The use of Marijuana other than strictly for medical purposes had remained largely prohibited until states such as Colorado began to legalize it. Currently, numerous individuals are entering into the cannabis business, especially with the expectation that many states will legalize its recreational use as well as with the foresight that different countries around the world will also legalize marijuana use. According to Weed (2020), the cannabis market was projected to grow to about $2.1 billion in consumer sales by 2020, and even to more in the subsequent years. Therefore, from the onset, cannabis business seems to be viable and lucrative with proper strategies. Nevertheless, legal issues remain the most prominent barriers to entry into the marijuana business as the industry is highly regulated. The rationale behind the high regulation seems to be about preventing abuse of the drug. In order to build a formidable marijuana business, breaking barriers to entry will involve adhering to all legal guidelines, and to raise the entry barriers as well as to modify competition, it is necessary to invest immense capital to expand and create diverse products from cannabis.
Reference
Weed, J. (2020, January 26). Cannabis industry: 2020 predictions. Forbes. https://www.forbes.com/sites/forbestreptalks/2020/01/26/cannabis-industry-2020-predictions/?sh=695889f43f31
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