Eastern Tobacco Company Essay

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Words: 626 | Published: 11.11.19 | Views: 386 | Download now

Advantages Eastern Cigarette Company is recognized as the largest tobacco producer in Egypt. The company produces distinct products including cigarettes, molasses tobacco, tube tobacco and cigars (Oxford Business Group, 2008). In addition , it produces other products that are relevant to cigarettes. These may include homogenized and filter rods tobacco (Owen & Pamuk, 1998).

Their whole products are divided into two categories. These kinds of may include community and foreign trade products. The company is known as the greatest company making large amount of smoking cigarettes in Egypt Thus, that faces firm competition simply by local and international firms that generates tobacco.

Asian Tobacco Organization is a good example of monopolistic competition (Owen & Pamuk, 1998). This is due to the fact that all cigarette industry is categorized in monopolistic competition. One of the feasible reasons that will make Eastern Smoking cigarettes Company to become categorized in monopolistic competition is the fact that we now have quite a large number of companies which have been producing precisely the same products; yet , they have differentiated them.

Because of this all firms under smoking cigarettes sector are satisfying the industry demand for smoking cigarettes (Solow, 1999). Another reason which makes Eastern Smoking cigarettes Company as a good example of monopolistic competition is the fact that it brings out differentiated products which might be reasonably close substitutes for every other (Oxford Business Group, 2008). For instance, the business brings in the market various kinds of cigarettes. These types of may include homogenized and filter rods smoking cigarettes.

It also produces different types of smoking cigarettes, for instance, molasses tobacco, pipe tobacco. As a result, the company offers one of the qualities of organizations that are classified in the number of monopolistic competition. Due to the fact that products are of close substitutes, there can be virtually any reduction of price.

This could be seen in East Tobacco Firm as they could be in a position to decrease the price with their products (Owen & Pamuk, 1998). This can help them to appeal to large number of buyers and thus, they are really perceived as the biggest company in Egypt making tobacco. One of the main characteristics of monopolistic competition is the fact there are a large number of retailers (Solow, 1999).

They tend to offer differentiated goods. This can be proved in smoking cigarettes industry, because there is quite number of sellers that sell different types of tobacco. For instance, a large number of local businesses are selling same products because Eastern Cigarettes Company. As a result, there is a diverse seller that sells cigarettes like East Tobacco Company. This means that Eastern Tobacco Organization have obtained this attributes of monopolistic competition where many vendors selling differentiated products rule the market.

Eastern Smoking cigarettes Company would not have cost competition. This is due to the fact that the organization has the liberty to conquer its whole customers. As an example, large number of clients prefers Far eastern Tobacco Firm as they provide after sales solutions.

This is a predicament where a client purchases large tonnes of tobacco as well as the company presents to take them to his or her residence. Offering after sales services is one way that Eastern Tobacco Organization uses to draw large number of clients. From the above point of view, it is obviously evidenced that Eastern Smoking cigarettes Company features all qualities that monopolistic competition can be associated with. Hence, it can be labeled as a very good example of monopolistic competition.

For instance, the company features similar products but features differentiated these to different brands. These may include molasses tobacco, pipe cigarettes (Oxford Organization Group, 2008). Therefore , it is an example of monopolistic competition. References

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