Jabwood International: The Risky Business of Expanding East

Case Solution

Marina Apaydin, Rami Jabado, Hiba Obeid, Balsam Danhash
Ivey Publishing ()

Jabwood, a four-branch lumber company in Lebanon owned by the Jabado family, is considering international expansion into new markets, particularly in Saudi Arabia and China, to offset falling sales. This case examines the macroeconomic environment of Lebanon, China and Saudi Arabia, as well as the timber industry in these countries. The characteristics of a successful international expansion are taken into account. In addition to identifying the attractiveness criteria for each country, the case requires a decision on a market entry strategy that will ensure the successful expansion of the company. Given the risks and trade-offs in each country, Jabwood must decide whether to expand into one or both markets and how to enter to increase its chances of success.

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