A new entrant would have to face significant economies of scale in order to compete against the two largest firms. Product Differentiation It would be difficult for a new firm entering the market to establish a well recognized brand name. Swedish Match even has rights to market many of the non-Cuban brand names in the U...
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Altadis has a joint venture with Habanos S.A. who owns all Cuban brands outside the U.S. Another barrier new entrants may have to face is the difficulty associated with creating a brand name that customers trust to be true to its name. Brand pirating and forgery have likely caused some consumers to be weary of brand names signifying Cuban made cigars...
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