" An email on the Cuban Cigar Industry”

1 . Hazards of new traders:

Merchandise differentiation can be major participant in the market of Cuban Lighters, with specific brands staying linked to reputation and reverance. Also, limitations from the globe make it difficult for new traders, because of operate embargos set up by a many the most highly effective countries in the world, including the Usa.

Benefits of suppliers:

Cigar industry is focused by two major suppliers, Altadis and Swedish Meet, which control the circulation of Havana cigars and Cuban branded names, with Altadis being the largest cigar company in the world.

Benefits of buyers:

Buyers are willing to pay premium price intended for quality cigars, therefore , the power of the buyer is extremely minimal, since cigar enthusiast have increased worldwide.

Threats of substitutes:

The threat of alternatives is bigger, where the actual tobacco seed has been farmed in spots outside of Tanque, including the Usa, Dominican Republic, and Honduras. As known in the Case, 250 million pipes were released to the United States from the Dominican Republic.

Competitive Rivalry:

Rivalry in the Cuban cigar market is extremely substantial, where the market growth features tapered away because of intense competition. Projections were full of the nineties for Cuban Cigar imports; however , with all the fear of reduction in top quality and exclusivity of the cigars, the predictions were decreased. Even though there have been a steady increase in exports, it has not been heavy, exhibiting the fact there are few " real” suppliers of Cuban cigars.

2 . Provided the previous research, based on Porter's Five Forces model, I might without a problem invest in the Cuban cigar sector. For a few decades now, the industry have been on the rise, with cigar lovers always remaining loyal and faithful to their preferred styles of cigars. Initially, the cigarettes firms were increasing their production quickly, all the while planning to maintain and...