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Case Study

New business models: Abdul Latif Jameel Co. Ltd.

By Arturo Bris

10 pages

June 2012

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Reference: IMD-3-2312

Abdul Latif Jameel (ALJ), based in Saudi Arabia, is the exclusive distributor of Toyota vehicles in the Kingdom. Such monopoly was granted by the government in the 1940s, and has resulted in ALJ becoming the 7th largest Toyota distributor in the world, with a share of close to 50% of the Saudi Market. The case describes ALJ as an example of modern private-public partnership, whereby governments grant implicit or explicit incentives to companies in exchange for firms providing citizens with social services. The case describes ALJ’s social initiatives and its business economics, and can be used as a basis for discussion on new business models and how to reinvent the private sector.

Learning Objective

The case shows how the interaction between businesses and governments leads to win-win situations, whereby society ends of benefitting. It provides a new way of thinking about corporate social responsibility.

Keywords

Car, General Management, Strategy

Settings

Middle East, Saudi Arabia
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Type

Published Sources

Available Languages

English

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