Koc holding arc elik white goods essay

More Essay Examples on Market Rubric Tariffs on imports were also being cut to zero, which would also mean that domestic prices would get more and more competitive as a result. Without trade tariff agreements, like those established with the EC, it will be much harder to be as competitive with prices remaining an OEM supplier.

Koc holding arc elik white goods essay

Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Get Access Koc Holding: Its largest subsidiary, Arc elik, is the main manufacturer and market leader of so-called white goods major kitchen appliances in Turkey.

Koc will likely experience an increase in foreign competition, as Turkish tariffs on white goods protecting the local market will be phased out in In its turn, Koc is interested in expanding abroad, as the Turkish market for white goods is getting saturated.

As any company, Koc is interested in growing its sales. Given its existing international experience and the potential increase in foreign competition in its home market, Koc has three options for growth: The question then is: Should Koc expand in the Western European or the emerging markets?

My recommendation for Koc is option 2. Except for the low price advantage, the situation as pictured in Exhibit I looks unfavorable for Koc in Western Europe.

In my opinion, the main reason and most weighing factor in Exhibit I for not further expanding in Western Europe relates to the extremely strong presence of appliances manufacturers in Germany and Italy.

Koc holding arc elik white goods essay

Companies like Siemens, Bosch, AEG and Candy have long established their brands in the Western European appliances market and any newcomer will be confronted with local customers unwilling to buy a refrigerator or dishwasher of a brand unknown to them, even if the price is substantially lower.

This is partially due to the character of this industry: When it comes to daily used appliances, customers feel little need to experiment or even price shop: A dishwasher must work, which is guaranteed by a strong brand from a well-known manufacturer with good services and warranty contracts.

What helped Koc achieve a leading market position in Turkey recognizable brands and an exclusive distribution and service networkworks against it in those markets where an equally strong company has established its brands.

This is also the reason why Koc has been so successful in countries like Tunisia and why it should continue to explore the emerging markets. While the economies may be less stable than the Western European economies, I would argue that Koc has ample experience in unstable economies notably, Turkey in recent yearswhich may in fact give them an advantage over other foreign penetrators of the emerging markets.

Koc should initially focus on the neighboring Eastern European markets. Further tariff and market analysis should indicate which Eastern European market is the most attractive: Absence of a major appliances manufacturer, a relatively stable economy and low tariffs are, of course, ideal.

As regards opportunity, italicized in Exhibit II are those emerging markets with higher unit sales. Transferable to emerging markets? No, as some or all of the emerging markets still have tariffs in place.

Yes, in many markets Koc may be the first dominant player. Can compete on price.

Koc Hodling - Arcelik with White Goods | Essay Example

Yes, given absence of high quality local players. In markets with no established recognizable brand:Koc Holding: Arcelik White Goods Prepared by: Alex Sagastume 10/3 Which Countries are involved in this case?

- Koc Holding Case Study introduction?? Describe the diplomatic relations between those countries? Are there any trade agreements, policies, sanctions, political circumstances, or diplomatic issues which would impact .

Koc Holding: Arcelik White Goods Prepared by: Alex Sagastume 10/3 Which Countries are involved in this case?

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Describe the diplomatic relations between those countries? Are there any trade agreements, policies, sanctions, political circumstances, or diplomatic issues which would impact management’s decision to enter the market? Free Essays on Koc Holding Arcelik White Goods Case Analysis for students.

Use our papers to help you with yours 1 - Koc Holding: Arc elik White Goods Situation analysis: Koc Holding (" Koc ") is an industrial conglomerate in Turkey. Its largest subsidiary, Arc elik, is the main manufacturer and market leader of so-called white goods (major kitchen appliances) in Turkey.

Koç Holding: Arçelik White Goods’ Please type answers to questions 1 thru 5 in a Word Document, using single line spacing, and Times New Roman Font size Please limit answers to about a page (of 1 inch margins), for each question. Koc Holding Case Study Essay examples Words | 4 Pages. Koc Holding: Arcelik White Goods Prepared by: Alex Sagastume 10/3 Which Countries are involved in this case?

Describe the diplomatic relations between those countries? Are there any trade agreements, policies, sanctions, political circumstances, or diplomatic issues which .

Koc Holding: Arc elik White Goods | Essay Example