Phillip Morris International- What Recent Strategic Choices

Phillip Morris International- What recent strategic choices made top folks organization company competitive? Can categorize choices Porter's generic strategies? Explain. From SWOT perspective developed previous modules, successful strategy 1. Philip Morris International Recent strategic choices Philip Morris International was traditionally part of the Altria Group, but in 2008, it separated from the parent company in a major strategic effort and managed to become an independent organization.

This strategy proved highly successful for the firm, which managed to increase its sales levels and became the sole decider as to how investments would be made. Since its rupture from the Altria Group, Philip Morris International has substantially developed.

The split between PMI and Altria is an important strategic choice marking the recent past of the international tobacco company, and it is highly successful from the competitive standpoint, propelling the company as the international leader of the industry, with an estimated share of 27.6 per cent; the figure is valid for 180, minus the United States and China (Philips Morris International 2010 Annual Report). This increase in the market share reveals how the separation of PIM from Altria has represented an effort to further support organizational competitiveness.

Additionally, it can be argued that the strategic choice has even been perceived in light of Porter's four generic strategies, namely the segmentation strategy and the differentiation. Specifically, the company strived to expand into as many markets as possible, but it also emphasized on the differentiation of the products, so that it ensured that its tobacco products are able to serve as many tastes and as many pockets as possible.

The strategic choice of separating from the Altria Group is also noteworthy to assess through the lenses of the SWOT analysis. Specifically, it is important to see how the separation has capitalized on the strengths, reduced the weaknesses, exploited the opportunities and protected the firm against the threats. These refer to the following: Strengths: The separation from the Altria Group has created a sense of individuality and as such enhanced the brand, already a strength for PMI.

Also, the subsequent strategies which followed from the separation from the parent company allowed Philip Morris International to consolidate its leading position within the international arena and to enhance its results and financial stability -- both of these issues represented strengths and they were enhanced in the aftermath of the slit from the Altria Group. Weaknesses: A major weakness of PMI as part of the Altria Group was that it did not enjoy financial and decisional independence.

This means that they shared in their financial results with the rest of the group and that the executives of the group had a say in the decision affecting PMI, even if they did not possess the expertise to influence the decisions. The separation virtually eliminated these weaknesses. Opportunities: The split from the Altria Group allowed PMI to freely develop and implement its strategies of international expansion, which were significantly supported by the environmental opportunity of opening boundaries and liberalizing markets.

Threats: Finally, at the level of the threats, it has to be noted that the separation from.