A Note on the Cuban Cigar industry
Title: A Note on the Cuban Cigar industry
Category: /Society & Culture/Education
Details: Words: 337 | Pages: 1 (approximately 235 words/page)
A Note on the Cuban Cigar industry
Category: /Society & Culture/Education
Details: Words: 337 | Pages: 1 (approximately 235 words/page)
General Environment Analysis:
1. Economic segment: Cuba is command-economy, and is still a poor country. The GNP per capita of 2002 is just $1700. The domestic market is not in the perfect situation. The government of Cuban still has to face trade deficit, foreign exchange and energy problems. (Mild threat)
2. Political-Legal segment: In 1990s, Cuban government implemented an austerity program to steer through the crisis and Helms-Burton Act added the burden to Cuban economy. However, the US government
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exclusive dealers distribute Havana cigar throughout the world and only these dealers have access to the cigar supply. (Threat)
4. Threat of substitute product: Low. Although cigarette is another industry of Cuba, cigar is still very popular in the world because of its high quality and reputation. (Not threat)
5. Rivalry: Moderate. Now, some other countries can plant Cuban tobacco and make high quality cigars. However, Cuba can produce the best cigar in the world. (Mild opportunity