Jabwood International

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Multinational Corporations
Jabwood Case Write-up

Mohammad Ismail

Page: 1

Background & Problem Identification
Jabwood, a timber trading company with branches in Lebanon and a strong distribution and service network all over the Middle East, is owned and operated by the Jabado family since the
1930s.Recently it has experienced a fall in its sales volume and market share due to the middle eastern uprising and the falling demand.. Jabwood is expecting to lose the revenue and market share further as TANITA (competitive edge) is extending its exclusive sales rights from Jabwood to other companies.
Jabwood is currently considering international expansion into new markets – in particular Saudi
Arabia and China – to offset these declining revenues. This case examines the macroeconomic environment of Lebanon, China and Saudi Arabia, and the timber industry in these countries.
The characteristics of a successful international expansion are considered. Besides identifying attractive criteria for each country, the case requires a decision on a strategy to enter the market to ensure a successful expansion of the company.
Given the risks involved and the potential profits from each of these countries, Jabwood has to decide whether to expand in any market or both, and the input mode to be taken to increase your chances of success. To summarize the objective of this case, Jabwood has to answer the following critical questions
Should Jabwood expand?
To China, Saudi Arabia or both?
Expand immediately, one at a time or only one of them?
Should the company rely on exports or consider other modes of entry?

Page: 2

SWOT Analysis (Jabwood at…...

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