MABE Case Final

2664 WordsApr 23, 201511 Pages
MABE:Learning to be a Multinational Business Strategy 78-651-01 Professor Dr. Jonathan Lee Ali Nasir 104145421 Bing Ma 104004010 Qazi Zaeem 104145746 Qiao Yu 104127476 Key Problem Under a bad situation, the dilemma is how to make a market entry in Russia successfully MABE, which initially produced kitchen cabinets, was founded in 1946. It has succeeded in expanding range of products to fridges and stoves in a wider business scope in Central America,the Caribbean,Maxico, Latin American and the U.S. Considering the future development, MABE thought of establishing joint venture in Russia because Russia was the ‘last frontier’ with good opportunity and conditions in the future, such as the largest population, a highly educated…show more content…
It will help investors build global brands. 6. Legal Factor:As for legal factor, the Russia government supports foreign investment anyway. For example, in 2011, the government established $10 million fund to attract foreign investment. Additionally, Russia recently provides an innovation program in the whole country, such as a center for innovation, many techno parks and economic zones. Internal Analysis VRINE Analysis Value & Rarity (High): MABE is a technology driven company that strives for creating value for its products. It means that the firm’s primary task is to develop their proprietary technology through R&D. Ramiro Perez changed the team’s old ideas with “linear mindset” into a new thinking mode, which requires the team to take an incremental approach, start from scratch and delve deeper in the needs of market. As a newly developing market, Russia is under a consumer boom. Due to this reason, the success in Russia can bring specific values to MABE. Inimitability and non-substitutability (High): MABE has brought great competitive power in its products which are hard to imitate and substitute. On the other hand, the joint venture with GE helped MABE builds its own advantage in global appliances business. Finally, the concept of “action learning team” is also a particular idea which is invented by MABE’s alliance, which is an inimitable

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