Philip Morris- Increasing prices, profits and pre-mature deaths
Philip Morris International, unlike many of their customers, just won’t die. They recently reported solid third quarter growth on the back of price increases and volume growth, mainly in Asia. Since western countries, with access to medical data and education on the dangers of smoking, are trending away from cigarettes, PMI has been expanding into Asia and to stabilize profits, or increase them, they enact price increases in these new, less developed markets. If you’re keeping score at home that means PMI is going into less developed countries, charging high, and increasingly higher, prices when personal income is low and killing off those who may not even understand the dangers of smoking. Man, I hope PMI is hiring when I graduate!
I will make no attempt to hide my personal bias in this post. I think what Philip Morris is doing is awful and a prime example of corporate irresponsibility and lack of ethics. PMI justifies it all in the name of “building shareholder wealth,” and a means of keeping up volume of sales. Let’s start a dialogue though- do you think Philip Morris is just giving the people what they want or do you think they are taking advantage of less educated populations?
Jake & Alexa