Original Post: https://blogs.ubc.ca/jamessl/2013/11/12/lets-make-the-switch/
While reading other’s blogs, I came across this interesting blog post about electric cigarettes. Many have said that electric cigarettes are more safe and less damaging for smoker and this post argues that cigarette firms should switch to produce electronic cigarettes, but I see a number of issues.
For cigarette firms, I believe their machines are not capable of producing electronic cigarettes, thus switching will generate huge cost and it will completely change the operation of the firm.
In a marketing perspective, Phillip Morris and British American Tobacco are both very associated with Tobacco cigarettes. If they also produce electronic cigarettes, it might create confusion for consumer, hindering their sales and profit.
Lastly, bringing it back to the corporate social responsibility perspective, I raise a point that electronic cigarettes might not actually be a substitute to tobacco cigarettes. Most people who smoke do so because smoking is like a lifestyle to them, knowing that tobacco cigarettes are bad for them. The likely result might just be people consuming both cigarettes at the same time.
Sometimes, I wonder can a demerit good producer even be socially responsible. Do they even care?
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