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Mabe Learning to be a Multinational Case Solution

Solution Id Length Case Author Case Publisher
1165 514 Words (2 Pages) Jose Luis Rivas Perez, Luis Arciniega Ivey Publishing : W13095
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The threat of a new entrant in the appliance industry was moderate. Russia was categorized along with Brazil, India, and China, which were considered to be experiencing rapid economic development; therefore, Russia was under consideration of all major appliance manufacturers. However, considering the recent poor economic performance of Russia coupled with multiple demographical issues, it had become more of a dilemma than a straight forward decision for every company.

Following questions are answered in this case study solution

  1. Porter’s Five Forces

  • The threat of New Entrants

  • The threat of Substitute Products

  • Bargaining Power of Customers

  • Bargaining Power of Suppliers

  • The intensity of Competitive Rivalry

  1. CAGE Distance Analysis

Case Analysis for Mabe Learning to be a Multinational Case Solution

1. Porter’s Five Forces

ii. The threat of Substitute Products

Threat of substitute products within the appliance industry was considerably low. Though the technological advancement was inspiring huge developments, all appliance manufacturers were anticipating the future shift and were investing millions for research and development, in order to ensure that they are not out to cast in a new era.

iii. Bargaining Power of Customers

The bargaining power of customers was moderate to high. Russia already had a limited population, which was decreasing at a steady rate. Due to the recent global economic crisis, the disposable income of the potential customers was already on the lower side, which resulted in an increase in price sensitivity. However, due to a limited number of appliance manufacturing companies, the power was balanced in between and rarely titled on a higher side.

iv. Bargaining Power of Suppliers

The bargaining power of suppliers was low to moderate. The major issue was with the availability of skilled staff and their element of loyalty; otherwise, there was no problem from the suppliers’ end.

v. The intensity of Competitive Rivalry

The competition in the industry was at a moderate level at present but was rapidly increasing. There were only three major local producers, which included Bosch-Siemens, LG, and Indesit, but Samsung and Mabe-Fagor were importing their products and had managed to acquire a reasonable market share.

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