Political Factors

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in 2016-2017, and average 8.2 percent per year over the medium-term (World Bank (3), 2016). Other than, BAT has chosen Myanmar because of the labour cost. Minimum wages in Myanmar remain unchanged at 3600 MMK per 8 hours in 2015 (Refer to appendix 2). MMK is Myanmar currency which named as Myanmar Kyat or Burmese Kyat. According to latest currency converter, 3600 MMK convert to USD is about 3 dollars (XE Currency Converter, 2016) Another reason that Myanmar is chosen as target market is relaxed barriers of entering. According to the original figure, Myanmar hit $8.1 billion during 2014-2015 which is $3 billion more than predicted (Aung, 2016). At 2013-2014 years, Myanmar received $4.1 billion in foreign direct investment (Petty, 2015). Based on previous 2 statement, it’s show that Myanmar had permitted quite a lot investment during that 2 year which also showed the entering barriers is not as hard as few year ago. BAT can take this opportunity to enter Myanmar before Myanmar Investment Commission starting to tighten the barriers. Myanmar encourage foreign investment to enter market in order to gain capital to upgrade their infrastructure such as highway.

Social-Cultural

Myanmar’s has a total of 54 million populations (Worldometers, 2016). One of third and half of Myanmar population consume tobacco in some form (Lim Li Min, 2013). The form of tobacco could be filtered cigarettes or smokeless cigarettes such as chewing tobacco (Canadian Press,2013). As a result of the high demand of cigarettes whether smoke or smokeless cigarettes, BAT which manufacture both of the cigarettes form can take this opportunity to enter the targeted market by introducing foreign brand cigarettes that they manufacture. As time go by, local people will try out the product as the price might be cheap compare to local brand because of the exemption taxes rate. About 45% of Myanmar’s population is below 24 years’ age is prime target group for cigarettes company (Lim Li Min 2013). This 45% of Myanmar’s population will be working and has purchasing power to spend to cigarettes.