWOT analysis apply to sales and marketing:
Strengths: the reasons why customers choose your products or services over
your competitors'. These could be the price point, the benefits of your products,
or your customer service. You should focus on these selling points to distinguish
your offerings.
Weaknesses: aspects in which your products or services pale when compared to
your competition. For example, maybe your competitors are offering a better
price point or a higher quality product. Understanding these weaknesses can
help you prepare for objections while adjusting the sales approach to focus on
your strengths in your sales communications.
Opportunities: areas in which you can make improvements to your products,
provide better services to your customers, expand into new markets, or edge out
some of your competitors. Your opportunities are often informed by your
strengths and weaknesses -- e.g., how you can better leverage your strengths to
attract more customers or improve on the weaknesses to become more
competitive.
Threats: risks in your sales and marketing strategy that could impact your
company's profitability. These risks could be external, such as customers
switching to a different brand because of pricing. Or they could be internal, such
as the inability to deliver the right messaging to your target market, which could
isolate your customer base. After you have identified the threats, you'll be able to
devise solutions to lessen their impacts.
Sample Sales and Marketing SWOT Analysis
Now you may wonder how a SWOT analysis applies to sales and marketing. Here is a
sample created for a local spa business:
Strengths:
The business has many loyal and returning customers who are satisfied with the
services.
Customers recommend the service to their friends and family, generating positive
word-of-mouth.
The store location attracts some walk-in clients.
Relationships with other local businesses are yielding referrals.
Weaknesses:
Opportunities:
Drive more traffic with social media marketing and advertising as the target market is
active on Facebook and Instagram.
Threats:
Other spa businesses are opening in the area so there's more competition.
A competitor is running radio ads and newspaper ads.
The cost of running ads can be high.
After you have listed out all the factors, you can now consider:
How you can leverage your strengths to open up more opportunities.
How you can reposition weakness into a strength.
What you can do to leverage the opportunities.
What you can do to neutralize the threats.
Conclusion
A SWOT analysis helps you understand where your business stands in the market so
you can effectively position your products or services to appeal to the right audience,
gain a larger market share, and increase your profits.
It's also important to provide your sales and marketing department with the right tools so
they can leverage the information and properly execute an effective strategy.
Your sales and marketing teams need the best technology to be as productive as
possible. With 8x8's Virtual Contact Center you get world-class technology and
everything your domestic or international business needs all in one system. Call 1-833-
426-1046 or fill out an online form to request a no-obligation quote from an 8x8 product
specialist.
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from $175 MarketLine October, 2021 MTLN16841792
Pages
Table of Contents
Description
Search Inside Report
Summary
Philip Morris International Inc. - Strategy, SWOT and Corporate Finance Report, is a
source of comprehensive company data and information. The report covers the
company's structure, operation, SWOT analysis, product and service offerings and
corporate actions, providing a 360˚ view of the company.
Key Highlights
Scope
Detailed information on Philip Morris International Inc. required for business and
competitor intelligence needs
A study of the major internal and external factors affecting Philip Morris
International Inc. in the form of a SWOT analysis
An in-depth view of the business model of Philip Morris International Inc.
including a breakdown and examination of key business segments
Intelligence on Philip Morris International Inc.'s mergers and acquisitions
(MandA), strategic partnerships and alliances, capital raising, private equity
transactions, and financial and legal advisors
News about Philip Morris International Inc., such as business expansion,
restructuring, and contract wins
Large number of easy-to-grasp charts and graphs that present important data
and key trends
Reasons to buy
Gain understanding of Philip Morris International Inc. and the factors that
influence its strategies.
Track strategic initiatives of the company and latest corporate news and
actions.
Assess Philip Morris International Inc. as a prospective partner, vendor or
supplier.
Support sales activities by understanding your customers' businesses better.
Stay up to date on Philip Morris International Inc.'s business structure, strategy
and prospects.
Company Description
Philip Morris is an American multinational company, and it manufactures cigarettes and tobacco. The
company is the market leader, and it has its presence in more than 180 countries in the world. Marlboro
is the company’s well-known product worldwide. It was once part of the company Altria, and it fell apart
from Altria in 2008. Tobacco is considered an addictive drug and is also considered one of the causes of
death (WHO, 2008). Therefore, the government has applied litigation and restrictions on the company.
The company is a point of controversy around the world because of health issues. In response to this,
the company has come up with a solution, i.e., smoke-free products. The company was at a rank of 108
in revenue in 2018, according to fortune 500 (Fortune, 2018). The company is a public company listed on
the New York stock exchange, S&P 100, S&P 500, and SIX. The company was founded in 1847, and its
headquarters are in Switzerland.
