IXSIR Winery of Lebanon
(8 pages of text)
In the summer of 2016, the general manager of IXSIR Winery of Lebanon (IXSIR)—a young winery in Lebanon that offered customers a new level of quality by producing wine from a mixture of grapes harvested from different terroirs—received news of a bomb striking Beirut. IXSIR had been facing challenges competing in the unstable and risky local market, and the general manager realized that the bombing signalled rougher economic times ahead and likely a decrease in wine consumption. He was concerned about how the political unrest in the country could negatively impact wine sales and started thinking about different ways to tackle the threat of an ongoing economic downturn. He also wondered how to mitigate a potential decrease in revenue. Should IXSIR pursue revenue-generating activities such as oenotourism or diversify into different products?
This case is intended for undergraduate and graduate students. It could be used in management, strategic management, and international business courses. This case allows students to assess the different growth strategies IXSIR could follow, such as oenotourism, increased brand awareness, an increased international presence, and product diversification. It allows students to practice a comprehensive approach to business decision making; it covers growth strategies and the creation of competitive advantage through perceived value. After working through the case and assignment questions, students will be able to
- assess the effects of a macroeconomic environment on emerging markets and social trends;
- evaluate a firm’s vision, mission, and strategy;
- evaluate sources of sustainable growth, differentiating between internal and external factors;
- identify viable growth strategies in a highly competitive, highly differentiated market;
- classify and select relevant information, set up decision criteria, and evaluate alternatives when making a decision.
Lebanon, Small, 2016
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