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Threat of New Entrants
One of the most important considerations to take into account is the ability for new firms to enter the industry. The likelihood of new entrants entering the Cuban cigar market is possible. However, barriers to entry tend to deter new firms from entering. The embargo provides a protectionist barrier against any U.S. competition entering the industry.
New entrants would be expected if the cigar industry were to expect an increase in sales as happened during the 1990's. However, due to sales leveling off, acquisitions, and the dominance of Altadis and Swedish Match, the threat of new entrants is not significant. The cigar industry, like most industries, is always subject to imitation or low cost companies entering the market and attempting to replicate or undercut others.
The reactions of existing competitors may serve as a deterrent to new firms desiring to enter the industry. Altadis and Swedish Match probably posses significant resources to combat......

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Approximate Word Count: 1447
Approximate Pages: 6 (250 words per double-spaced page)

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