Question

Question 1 a) In the industry-lifecycle model, explain which stage the vaping industry is in and why? Explain the theory with case-specific examples to support your position.
b) In the industry-lifecycle model, explain which stage the general cigarette/tobacco industry is in and why? Explain the theory with case-specific examples to support your position.
c) Identify and discuss what can a company do to deal with declining sales in an industry?

Question 2 Is Juul a socially responsible company? Why or why not? Consider the four levels of corporate social responsibility (CSR) as part of your analysis with case examples.

Answer 1

Solution 1:

The ecigarette or vaping industry is into growth phase as it still grows at 20 percent CAGR since last 6 years of inception and has tremendously been proliferating into emerging markets. It has grown from 14 billion dollars to 29 billion dollars within last 3 years.

However general tobacco industry is in matured phase with oligopoly market structure and medium entry barriers as its been 200 year old industry with saturated consumption and nominal CAGR growth rate with large players like Phillip Moriss and ITC ruling the globe.

To deal with declining sales or diseconomies of scale, the company must lower down marketing spends unnecessarily and adopt low cost word of mouth marketing and ijduce referral porgrams such that the chin of users grows exponentially and each additional user benefits by bringing onboard other users who are untapped. This decreases costs and grows sales exponentially and helps penetrate market easily.

Solution 2:

JUUL has been recogniswd as ethical and social responsive company with great marketing initiatives into CSR domains viz. Healthcare and education and has actively contributing in major fundraising campaigns which has gaines high traction.

Moreover 2 percent of annual profit are donated towards other CSR campaign by government. It also abides by showcasing transparency in CSR reporting and has strong corporate governance standards with risk management frameworks and ethical auditing in place.

The four components of CSR being - philanthropic responsibility, ethical responsibility, legal responsibility, economic responsibility are all demonstrated above.

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