The Smokie's case represents a small business that had a rapid growth through collaborative strategies (franchising) taking advantage of the opportunities arising from the explosion of a new business: the electronic cigarette. However, the case demonstrates as the market for electronic cigarette, that in its early life cycle had the typical features of a "blue ocean" (a business with few competitors able to meet new needs for new clients), can be transformed into an "black ocean "(a business with low profits and with no prospects of development) because of the actions of regulators in matters of taxation and regulation.
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