The company has a worldwide presence except for America. The main products of the company are
cigarettes, cigars, Codentify, fine-cut rolling tobacco, snuff, rolling papers, and tubes. The net income of
the company was $7.91 billion in 2018. The company has around 77,400 employees worldwide. The
company has six multi-billion dollar brands, and this includes Dji Sam Soe, Longbeach, Marlboro, ST
Dupont Paris, and U Mild. The research center of Philip Morris is in Neuchatel, Switzerland. The
company spends a lot of money on research and development. As of 2018, the company spent $4.5
billion on four of its products. Two of these were of tobacco products, while the other two were of
nicotine. The company is spending a lot of money on the research of making this world smoke free by
2035. They are running campaigns to make the world smoke free by 2035.
Opportunities
Threats
1. E-commerce
1. Technological developments by co
2. Technological Developments
2. Suppliers
3. Inflation
3. Political uncertainties
4. Green Government drive
4. Substitute products
5. Tax policy
Company’s SWOT Description
The above table has been discussed in detail below:
Strengths
1. The company has a very extensive distribution network in almost every
state. They have made sure that their customers get the products easily and
timely. They have a very strong distribution network which has a lot of
reach.
2. The system of the company is in such a way that they have a low-cost
structure. The company manufactures its products at a very low price and
sells at a low price too. It is economical for users.
3. The company has strong relationships with dealers; these dealers provide
them with the supplies. These dealers also promote their products.
4. The company has a very strong financial position. The company is making
profits for the past five years. They have capital available in reserve too.
They can use it anytime for their capital expenditures. They have a strong
asset base too. It gives the company better solvency.
5. The company was able to get high returns on its investments. They have
proved it from their performance. They are getting good returns for the past
many years.
6. The company invests a lot in its labor training. This is the reason they have
a large number of trained and skillful employees in the company. They keep
their employees motivated by giving them good returns on their
performances.
7. The research team has made it possible for the company to come up with
new products, and hence this way, the company was able to enter the new
market too.
8. The company has a very strong presence on social media. The company has
millions of followers on Facebook, Instagram, and Twitter. They engage
customers well on these platforms, and they have a low response rate.
9. The company has a very well-designed company website. This brings in a
lot of customers for the company.
10. The company has a very large product portfolio. They have a large number
of unique offerings for the customers, which are not offered by their
competitors. This gives the company a competitive edge.
11. The company has strong partnerships with the dealers, suppliers’ retailers,
and stakeholders.
Weaknesses
1. The company is investing a lot of money in R&D, but there are many
players in the industry who are spending even more than Philip Morris on
R&D. This gives other companies an advantage over Philip Morris
international. So, the company needs to work more on its R&D. It has been
reported that the company has not done the research for the past two years.
The company is using previous data. This has led to many wrong decisions,
too, as the tastes and choices of the customers are ever-evolving.
2. The time between the purchase of the product to the selling of the product
is high. This adds up to the extra cost of the company.
3. The company pays a lot of rents on a monthly basis. As most of the property
on which they do business are rented, not purchased
4. The current ratio of the company is low as compared to the industry
average. This means that the company will face problems in the future
while liquidating its products.
5. There is a lack of financial planning in the company. This is why the
company has faced many problems regarding financials.
6. Philip Morris’s current structure and culture have led to the failure of many
mergers and integrations. The company has to work on its culture and
structure in order to have successful integrations.
7. The company has very little diversified staff. It makes it difficult for
employees with various backgrounds to adjust to that environment, which
leads to losing talents.
8. There is a very high turnover rate in the company because this company
bears extra costs for the training and development of the employees.
9. The company spends less amount on its quality control department. This
has led to more damage and inconsistency in their products.
Opportunities
1. There has been a shift from traditional shopping to online shopping. The
buyer prefers to buy online now. The company can make a lot of profits by
setting up online stores.
2. The company can use technologies to further reduce their costs and make
more profits. The company can make more profits by making good
decisions based on data extracted used by new technologies.
3. The inflation is expected to be low for the next two years. It is a very good
chance for the company to make good profits as the cost of manufacturing
will be low.
4. The green government drive will help the company to sell its products to
the government’s contractors and workers.
5. The tax policy is in favor of the company as the company will give away a
lesser amount as tax. There will be fewer costs for the company.
Threats
1. The competitors always pose a threat to any company. The same goes for
Philip Morris International. There are many existing and new players in the
market that pose a threat to the company. Their technological
advancements more than Philip Morris are a big threat.
2. The bargaining power of suppliers has increased over the years as the
number of suppliers has decreased over the years. So, the suppliers can ask
for more money.
