Reference no: EM132299423
Joint Ventures: Greece Cultivates Business Opportunities in Cannabis
By Nektaria Stamouli | Jan 08, 2019
TOPICS: Competitive Advantage, Factor Endowments, First-Mover Advantages
SUMMARY: With views on cannabis evolving globally, businesses in Greece hope to take advantage of the changing views. Greece legalized cannabis for medical use in 2017 and lifted a ban on growing and producing it in 2018. Medical-cannabis use is currently allowed in nine countries in Europe, but more are considering allowing it. Greece's plentiful sunshine and mild winters make it an ideal place for cannabis cultivation and its easy access to other European countries also make it an ideal location to produce the product. Europe's medical-cannabis market could exceed €50 billion in annual sales. Much of Greek society is traditionally conservative and suspicious of cannabis, but the nation is in such dire need of investment to help it recover from its deep economic woes that criticism of recent cannabis investment has been muted.
CLASSROOM APPLICATION: This article can be used to discuss how a nation's factor endowments can allow its businesses to create a competitive advantage in specific industries. The implications of first-mover advantages can also be explored.
QUESTIONS:
1. (Introductory) What factors make Greece an ideal location for cannabis cultivation?
2. (Introductory) Why does Greece appear to be more accepting of investments in medical cannabis than in years past?
3. (Advanced) How important will first-mover advantages be as Europeans become more accepting of medical cannabis use?
4. (Advanced) What challenges face firms in Greece that want to offer medical cannabis?