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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 any new entrant...
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