3. Political instability in any country can happen at any time. This poses a big
threat to companies.
4. There are many substitute products available in the market like Sheesha,
cigar, this all is a threat to the company.
Bibliography
Comparably. (2018). Philip Morris International Mission, Vision & Values.
Fortune. (2018). WHO Report on the Global Tobacco Epidemic, 2008: the MPOWER package.
WHO. (2008). WHO Report on the Global Tobacco Epidemic, 2008: the MPOWER package.
Yearbook, G. G. (2018). Partnerships for the Goals.
Be a part of a progressive change!
At PMI, we’ve chosen to do something incredible. We’re totally transforming our business and building
our future on one clear purpose – to deliver a smoke-free future.
With huge change, comes huge opportunity. So, wherever you join us, you’ll enjoy the freedom to
dream up and deliver better, brighter solutions and the space to move your career forward in endlessly
different directions.
The total transformation we’re going through means that there are unique IT projects here to match all
levels of skills and ambitions – from pace-setting global pilot projects to vital local updates. Whether you
want to pursue a personal passion or build an international career, there’s space here to develop in any
number of directions.
To join us in IT you’ll need to be driven and equally happy whether you’re taking the strategic view or
diving deep into processes. We'll make sure you're set up to succeed whatever your project is, our
culture is agile and collaborative, and we genuinely believe our people are some of the best you’ll ever
work with.
You can be part of a truly dynamic worldwide team dedicated to a bold new vision. Working as part of
the PMI IT Commercial(B2B) team, you will be responsible for the architecture and design of the digital
platform that will drive our growth of Reduced Risk Products (RRP).
The PMI Consumer IT team is responsible for digital transformation of our line of business. The team
spans across design, architecture, execution methodologies (like agile), data and quality assurance.
The team is based across our Digital locations in Lausanne, Krakow and London, working with best in
class system integrators and strategic technical partners.
Using cutting edge cloud-based technologies we are building a global multi-channel platform that will
help us drive RRP across all our global markets. We are passionate about the latest technologies, and
constantly evolving our capability and learning and applying to real world business needs.
As a Solution Architect for CC B2C (Business To Consumer) , you will design & validate solutions for our
CC B2C customers’ digital experience through ground-breaking solutions and platforms including AWS,
Salesforce, Gigya/SAP but not limited to. You will contribute to the solution design, configuration and
engage with business partners. As solution architect, you will ensure the platform design will fit non-
functional requirements at scale (global usage) balancing operational complexity and any other relevant
dimension such as security, cost, speed and scalability.
• Provide technical expertise for B2C CC to the software design, development and integration for the
applications in our portfolio;
• Identify scenarios where we can re-use re-purpose existing solutions to new use cases;
• Provide support to the business teams on new application development pursuits, assisting with
architecture assessments and technical solution design
• Plan, scope, drive or implement proof of concept to validate and prove new technology
• Create best practices for solution implementation including security, integration, naming taxonomies;
• Constantly learn and maintain current knowledge of IT development methodology, architecture and
related standards
• Manage and run end-to-end RFI & RFP process including but not limited to documenting
requirements, contractual negotiations, technical evaluations etc.
• 3 years’ experience in designing, executing, and supporting CRM implementations including but not
limited to customization, integration, development and execution of data migration;
• Strong working knowledge of Cloud Computing concepts, experience with AWS, Salesforce (Salesforce
Marketing Cloud, Gigya, Saleforce.com), Gigya, Treasure Data would be a plus;
• Comfortable with the use of Quality Attributes (Performance, Security, Availability, Usability,
Consistency, Modifiability, Portability, Reusability, Inerrability, Testability, Observability, CI/CD);
• Security and Compliance basics (controls, SOX, GDPR, GxP, audits, passive/active security)
• Knowledge of project execution and Software Development Life Cycle (Agile, Scrum)
What we offer:
Our success depends on our hardworking employees who come to work here every single day with a
sense of purpose and an appetite for progress. Join PMI and you too can:
• Seize the freedom to define your future and ours. We’ll empower you to take risks, experiment and
explore.
• Be part of an inclusive, diverse culture, where everyone’s contribution is respected; collaborate with
some of the world’s best people and feel like you belong.
• Pursue your ambitions and develop your skills with a global business – our staggering size and scale
provides endless opportunities to progress.
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Blue Yonder, a world leader in digital supply chain and
omni-channel commerce fulfillment, announced that Philip Morris International Inc. (PMI), a leading
international tobacco company, has selected its SaaS- and cloud-based transportation management
solution (TMS) to complete its end-to-end supply chain strategy.
