JB Grupo Empresarial faces a Strategic Decision case study
Carlos Ruiz Lopez 142859
Mary Gelly Armenta y Garza 139508

Case Questions
1. Evaluate the five competitive forces in JBGE’s current market or industrial sector. 1. - Rivalry among competing sellers (weak) The competition in the civil construction repair industry for insurance companies is mostly at the local level, the most attractive markets are in Mexico City, Guadalajara, and Monterrey.
JBGE is one of the few competitors in its industry of a considerable size, the market of each one of these companies is still not as large as JBGE’s market.

2. - Potential new entrance (medium) The high profit margins and the weak rivalry make civil construction insurance sector industry attract new entrants. Entry barriers, in terms of investment or technical knowledge, are low for the industry, but in terms of administrative and technological capacity, relationships with the insurance sector, and know-how on the peculiarities within the market are considerable barriers.

3. - Buyer power (strong) The market growth each year and the good deal with insurance companies make a high level of buyer power for these businesses.

4. - Industries offering substitutes product (weak)

The substitute levels are weak because JBGE was the first business of this kind in the region and it has held special relevance and visibility for insurance companies.

5. - Supplier power (strong) Supplier power is strong because the company have a strong dependence with supplier, the company have only 52 full time employees and the team leaders contract squads in the outside locations where JBGE operates. Through these team leaders, JBGE works with around 150 contractors in all its different locations.

2. Identify the type of generic strategy that JBGE appears to follow until now. Explain.