The company chosen is Phillip Morris Tobacco Company located in Richmond. This is a company that opened its cigarette production plant in the southern parts of Richmond in 1973. Now over forty years, the company has flourished in the area, producing nearly half of the cigarettes consumed in the U.S. Richmond has river navigation which is an ideal area for a port as the city spreads along the rivers, commerce centers, and residential districts along its smooth topography ( McDaniel &Malone, 2012 ). The region has a modern transportation system and well positioned next to the ports which makes it easy for the shipping of the materials. Phillip Morris Tobacco Company chose to locate its plant in Richmond due to its excellent transport system which allows for easy transportation of the products to the market. Other factors that the company could have considered are the presence of a port which is connected to roads making easy for the company to ship in raw materials and ship out the final products. Other factors could have been the continued commercial success of the cities in the south since the arrival of the European settlers, attracting more people thus creating availability of sizeable local market as well as labor.
Location in Richmond has therefore availed many strengths to Phillip Morris Tobacco Company. The regional road networks have expanded, offering a connection of the port to many other tobacco plantations and many other well-developed towns ( Stepanov et al., 2012 ). This is a benefit to the company as it is accessible to proper transportation mechanisms and have an easy reach to the market provided by the large population. Also, there is no other tobacco company in Richmond other than Phillip Morris thus creating a competitive advantage in the area. This location, therefore, makes it easy for different facets such as the supply chain to be more efficient. With modern transport system and automation, the company’s supply chain can be easily monitored as goods and materials are transported from one point to the next.
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References
McDaniel, P. A., & Malone, R. E. (2012). “The Big WHY”: Philip Morris’s Failed Search for Corporate Social Value. American journal of public health , 102 (10), 1942-1950.
Stepanov, I., Knezevich, A., Zhang, L., Watson, C. H., Hatsukami, D. K., & Hecht, S. S. (2012). Carcinogenic tobacco-specific N-nitrosamines in US cigarettes: three decades of remarkable neglect by the tobacco industry. Tobacco control , 21 (1), 44-48.
