Business Analysis of The Swedish Match Company Essay

AbstractThe purpose of this paper is to research Swedish Match, a multinational company and its possible decision to enter or not into France, a new market. The research process encompasses the screening of the country's basic needs (retailers and consumers), financial and economical situation (Inflation trend, exchange rate, and interest rate), political and legal background (labor laws, trade barriers, different organizational structures, regulations on cigarettes, and European Union standards on tobacco products), sociocultural aspects (Aesthetic, religion, material culture, language and gift giving), possible competitors, and final decision. In addition, we covered important aspects that need to be addressed when doing business in France by the Hofstede's five dimensions and Trompenaars seven dimensions.Background of Swedish MatchSwedish Match is a company based in Stockholm, Sweden and created in 1992 from the merging of two very old Swedish companies, AB Svenska Tobaksmonopolet 1915 and Svenska Tndsticks AB 1917. The company is specialized in tobacco products, especially, snus and moist snuff it also manufactures and sells lighters, matches and machine made cigars. The company has production units in six different countries. Our expertise based on more than two hundred years of experience makes us one of the leaders on this field, selling mainly in Sweden, Canada and in the United States. Our most known brands are General Snus, Gteborgs Rap, Ettan. In 2015 the company had a turnover of 1 593 460. Although, the company is well developed in Scandinavia and in the North American continent, which allows it to expand its market share, the company would like to expand in Europe where a big market is in place. In this case we are trying to introduce our snus, moist snuff and chewing tobacco products in France in order to enter the European market and increase our market value, and market share. Basic NeedsConsumersThere are approximately 16 million people smoking in France today that is about one-fourth of the population. There are new laws being set in place prohibiting...

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