Working in an environment which is full of changes always requires the management of the companies to foresee the future. Only those companies which can foresee the future are able to sustain and the others perish. Then there are few others who lobby for the government to create supportive environment. Counter-intuitive to competition, tobacco industry is an industry that has always been fighting with the government rather than among themselves. It is an industry where the political decisions impact tremendously the profitability and the day-to-day workings of the companies. The present situation shows that the bidi industry is way ahead of the cigarette industry and the trend doesn't seem to be changing in the coming future. The problem which is discussed in this paper is the potential entry of the cigarette companies into the bidi industry. Though no such attempts have been found in the present situation, this project involves considering the viability of such a move and its benefits and pitfalls. The research has been done using the Event Analysis Method. It involves the systematic identification of news reports on events that bear on the area of research. The research has been done using the secondary resources. However, to improve the quality of the report some data has been used from the primary resources. Based on this research, it is ascertained that there lies an opportunity for cigarette companies to explore a huge untapped market, though it involves some challenges outlined therein.
In
the present context, companies try to diversify into other
businesses in order to reduce the risk and also to explore
the new and emerging business prospects. Tobacco industry
is an industry which has always been assumed to be risky
due to continuous monitoring and intervention by the government;
as a result, which we see tobacco companies diversifying
into other businesses. However, in the Indian scenario,
though companies are diversifying, there is a huge potential
for the tobacco market itself, which is explored in the
form of bidi industry by unorganized players. The
prospect of diversifying into the bidi industry provides
an opportunity to explore the big market and increase its
bottom line but at the same time brings with itself challenges
from the existing players and politicians. |
