Note on the Cuban Cigar Industry (Revised)
(9 pages of text)
In June 2017, the U.S. president had made a statement regarding his stance on Cuba-U.S. relations. Business leaders were very attentive, as his actions could impact the softening U.S.-Cuban relations started by his predecessor in 2016. A recent MBA graduate in Canada and an avid cigar smoker, viewed this scenario and wondered what effect it would have on the current environment, and if there was potential in the Cuban cigar industry. With an inheritance of $1 million coming available in the next month, he thought back to his strategy sessions and looked to evaluate this industry.
This case is suitable for an early section of the strategic management course, which introduces students to the topic of industry analysis. Porter’s Five Forces Model can be applied using the information provided in the case. The analysis will enable students to understand the dynamic and variable forces that affect the industry and will give them a solid framework for assessing the industry’s attractiveness.
The uniqueness of the Cuban environment and the global nature of the industry add complexity to the case, making it suitable for use in an international management course. In an international business course, the case can be positioned within a section which looks at FDI.
Canada; Cuba; United States, 2017
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