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SWOT Analysis of British American Tobacco Bangladesh Strength

British American Tobacco Bangladesh is a famous cigarette brand in Bangladesh with strong brand recognition and financial position that creates high barriers to entry for competitors. However, the company faces weaknesses in that cigarettes are an unhealthy product with restrictions on advertising, and decisions are made centrally in Hong Kong rather than locally. Opportunities exist in the large size of the tobacco market in Bangladesh and oligopolistic structure. Threats include potential loss of demand to e-cigarettes and health campaigns, as well as potential increased government regulation due to environmental issues.

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Shuvo Datta
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288 views1 page

SWOT Analysis of British American Tobacco Bangladesh Strength

British American Tobacco Bangladesh is a famous cigarette brand in Bangladesh with strong brand recognition and financial position that creates high barriers to entry for competitors. However, the company faces weaknesses in that cigarettes are an unhealthy product with restrictions on advertising, and decisions are made centrally in Hong Kong rather than locally. Opportunities exist in the large size of the tobacco market in Bangladesh and oligopolistic structure. Threats include potential loss of demand to e-cigarettes and health campaigns, as well as potential increased government regulation due to environmental issues.

Uploaded by

Shuvo Datta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SWOT Analysis of British American Tobacco Bangladesh

Strength
* British American Tobacco Bangladesh is one of the most famous brands in Bangladesh.

* Customers already know about the therefore they don’t have to promote for capturing demand.

* Cigarettes have inelastic PED therefore inflation will not affect the demand for their goods.

* They have a strong financial position therefore any sudden loss can be taken care of.

* Their large investment and strength, creates a high entry barrier in the market. Therefore, they have
less competitor.

Weakness
* The company is dealing with demerit good, damaging environments, creating health issues, and other
health hazards.

* They cannot advertise their product on TV.

* All the decisions are taking from Hong Kong therefore, centralize decision making.

Opportunities
* The tobacco industry in Bangladesh is very strong therefore, the company will not face trouble to
sustain in the market.

* Almost half of the tobacco product is for cigarettes.

* The cigarette industry in Bangladesh is an oligopoly. Therefore, BATB is earning a large amount of
profit.

* Lack of competition allows them to run their business smoothly and continues to grow.

Threat
* The new E-cigarettes may capture their demand and decrease the demand for cigarettes.

* Number of ENGEOs are trying to increase the health awareness within the consumer and they may
start to decrease showing demand for the product.

* The government is taking action against environmental issues. Therefore, high negative
externality caused by the company may bring high regulations and actions from the government.

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