Yunnan Cigarette Industrial Enterprises Development Strategy Of Merger And Reorganization

China's tobacco industry situates important position in national economy. Due to long term's monopoly protection, it is beyond the market competition. After entering WTO, the potential crisis is gradually obvious. Low efficiency under monopoly protection would cause new challenge to tobacco industry. Introducing competition is the trend of economic globalization. Although China carries out strict monopoly policy, it is no doubt that world tobacco enterprises' incorporation affects China Tobacco greatly. Especially with the rapid boost of competition strength of Philip Morris, B. A. T, Japan Tobacco Company and Empire Tobacco Company, who are multinational tobacco companies and have long-term communication and exchange with China Tobacco. China Tobacco experiences increasing external pressure. Under this circumstance, how to quickly turn the mainstay enterprise and famous quality cigarette brand into big and powerful one and constantly upgrade market centralization and build up overall competition strength has naturally become China Tobacco's strategic choice which follows the reorganization and incorporation trend of world tobacco industry.Tobacco industry is a pillar sector of Yunnan province. Yunnan Tobacco has the obligation to positively respond to nation's appeal to launch incorporation and reorganization, make Yunnan tobacco enterprise to be big and powerful, foster world famous quality cigarette brand and increase centralization of tobacco industry. However, Yunnan tobacco enterprises face a lot of difficulties during the course of incorporation and reorganization. Incorporation and reorganization are in their beginning stages and have not achieved anticipate result. As an employee of Yunnan Tobacco, I am worried about the prospect of Yunnan tobacco enterprises. In this paper, applying strategic management theory, industrial structure theory, implementation strategic reorganization theory in state-owned enterprise and analysis method of SWOT, PEST to systematically analyse the strength, weakness, opportunity and threat of Yunnan tobacco cigarette enterprises, elaborate world tobacco's current situation, reorganization situation, development trend and the influence to China's tobacco industry after entering WTO, particularly analyse Hongta Group's reorganization and put forward incorporation and reorganization thought and suggestion for Yunnan tobacco industry enterprises. Hopefully, it will positively influence the development of Yunnan tobacco industry in the period of transition and enhance comprehensive competition strength of Yunnan tobacco cigarette enterprises.