Al Junaid industrial group: exploring business development strategies during COVID-19 pandemic

Abstract

Learning outcomes Expected learning outcomes are as follows: to understand the nature of heating, ventilation and air conditioning (HVAC) manufacturing industries based on Al Junaid Industrial group when considering entering such businesses. To understand how unexpected short-term shocks such as a global pandemic may require long-term changes in a company’s outlook and planning. Discuss the marketing mix strategy that the Al Junaid Industrial group business products and services elements follow. To understand the competitiveness of Al Junaid group’s business environment and to identify the potential for business growth. To gain skills at developing a marketing strategy using the products, price, place and promotion model. Case overview/synopsis Al Junaid Industrial group is a small to medium-sized HVAC manufacturing company created over 12 years ago, in the United Arab Emirates. It has a production line company in the Sharjah industrial area with a capacity of 5,000 ft. The company not only manufactures air conditioning and its accessories but also provides installation and maintenance services. As for its international connections, it imports raw materials such as aluminum and exports air conditioning grills and accessories, offering installation services to many destinations, including Kazakhstan, Afghanistan, Uzbekistan and the Gulf Cooperation Council. The company has recently suffered a setback due to the COVID-19 pandemic. In March 2020 its net revenue and profits decreased by an average of 40%. As a result, Al Junaid Industrial group currently faces several internal and external challenges affecting its business performance such as high operating expenses, low market demand and stiff competition. Due to these challenges, this case study argues that Mr. Obaid Al Junaid, the Chief Executive Officer, should develop a new marketing strategy aimed at raising revenues to levels closer to those observed before the onset of the epidemic. Complexity academic level This case could be used in undergraduate and graduate classes of the business management field, as well as in development programs for managers in small to medium-sized enterprises (SME). Students (final year students of an undergraduate program for a bachelor’s degree) are expected to have a basic knowledge of Strategic management and business in general. It is preferred that the students have basic knowledge about small-to-medium businesses. Additionally, the managers in SME should be familiar with operational management, business management and marketing strategy and some of the challenges faced by managers in industrial businesses. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.