Competitive Advantage For Philip Morris International, competitive advantage is measured with the following five factors and a rating from -6 (worst) to -1 (best): • Product quality • Share market • Brand and image • Customer loyalty • Product life cycle Philip Morris International focuses on providing high quality products. The company is known for selling some of the best tobacco products in the world. PMI scored -1 on the Product Quality factor. Having the highest revenues and profits among top-tier transnational companies (this excludes CNTC which sells almost all of its products in China), PMI is assigned a score of -1 on the market share factor. The brand and image factor is rated as -1 since the Marlboro brand is one of the most recognizable brands in the world and Philip Morris is the most recognizable company of the “Big Five”. PMI also earned a -1 on the Customer Loyalty factor as customers are satisfied with the quality, consistency, safety of the product, and ultimately, are loyal to the PMI brand they smoke. Slowing Revenue Growth and Age of Return on Assets Ratio • Return on Assets • Leverage • Liquidity • Revenue • Profits PMI is 20.43%, which is almost double the next highest ROA of major companies of tobacco products, British American Tobacco. Leverage factors measured debt relative to equity, with the PMI recording the lowest at -2.33 due to negative equity. It has almost an ideal current ratio of 1.02 which measures the liquidity factor. Revenues and profits are also the highest among the “Big 5,” at $80.1 billion and $19.3 billion, respectively. The PMI scores a 6 on all of these factors. Environmental Stability Environmental stability is measured with the following five factors and a rating of -6 (worst) and -1 (best). • Inflation • Technology • Elasticity of demand • Competitive pressure•