Jabwood International: The Risky Business of Expanding East
(11 pages of text)
Jabwood, a wood trading company with four branches in Lebanon owned by the Jabado family, is contemplating international expansion into new markets — specifically, Saudi Arabia and China — to compensate for a decline in revenues. This case examines the macroeconomic environment of Lebanon, China and Saudi Arabia as well as the wood industry in those countries. The characteristics of a successful international expansion are considered. In addition to identifying the criteria of attractiveness for each country, the case requires a decision on a market entry strategy that would ensure a successful expansion for the company. Given the risks and tradeoffs in each country, Jabwood has to decide whether it should expand in either market or both and on the mode of entry it should adopt to increase its chances of success.
- This case is appropriate for use in an international business course or a strategic management course at an undergraduate or graduate level to introduce market entry strategy.
The case can help the student develop research as well as analytical skills using both macro- and microeconomic methods in order to understand the elements of internationalization.
The case helps students develop awareness of how political, economic and social factors effect decisions of expansion through internationalization.
It teaches students how to quantify and weigh all factors in the business environment according to their relevance to the industry and the company when considering expansion through internationalization.
It enhances students’ ability to evaluate viable entry modes and select optimal solutions to business expansion in international markets.
Lebanon, Medium, 2012
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