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Value chain

Value chain is the process undertaken by firms in order to achieve desired results by meeting the customer expectations. It includes improving quality of the products, increased flexibility and Just in Time practices among various contributing factors. (Daniels, Radebaugh and Sullivan, 2007) BAT Company is accredited with the best marketing network that have made the company to do well globally.

BAT Company has opened many subsidiaries in many countries for example; it has one hundred and eighty markets all over the world which sells it brands. Research shows that this tobacco company is quite global in nature. It operates branches in Africa, Australia, Asia, Australia, Latin America and the Middle East among other countries. The company has the best distribution channels in the industry which has been a strength that has significantly helped the company to dominate the market for a long time.

The other competitive strategy associated with BAT Company is it has utilized its ability to identify the market segments and hence the competitive position of the company is considered to be high than that of its competitors and has in the process developed workable marketing strategies BAT is the second largest tobacco company in the world and it has

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got many assets that help it to serve a wide range of customers.

This company has got core operating units that have helped it to have a very firm structure. Because of this well build financial base, the company has embarked on product differentiation process where the products of the company have been viewed to be unique and that is the main reason why there has been constant increase in sales.

The growth strategies of the company include market penetration whereby the company has sold existing cigarette products in existing markets. The company has also embarked on market development whereby the company has formulated strategies of expanding to new markets with existing products for example in Africa. It has also formulated new cigarettes products for new markets in those places. (Kotare and Helena, 2004)

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