Vol. I (2020), No. 1
ANALYSIS OF TOBACCO INDUSTRY ATTRACTIVENESS: CASE OF CROATIA
Bojan Moric Milovanovic https://orcid.org/0000-0001-7676-6983
Libertas International University, Croatia
Darko Solaja
British American Tobacco, Croatia
Professional paper
DOI: https://doi.org/10.47954/ijcbe.1.1.1
JEL Classification: L10, L66, M21
Abstract
Tobacco industry is one of the most profitable global industries with the steady increase in global demand for tobacco and tobacco related products. Tobacco industry in Croatia has a centuries-old tradition and tobacco is one of the most important non-food agricultural crops produced in Croatia. Moreover, tobacco industry in Croatia is one of the major revenue sources of the government’s budget. The aim of this paper is to determine whether tobacco industry in Croatia is attractive enough for a new player willing to enter the market. Paper provides brief overview of the tobacco industry and the impact it has on Croatian economy. Furthermore, paper explains how excise duties and product prices changed over time, shows market consolidation and concentration before and after the EU accession, and in detail depicts forces which determine industry’s profitability, i.e. its attractiveness.
Key words: tobacco, market concentration, Five forces framework, Croatia
Full text
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