Jabwood International111
Jabwood International: The Risks of Expanding East
Case Study Assignment 2
SMGT4460 - International Business
Kevin Carthy, Steven Liu, and Emily Scott
Table of Contents Executive Summary 3
Introduction 4 Demographics 4 Government 5 Physical Infrastructure 6 Economics 7 Wood Industry 7 Entering Markets 8
Fiscal Characteristics 8
Industry Threats 9
Competitive Analysis 10
Recommendations 14
Implementation 15
Conclusion 17
Executive Summary
Jabwood International, based out of Lebanon, is a leader in the wood product industry serving multiple markets. At one point Jabwood was one of the biggest companies in Lebanon and the Middle East in regards to their services, market share and profits. Unfortunately, a recent political uprising has resulted in Jabwood loosing exclusive rights with their main supplier. This poses a severe threat to their already declining sales; therefore Jabwood must decide if and how to penetrate Saudi Arabia and China in order to increase profits and their competitive edge.
As Jabwood considers expansion into Saudi Arabia and China they need to ensure to evaluate each country’s characteristics. The demographics of the market, government, economics, wood industry and many other factors should be researched.
Jabwood has a long history in the market and offers a range of services which are only a few of their strengths. However; they are currently limited in terms of growth and the reliance on one main supplier has left them weak. In order to change this Jabwood should look into expanding into other markets but need to be wary of competition and different consumer trends.
China is the biggest construction market in the world with a large population making it a very attractive destination for global expansion. However; China is culturally diverse which is quite challenging for foreign companies to manage.
Case Study Assignment 2
SMGT4460 - International Business
Kevin Carthy, Steven Liu, and Emily Scott
Table of Contents Executive Summary 3
Introduction 4 Demographics 4 Government 5 Physical Infrastructure 6 Economics 7 Wood Industry 7 Entering Markets 8
Fiscal Characteristics 8
Industry Threats 9
Competitive Analysis 10
Recommendations 14
Implementation 15
Conclusion 17
Executive Summary
Jabwood International, based out of Lebanon, is a leader in the wood product industry serving multiple markets. At one point Jabwood was one of the biggest companies in Lebanon and the Middle East in regards to their services, market share and profits. Unfortunately, a recent political uprising has resulted in Jabwood loosing exclusive rights with their main supplier. This poses a severe threat to their already declining sales; therefore Jabwood must decide if and how to penetrate Saudi Arabia and China in order to increase profits and their competitive edge.
As Jabwood considers expansion into Saudi Arabia and China they need to ensure to evaluate each country’s characteristics. The demographics of the market, government, economics, wood industry and many other factors should be researched.
Jabwood has a long history in the market and offers a range of services which are only a few of their strengths. However; they are currently limited in terms of growth and the reliance on one main supplier has left them weak. In order to change this Jabwood should look into expanding into other markets but need to be wary of competition and different consumer trends.
China is the biggest construction market in the world with a large population making it a very attractive destination for global expansion. However; China is culturally diverse which is quite challenging for foreign companies to manage.
Cited: Apaydin, M., Jabado, R., Obeid, H., & Danhash, B. (2012). Jabwood International: The Risky Business of Expanding East. Jabwood International: The Risky Business of Expanding East.