Study On Industry Integrates In The International Competitiveness

Now days,with the entering to WTO of China,the tobacco market is more and more opening.How to compete with the international fellows is the main problem to China tobacco industry enterprise.Although China has the biggest market in tobacco,the scale of the tobacco enterprise is smaller to the international tobacco company.The small enterprise is too weak,can't withstand the challenge of international competitiveness. The best way for the China tobacco companies is to grow bigger and stronger.But the environment is not fit for the growing because of the planned economy,local government set barriers for the companies from other places in order to increase tax incomes.This study is situated in the theoretical framework of industry organize,a filed that consider the relationship of the industry structure,the enterprise behavior and the market performance.This article analyses the gap between China tobacco industry and international tobacco industry,find that the organization of China tobacco industry is not efficient,tobacco companies have more profit,and they are not invest a lot on innovation and advertise.We argue that China tobacco industry should be integrated,so that it could erect about three giant tobacco group to compete with the international tobacco giant when China government abolish the monopoly policy of tobacco industry.