On The Development Strategy Choice Of China’s Tobacco Industry

China’s tobacco industry started at about100years ago. Before the liberation, the Chinese tobacco industry is monopolized by foreign capital, and new foreign products and foreign products produced in China account for around70%of the market share. After the founding of new China, China’s tobacco industry soon returned to production and operation activities by receiving the foreign factory and public-private partnerships. Especially from the implement of national tobacco monopoly system in1982, China’s tobacco industry got a rapid speed of development and expansion. At present, the tobacco industry of China has become an important sector of the economy, the country has nearly50000000people’s jobs and lives are closely related to the tobacco industry. For example, China tobacco production is widely distributed in the22provinces, about500counties, each year more than300thousand farmers, involving more than15000000of rural population. There are about500000workers employed by the cigarette business. The most of about4900000cigarette retailers are individual business. At the same time, the tobacco industry has led the tobacco machinery, cigarette tow, flavor spices, all kinds of cigarette paper and printing auxiliary materials processing and other industries.The price management of China’s tobacco industry had been always in government’s plan in1980s; the government controlled the price of tobacco and tobacco products. Along with market economy idea gradually win support among the people, various governments gradually relaxed the control on tobacco and tobacco products. In the middle and late twentieth century, enterprises gradually have the independent pricing power, because the tobacco market is a seller’s market, coupled with the high profitability of cigarette products, the price action of the enterprise is active with each passing day, but also appeared a few problems, so the State Tobacco Monopoly Bureau strengthened the price management. However, the enterprise structure condition of China’s tobacco industry is still disperse, i.e. too many small businesses, production layout is dispersive, integral competition ability is not strong. Long-term since, our country tobacco brand is also faced with the problem about quantity, small scale, and weak competitiveness. As one of the countries that still practiced tobacco monopoly system in the world, China’s tobacco enterprises M&A and industry departments in charge of planning and management are having extremely close relationship. China’s tobacco industry authorities adopted a series of measures since twenty-first Century according to the situation of cigarette industry enterprise, many, small, and scattered, aimed at promoting the merger and reorganization among tobacco enterprises. Accompanied by the tobacco industry enterprises to integrate, tobacco brand integration gained greater success. From the future development perspective of China’s tobacco industry, the merger and reorganization of tobacco enterprises will continue to advance, and the tobacco market will maintain the basic stability of the state, tobacco enterprises will pay more attention to cigarette brand integration and expansion.The tobacco industry not only has accumulated great wealth for national economy development, but also eased the employment pressure; promoted the related industrial and commercial development, and also created a large number of foreign exchange earnings for the state. China’s tobacco industry has advantages about ecological resources, market resources, material and social resources, but also has problems about quality, size, concentration, competition, and talent team construction. After joining the WTO, China’s tobacco industry is also facing favorable development opportunities and severe challenges. At the same time, the local government relies on the tax from tobacco industry, market production and planned quota allocation system is not harmonious, the rigidity of purchasing price of tobacco leaf and tobacco market, obvious regional characteristics and brand building of the lag and so on, are the important restriction factors of current China’s tobacco industry. At the same time, although our country tobacco production and sales volume can account for1/3of the world, in any case is a tobacco country, but still not be powerful nation of tobacco. Compared with the developed countries, brand building and marketing strategy is still a big gap.According to our analysis, we think, the core development strategy of China’s tobacco industry should mainly include competitive strategy, brand strategy, diversification strategy, as well as standardization strategy. The strategies to promote the healthy and stable development of tobacco industry are mainly in the following aspects:the first is to push the tax reform of tobacco industry; the second is to strengthen the tobacco industry marketing network construction; the third is to improve the tobacco industry specialization level of social services, including tobacco production and tobacco enterprises; the fourth is the establishment of a unified national tobacco resource market; the fifth is the reorganization and merger of tobacco enterprise; the sixth is the establishment of high-quality tobacco technology promotion team and new farmer troop; the seventh is to accelerate the pace of entering into the international tobacco market; the eighth is the implementation of the whole process of management based on information; the ninth is to build a harmonious tobacco, pay attention to culture construction, carrying out humanism management, the realization of harmonious development.The full text is divided into five parts:the first part is the analysis of the current development of the tobacco industry, including the history and the prospect of the development of the tobacco industry, and role in the national economy; the second part is the tobacco industry development’s SWOT analysis, and summarizes the major problems and constraints; the third part is the international competitive analysis of China’s tobacco industry, including the current situation of the global tobacco industry, the policy and regulation of the global tobacco industry, as well as the competitive analysis, at last the world position of China’s tobacco industry were evaluated; the fourth part is the research on the core development strategy of China’s tobacco industry, mainly research on the competition strategy, brand strategy, diversification and standardization strategic; the fifth part is the main countermeasure proposal, including the tax system reform about China’s tobacco industry, the sales network construction, social services, the unified market tobacco resources, corporate restructuring and mergers, the promotion of tobacco leaf technology, the whole process management, and the construction of the harmonious tobacco etc.