PM PESTEL
PESTEL
Political & legal factors:
Tobacco products are the most taxed goods in the world. Their taxes often exceed half of the retail price generating huge overcome for governments.
Philip Morris sells its products in over 160 countries, operates in approximately 90 markets including Argentina, Algeria, Australia, Austria, Belgium, Canada, Colombia, the Czech Republic, Finland, France, Germany, Greece, Hungary, Indonesia, Italy, Japan, Kazakhstan, Mexico, the Netherlands, the Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Serbia, Singapore, Spain, Sweden, Switzerland, Turkey, and Ukraine. It has 58 manufacturing facilities in 32 countries & the company operates in European Union, Middle East & Africa, Asia and Latin America.
Most of these countries are economically stable & have well developed business environment, but the main political factor that affects PM Price of cigarettes are the taxes(excise tax, customs duties & value added tax,VAT). The composition of Price cigarettes per pack is determined by a state laws of taxation, affecting the cigarette pack Price.
Economic Forces
Philip Morris is considered a company with stable demand products. Tobacco products do not have a real substitute and are addictive products. That’s why when the Price of this products moves, the demand will remain a bit the same. This happens because of its addictive nature, the demand for tobacco is stable regardless of its price. In other hand, another economic factor that affect this company are the exchange rates. PM has a wide variety of exchange rates due to its huge exporting in a lot of countries.
Social Forces
This factor is the most dangerous for PM, considering smoking harms and affects health. PM developes social awareness campaigns against harm of tobacco, but the tobacco industry has started to be viewed as inappropriate & its bombarded with anti-smoking campaigns regulations.
Technological Forces
PM is following current
Political & legal factors:
Tobacco products are the most taxed goods in the world. Their taxes often exceed half of the retail price generating huge overcome for governments.
Philip Morris sells its products in over 160 countries, operates in approximately 90 markets including Argentina, Algeria, Australia, Austria, Belgium, Canada, Colombia, the Czech Republic, Finland, France, Germany, Greece, Hungary, Indonesia, Italy, Japan, Kazakhstan, Mexico, the Netherlands, the Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Serbia, Singapore, Spain, Sweden, Switzerland, Turkey, and Ukraine. It has 58 manufacturing facilities in 32 countries & the company operates in European Union, Middle East & Africa, Asia and Latin America.
Most of these countries are economically stable & have well developed business environment, but the main political factor that affects PM Price of cigarettes are the taxes(excise tax, customs duties & value added tax,VAT). The composition of Price cigarettes per pack is determined by a state laws of taxation, affecting the cigarette pack Price.
Economic Forces
Philip Morris is considered a company with stable demand products. Tobacco products do not have a real substitute and are addictive products. That’s why when the Price of this products moves, the demand will remain a bit the same. This happens because of its addictive nature, the demand for tobacco is stable regardless of its price. In other hand, another economic factor that affect this company are the exchange rates. PM has a wide variety of exchange rates due to its huge exporting in a lot of countries.
Social Forces
This factor is the most dangerous for PM, considering smoking harms and affects health. PM developes social awareness campaigns against harm of tobacco, but the tobacco industry has started to be viewed as inappropriate & its bombarded with anti-smoking campaigns regulations.
Technological Forces
PM is following current