In order to address this problem, the CEO of the tobacco and cigarette company must device a strategy to locate new markets for their products while at the same time ensuring that they get the most profit out of their traditional one. In this case, the CEO could consider expanding their market abroad through exporting their final products to countries in Asia, where a large percentage of the population already smoke. In doing so, the company could utilize their current, and even old, marketing and advertising strategies to promote their product, allowing the company to save money from developing a new advertising campaign in their prospective markets.
In addition, because a large percentage of the population in this region already smoke, this strategy decreases, to a certain extent, the ethical burden that the company will face in turning non-smokers into smokers. However, it is imperative for the company to focus their marketing campaign into attracting current smokers to switch brands and not in converting non-smokers.
The aforementioned strategy can also be stretched further by setting up a manufacturing plant in developing countries in Asia. By doing so, the company will not only bring much needed employment in the region, but it will also save the company expenses in manufacturing due to lower labor costs. Furthermore, the abundance of raw materials in the region will also provide the company with further benefits in terms of keeping costs at bay.
By implementing such strategy, the company should be able to satisfy both its shareholders' demand for profits, brought about by reduced costs and increased markets, while at the same time satisfying stakeholders in the community because of responsible advertising and management.
Another important step that the company must take in its traditional market at home to improve performance is to repackage its products and update its look to appeal to the changing tastes and preferences of its consumers.
However, in order to truly ensure the company's success in the long run, the company must diversify its products by manufacturing either new tobacco-based products to diversify risks or by manufacturing products, which could be consumed together with cigarettes such as cigarette filters, and the like. Manufacturing cigarette filters, for example, will not be too costly for the company because cigarettes already contain filters, hence, not much research and development will be required. In addition, this strategy will not only improve the company's overall value, but it could also improve the performance of the company's tobacco and cigarette products. The company could advertise cigarette filters and place its cigarette products in the advertisement. By doing so, the company will increase the exposure of its cigarette products without explicitly advertising them, while at the same time advertising new products.
In addition, the company will also be able to improve its overall image for its stakeholders in the community because they will be indirectly helping smokers to minimize the damages caused by smoking through their cigarette filters product line.
However, it is imperative that the company remains