Japan Tobacco International is one of the leading companies that manufacture and sells tobacco products, operating their business worldwide. It was established in 1999 by its parent company Japan Tobacco Inc., and now they run business in 73 countries. In Europe, JTI occupies fourth place with 16.6% market share in value with the first place being occupied by Philip Morris International.
This report focus on answering the main question: How can Japan Tobacco Industry (JTI) maintain their strong position in the European Union with the increasing number of regulations and limitations in this sector of industry?
In order to answer to this question, I started by presenting the external data and analyzing which have the most influence for the tobacco industry. Governments adopt legislations and directives that affect the tobacco industry and it is JTI’s responsibility to overcome this difficulties. The Economy of a country or a region is represented best trough indicators such as GDP, Inflation or Unemployment rate. These indicators are analyzed in the report and show us if EU is facing economic difficulties that can affect also JTI business. In terms of Environment and Social factors, they are also analyzed in the body of this report and they clarify how European Union Region is doing toward these issues.
The Legal factor is the main influence and it is also the subject of this paper. When talking about legal aspect there are three ways this report looked at tobacco product restriction. The first aspect covers the core regulations that are implemented to a high degree in many markets and can be advertising and sponsorship bans, health warning legislation or Tax excise increases. The second aspect of legislations are the standard legislations and includes public smoking bans, POS display bans, graphic display bans, minimum smoking age, illicit trade and other legislations. The report has in discussion gives examples of countries where such...