A Strategic Study On Diversification Strategy Of The Tobacco Industry

Each tobacco group in the world had a rapid development from the 1960s to the 1990s.The stage had played a positive role in asset value preservation and the development of the tobacco industry.1990s later, the major multinational tobacco companies that based on the different judgments and the development strategy, returned to the main tobacco industry, such as Britain and USA. But Japan still adhered to the diversified development, despite major multinational tobacco companies have taken effective restrictions on diversified development. But they were not able to completely isolate the diversified development. The diversification strategy of Chinese tobacco has entered the bottleneck stage of the development. Severe external environment and their own development requirements, prompting Chinese diverse tobacco industry to seek new breakthroughs.Starting with the theory of related diversification, strategy synergy theory, refocusing strategy theory and other basic theories, combining with the problems of diversification in the actual operation, effectively combining the theory and the present situation. And we should make the practice as the criterion for testing truth, avoiding extreme of theories. In the process of solving practical problems, exploring the auxiliary support of theory, and develop business ideas. We must avoid the harm bring by dependence on empiricism. Through the history of diversified development, its new features, new challenges analyze present situation of China tobacco industry diversification development, at the same time illustrate the inevitability and the pressure of the tobacco industry diversification development.Secondly,analyzing diversified management’s experience of foreign Tobacco business, for example, opening up the global market layout, excavating the value of multi brand, researching innovative products, cultivating the ability of sustainable development, promoting the integration of industrial chain, the rational development of diversification and specialization and so on. Then give advices to Chinese tobacco industry diversification in three areas. They are Training diversified target market, Paying attention to the healthy development of the main industry and Developing international brands. Specifically, Training diversified target market includes promoting scientific rationalization of organizational structure, determining the stability of the diversified investment industry, strengthening ability of risk monitoring, scientific evaluation on the diversification performance etc. And Paying attention to the healthy development of the main industry means the optimization of tobacco’s purchase and supply, improving the profitability of enterprises of cigarette paper, enhancing production efficiency of cigarette products, well-developed logistics system, etc. Developing international brands contains Low-tar brand’s culture, substitutes marketing, shaping international branding and other aspects. Finally, according to the findings, can get the main results of research results, further analyze the problems and look into the future.