A Note on the Cuban Cigar industry

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 …

…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