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Altria Corporation Altria Corporation is one of the worlds largest tobacco corporations, the parent company of Philip Morris International, Kraft Food, Philip Morris Capital Corporation, and Philip Morris USA. It was founded in New York in 1919. The companys headquarters are based in New York, U. S. A. Through its subsidiaries Altria Corporation is engaged in the manufacture and sales of tobacco products both in the U.
S. and international markets. The products are sold to the wholesalers, large retail companies with chain stores, to the armed forces, and mid- and small-scale companies, including state-owned enterprises, distributors, wholesalers, and retailers. Altria Corporation is one of the top cigarettes companies by market capitalization (163. 37 B).
The company adheres to the Conglomerate Diversification Growth Strategy in its worldwide operations. It operates in consumer goods sector in cigarettes industry. The companys internal strengths are its competitive assets, value-chain, resources, competencies, innovative products, quality procedures and processes, added value to its products, marketing expertise, and functional operations. Altria Corporations internal weaknesses are the lawsuits, competitive liabilities, somewhat lower profile in international market, health related issues, cost and tax increases, and social challenges along with the overall decline in tobacco industry.
As Altria Corporation is one of the worlds largest companies, it major threat is competition, as new competitors may start operating both in global and domestic market. Apart from that, threats may include price wars with its competitors, possible taxation on tobacco products while operating internationally, the superior access of the company's competitors to distribution channels, as well as threat of innovative tobacco products. The company's opportunities include the opportunity to enter new, developing markets, enhancing its operations in such global markets like internet, and possibility of joint ventures, mergers, acquisitions, and strategic alliances. The major competitors of Altria Corporation are British American Tobacco plc, Reynolds American Inc. , Carolina Group, Vector Group Ltd. , and Star Scientific Inc.
Altria Corporation has the competitive advantage and competitive strategy in its operations. The company undertakes all efforts to achieve steady growth as well as long-term value creation in its worldwide and domestic operational activities by creating competitive advantages through its consistent new product innovation. The companys strategy includes expanding international operations, placing emphasis on strategic alliances, mergers, acquisitions, and strategic investments in order to retain its position as the world's largest tobacco company. Altria Corporation's strategy is aimed to consistently develop existing and creating new innovative products, resources and capabilities, and to develop a strong product portfolio in order to effectively response to the rapidly changing business conditions. The company's distinctive capabilities are strong brands, exclusive licenses on tobacco products, patents, efficient teamwork, leadership, management, marketing, and advertising strategies allowing the company to get competitive advantage. Altria's product value chain comprises of the number of activities that play a great role in the companys intention to bring its tobacco products from its conception, via developing product, design, sourcing of raw materials required to manufacture the product, intermediate inputs (i.
e. machinery supply, warehouses, marketing operations, sales, and distribution process) through the use by the end consumer. Lets examine Altria Corporations product value chain through one of its tobacco products, Marlboro that war originally introduced as a womans cigarette under the slogan Mid As May. So, the first component of Marlboro's value chain is the design and validation stage. Marlboro is created and specified in accordance with the product and supply policies, as well as the requirements of the market where it is planned to be distributed. The design stage also involves development in accordance with the relevant regulatory and legislative practices.
The next component of the value chain is leaf buying and processing stage. The company purchases raw material (tobacco) and delivers it to the factories. Then, the cured and blended tobacco is processed and rolled into cigarettes. After the final inspection of the tobacco leaves, the product is exposed to the final quality control to ensure Marlboro cigarettes are processed in compliance with the requirements of the processing specification.
The next stage includes assembling of the processed tobacco with cigarette filters into the final products. Then the company makes subsequent packaging, and labeling in compliance with the specifications for the local and international markets (Altria Corporation, 2007). Finally, the finished product is then ready for shipping to the markets. The next component of the chain includes storage and distribution, where Marlboro cigarettes are stored accordingly to ensure the tobacco products reach business-to-business customers in perfect condition.
The next component includes sales, marketing, and brand management, as far as Marlboro cigarettes' portfolio should be managed accordingly in order to meet the requirements of the markets (whether the cigarettes are sold internationally or locally), maintain Marlboro brand values, and fit the legislation (local or international), as well as other standards, in case required. Finally, the last component of the Marlboro value chain is consumer use, where Marlboro cigarettes that reach the final customer should meet the customers requirements and preferences for quality cigarettes. Finally, As Altria Corporation is consistently looking for better growth and improving its revenues, the company explores strategic alternatives to enhance shareholder value, and to deliver superior returns to its shareholders over the long term by continuing to enhance each of its operating companies. References Altria Corporation. (2007). Retrieved December 1, 2007, from web
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Research essay sample on One Of The Worlds Marlboro Cigarettes
