Tabreed Case Study Solution

Tabreed is operating with the help of its partnership with SNC Lavalin a Canadian Engineering Company for the structure, design and building of district cooling plants. The company also holds the manufacturing of pipe for its cooling district plant.
Threat Barriers to entry (High):
The company is operating with help of government entity, so there is very less chance of new entrants. Even though some companies are operating in the same industry, but there capacity is very less as compared to TABREED.
Bargaining power of customer (low/medium):
Property state developers are fascinated to the District Cooling worth proposal plan because the unregulated space can be sold or rented thus cultivating the project’s effectiveness and success. The planned

DC founder in the UAE:
Tabreed has had the chance of existence as a founder in district cooling for an extensive long time, so the company has the knowledge of the UAE and GCC market.
Ecologically Sociable Technology:
The company is operating with the latest technology as compared to traditional air conditioning technology, which gives the company chance to stay stable for the long time in the market
Existence in Eye-catching Market:
The UAE and Saudi Arabia is growing at very fast track, so, there is great chance for TABREED to capture the major market share and an attractive investment for the its customers.
Weakness of the Company:
Financial Leverage:
The company is highly leveraged and also is in expansion mode, the profit of the company goes to the interest expense i-e in the payment of interest to its creditors.
Opportunities of the Company:
Development in Other GCC

The company usually leverage on its success story with major customers such as Abu Dhabi Yas Island, Sheikh Zayed Grand Mosque, Dubai Metro and the Pearl.
Also, they are into partnership business with some major firms too in the industry, mostly through forward integration by supplying chilled cold water to those companies and owning substantial share in the company’s business. Such companies include S&T cool district cooling company, Sahara cooling and air conditioning, industrial city cooling company. The company focus as also shifted to be a regional power player in GCC region and are part owner of the following companies in GCC region; Saudi Tabreed , Tabreed Oman, Bahrain District cooling company, Qatar district cooling company.
The advertising strategy is usually through newspapers and focuses on private developers, but main channel of product sales is through direct sales by work force by bidding for air conditioning of major projects in the region.
The method of distribution is through channelling of underground pipe to various structures of their customers, and the customer will then regulate it usage of the