British American Tobacco Malaysia - Competitors

British American Tobacco Malaysia Competition

Now Viewing British American Tobacco Malaysia's competition in: Tobacco Manufacture (primary)

Recent Developments

Tobacco Companies have Mixed Reactions to Legislation - FDA authority to regulate tobacco as a drug has been sought by anti-smoking groups for years, and the issue has surfaced again in a bill passed by the House Committee on Energy and Commerce Committee. Philip Morris supports the latest legislation, but it's opposed by Reynolds American and members of Congress from tobacco-producing states. Whether the bill has enough support in the full Congress is unclear, as is whether the President would sign it into law.

Concern About Children's Health Prompts Regulation - A new wave of smoking regulation is gathering steam in the US and Canada: smoking in cars with children. Arkansas, California, Louisiana, and Maine have legislation prohibiting smoking with children in the car; Nova Scotia has a similar ban. Proponents of the bans say that smoke harms children more when they're in confined settings.

Smoking Bans Adopted for Real Estate Properties - Despite opposition, some private real estate companies in New York City are banning tenant and owner smoking in their properties. The bans currently exist for some condos and many apartments. The move is part of a larger series of smoking bans enacted by New York City's mayor since 2003.

Competitive Landscape

Demand is driven by discretionary consumer spending and awareness of the health effects of smoking. The profitability of individual companies depends on effective marketing. Large companies have advantages in economies of scale in manufacturing and product loyalty. Small companies can compete effectively through heavy discounting, clever branding and packaging, and by exploiting niche categories such as pipe tobacco and additive-free cigarettes. The industry is highly capital-intensive: average annual revenue per worker for a typical company is $1.5 million.

Full Industry Overview For Tobacco Manufacture

Tobacco Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US tobacco products manufacturing is forecast to grow at an annual compounded rate of 1.7 percent between 2007 and 2012.

Tobacco Manufacturing Growth Weakens

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.