“We are looking forward to supporting PMI as it further commercializes its smoke-free products
category,” said Johan Reventberg, president, EMEA, at Blue Yonder. “With the requirement for new
supply chain channels, the solution will not only help PMI improve its agility in adapting to changing
requirements but also help PMI to strengthen its resilience—to changing conditions.”
By transitioning to Blue Yonder’s TMS and utilizing the power of Microsoft Azure, PMI will be able to
transform its transportation operations by managing quickly and efficiently end-to-end business
processes from modeling to planning and execution across multiple modes of road, ocean and last-
mile delivery transport systems. This will ultimately enable PMI to communicate effectively and in
real-time to its carrier community on the delivery status of its products. Blue Yonder unlocks visibility
into inbound and outbound transportation operations along with supplier and carrier collaboration
tools, delivering a comprehensive overview of opportunities available across PMI’s supply chain
network.
Blue Yonder’s TMS solution represents a step towards an open digital platform, enabling a
consumer-centric operating model for PMI. Blue Yonder’s product will simplify the existing transport
management portfolio and—thanks to state-of-the-art technologies— seamlessly integrate into PMI’s
existing IT ecosystem.
“Transportation is a strategic process and we wanted to ensure better visibility and control of product
stocks to help us serve our retail customers and meet the growing needs of our smoke-free product
category,“ said David Cutter, vice president, Global Supply Chain at PMI. “Blue Yonder’s TMS had
all the right elements and is proven in the marketplace. We are confident that they will be an
instrumental partner for us as we continue to grow this category.”
Additional Resources:
Blue Yonder is the world leader in digital supply chain and omni-channel commerce fulfillment. Our
intelligent, end-to-end platform enables retailers, manufacturers and logistics providers to
seamlessly predict, pivot and fulfill customer demand. With Blue Yonder, you can make more
automated, profitable business decisions that deliver greater growth and re-imagined customer
experiences. Blue Yonder - Fulfill your PotentialTM blueyonder.com
“Blue Yonder” is a trademark or registered trademark of Blue Yonder Group, Inc. Any trade, product
or service name referenced in this document using the name “Blue Yonder” is a trademark and/or
property of Blue Yonder Group, Inc. All other company and product names may be trademarks,
registered trademarks or service marks of the companies with which they are associated.
Philip Morris International (PMI) is leading a transformation in the tobacco industry to create a
smoke-free future and ultimately replace cigarettes with smoke-free products to the benefit of adults
who would otherwise continue to smoke, society, the company and its shareholders. PMI is a
leading international tobacco company engaged in the manufacture and sale of cigarettes, as well as
smoke-free products, associated electronic devices and accessories, and other nicotine-containing
products in markets outside the U.S. In addition, PMI ships versions of its IQOS Platform 1 device
and consumables to Altria Group, Inc. for sale under license in the U.S., where these products have
received marketing authorizations from the U.S. Food and Drug Administration (FDA) under the
premarket tobacco product application (PMTA) pathway; the FDA has also authorized the marketing
of a version of IQOS and its consumables as a Modified Risk Tobacco Product (MRTP), finding that
an exposure modification order for these products is appropriate to promote the public health. PMI is
building a future on a new category of smoke-free products that, while not risk-free, are a much
better choice than continuing to smoke. Through multidisciplinary capabilities in product
development, state-of-the-art facilities and scientific substantiation, PMI aims to ensure that its
smoke-free products meet adult consumer preferences and rigorous regulatory requirements. PMI's
smoke-free product portfolio includes heat-not-burn and nicotine-containing vapor products. As of
December 31, 2020, IQOS is available for sale in 64 markets in key cities or nationwide, and PMI
estimates that approximately 12.7 million adults around the world have already switched to IQOS
and stopped smoking. For more information, please visit www.pmi.com and www.pmiscience.com.
Contacts
Blue Yonder Public Relations Contacts:
Jolene Peixoto, Vice President, Corporate Communications
Tel: +1 978-475-0524, jolene.peixoto@blueyonder.com
“Our priority will be to treat all our employees fairly and with
respect and dignity. We appreciate the contributions that each
and every colleague has made over the years and we
understand that this is difficult news for our employees.”
“Philip Morris has a big vision, to create a smoke-free world,
and we are transforming our business to achieve that vision.
Change at this scale is never easy. Our strong global
combustibles business has enabled us to develop better
alternatives for smokers but the increase in illicit trade in
Pakistan, together with the global industry volume trend, has
impacted legal sales volumes in Pakistan to such an extent that
our current manufacturing footprint has become unsustainable.”