Chinese Cigarettes Industrial Enterprises Diversified Business Strategy

Since late 1990s ,with the increasing saturation and competition and decreasing production and sale of Chinese tobacco market , diversification becomes the necessary way for the development of Chinese tobacco factories. Especially because of the process of economy globlization , Chinese tobacco factories face the challenge from foreign tobacco companies not only in tobacco production but also comprehensive power including other industries. Therefore it is stratigic and realistic to grasp the current situation of the world and Chinese tobacco markets, to adjust strategy according to actual situation, to research diversification management law of tobacco factories , to improve economic operation quality and competition power. According to the current developing situation of international tobacco industry , this article points out that the whole strength of Chinese tobacco factories in diversification management is not so strong and has not reach certain scale and definities the challenge and opportunity they are facing . And also by analyzing the demand and enviorenment of diversification and comparing world tobacco factories , this article studies target markets selection competition tactics , mode choice and risk control and presents stratigic thinking for the diversification management of Chinese tobacco factories. Taking Yunnan Hongta Group , Shanghai Tobacco Group and America Philip Morrince Co. for examples and analyzing their real cases , this article , from the point of implementation notes that Chinese tobacco factories should strengthern themselves in total strategy study , personnel training and methods researching how to deal with the challenge from WTO, as well as some requests for these factories in order to promote further development in diversification management of Chinese Tobacco factories.