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PEST Analysis - Tobacco Sector in China

Published by: Synergyst

Published: Jul. 1, 2007 - 15 Pages


Table of Contents


TOBACCO SECTOR IN CHINA

Overview of the Chinese Tobacco Industry

Competition and Market Structure

Future Outlook


PEST ANALYSIS

Political Factors

Restructuring of Tobacco Industry

Provisions of Tobacco Monopoly Law

Special Retail License of Tobacco Monopoly Abolished

Entry into World Trade Organization (WTO)

Competition to the State Monopoly

Economic Factors

Chinese Economy and Tobacco Industry

Cigarette Consumption and Taxation

Employment Opportunities

Social Factors

Growing Healthcare Costs due to Smoking

Smoking among Women and Students

Changing Lifestyles

Strict Vigil on Production or Distribution of Fake Cigarettes

Technological Factors

Expected Growth in E-cigarettes

Other Technological Developments


LIST OF FIGURES

Figure 1: China’s Tobacco Industry - Cigarette Production and Sales (2003-2006)

Figure 2: Government Revenues from Tobacco Industry (2003-2006)

Abstract

PEST analysis of any industry sector investigates the important factors that are affecting the industry and influencing the companies operating in that sector. PEST is an acronym for political, economic, social and technological analysis. Political factors include government policies relating to the industry, tax policies, laws and regulations, trade restrictions and tariffs etc. The economic factors relate to changes in the wider economy such as economic growth, interest rates, exchange rates and inflation rate, etc. Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, changes in tastes and buying patterns, etc. The technological factors relate to the application of new inventions and ideas such as R&D activity, automation, technology incentives and the rate of technological change.

Synergyst’s PEST Analysis is a perfect tool for managers and policy makers; helping them in analyzing the forces that are driving their industry and how these factors will influence their businesses and the whole industry in general. Our product also presents a brief profile of the industry comprising of current market, competition in it and future prospects of that sector.

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