SWOT Analysis of British American Tobacco Bangladesh

Strength
* British American Tobacco Bangladesh is one of the most famous brands in Bangladesh.

* Customers already know about the therefore they don’t have to promote for capturing demand.

* Cigarettes have inelastic PED therefore inflation will not affect the demand for their goods.

* They have a strong financial position therefore any sudden loss can be taken care of.

* Their large investment and strength, creates a high entry barrier in the market. Therefore, they have
less competitor.

Weakness
* The company is dealing with demerit good, damaging environments, creating health issues, and other
health hazards.

* They cannot advertise their product on TV.

* All the decisions are taking from Hong Kong therefore, centralize decision making.

Opportunities
* The tobacco industry in Bangladesh is very strong therefore, the company will not face trouble to
sustain in the market.

* Almost half of the tobacco product is for cigarettes.

* The cigarette industry in Bangladesh is an oligopoly. Therefore, BATB is earning a large amount of
profit.

* Lack of competition allows them to run their business smoothly and continues to grow.

Threat
* The new E-cigarettes may capture their demand and decrease the demand for cigarettes.

* Number of ENGEOs are trying to increase the health awareness within the consumer and they may
start to decrease showing demand for the product.

* The government is taking action against environmental issues. Therefore, high negative
externality caused by the company may bring high regulations and actions from the government.