Research On The Development Strategy Of Jabil

Electric Manufacturing Service (EMS) is a fast-growing, highly-concentrated and highly competitive industry , top 5 biggest companies in the world account for 65% of global market share . Jabil is ranked as 3rd largest EMS company, its revenue in 2007 is 12.3 billion USD and accounts for 8% of global share . Jabil used to be the leader of the industry and has much higher financial performance and growth rate than industry average. However, starting from 2007, its growth has been significantly slowed , profit has been greatly reduced , and stock capitalization has been dramatically decreased . This thesis is to find out Jabil's strategy problems and formulate Jabil's development strategy .This Thesis uses Fred R.David's Comprehensive Strategy-Management Model as framework . It has applied Michael E.Porter's Five-Forces model to analyze industry competition , used External Factor Evaluation Matrix(EFE) to analyze external environment , used Internal Factor Evaluation Matrix(IFE) to analyze internal resources , used SWOT and Boston BCG Matrix to do strategy-matching , and used Quantitative Strategy Planning Matrix(QSPM) to select strategies. Four major development strategies have come out including enhance market penetration for consumer product segments, enhance market development for medical and automotive product segements, apply integrated pricing strategy and acquire metal supplier to do vertical integration .Research on EMS industry has great practical value. The overall revenue of the industry in 2007 is 165 billion USD, however , the penetration to available market is only 19% , the future growth opportunity is significant . China , as the"world's factory", accounts for 30% of global EMS share , and holds the absolute leading position. Research on EMS industry and development strategy of inside companies can help China to grasp the future growth opportunities and maintain the leading position.