MABE Case Final

Better Essays
MABE:Learning to be a Multinational

Business Strategy
78-651-01
Professor Dr. Jonathan Lee

Ali Nasir

104145421

Bing Ma

104004010

Qazi Zaeem

104145746

Qiao Yu

104127476

Key Problem
Under a bad situation, the dilemma is how to make a market entry in Russia successfully
MABE, which initially produced kitchen cabinets, was founded in 1946. It has succeeded in expanding range of products to fridges and stoves in a wider business scope in Central
America,the Caribbean,Maxico, Latin American and the U.S. Considering the future development, MABE thought of establishing joint venture in Russia because Russia was the
‘last frontier’ with good opportunity and conditions in the future, such as the largest population, a highly educated workforce, unlimited energy and resources and so on. But when the financial crises were coming, the advantages were broken down. Facing this bad situation,Mabel was wondering how to succeed in entering Russia market?
External Environment
Porter’s Five Forces Analysis
Rivalry (low): MABE has been the largest manufacturer in Latin America and commands a strong position in the U.S market. In Russian market, Indesit, Bosch-Siemens and LG who produce locally can be a threat to them in terms of rivalry.
Power of Suppliers (potentially low): In case of MABE, there is not enough information regarding the suppliers as to which companies supply MABE with the necessary equipment.
However considering that the appliance industry is highly competitive and contains many suppliers, the power of suppliers might potentially be low.
Power of Buyer (High): Due to the presence of large number of firms in the industry like LG,
Bosch-Siemens, Samsung, Electrolux means that the buyers have a lot of options to choose from and they can easily switch from one firm to another.
Threat of Substitute (low): The appliances that MABE manufacturers cannot be substituted easily as they are now essential household items. The technology can be changed but the
basics

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