Victoria Secret in Turkey

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The Middle East consists of several countries in West Asia. Armenia, Azerbaijan, Bahrain, Gaza Strip, Georgia, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Turkey, United Arab Emirates, West Bank, and Gaza, are all the 19 countries that are categorized as the Middle East. The term Middle East is considered to be a Eurocentric term and is used as a synonym for the Near East. Since the Middle East extends over so many countries, there are major economic, cultural, and religious differences. Some of the countries in the Middle East are extremely wealthy oil nations like Saudi Arabia, Qatar, and United Arab Emirates, that generate large amount of revenue and are on the top list of the world’s wealthiest nations based on income per capita. And then there are some really poor nations, like Gaza and Yemen, which are characterized by unrest and war. The Middle East also varies a lot when it comes to culture and religion. Islam is the biggest religion in the Middle East and many of the countries have really strict religious rules, with little freedom for women. But there are also countries where Judaism and Christianity are represented, and women have equal or almost equal rights as men. Victoria’s Secret was founded in 1977, in San Francisco by Roy Raymond. It started with three stores and a mail-order catalog. In 1982, after only five years of operations, Raymond sold the company to Leslie Wexner for $4 million. During the 80’s Victoria’s Secret rapidly expanded into U.S malls.  By the early 90’s Victoria’s Secret had become the largest American lingerie retailer, topping one billion dollars. There are approximately 1,000 Victoria’s secret lingerie stores and 100 independent Victoria’s Secret Beauty stores in the U.S. We sell a range of brassieres, panties, hosiery, cosmetics, sleepwear, and other products. In 1995 Victoria’s Secret had their first fashion show, which today has become a huge hit. The show features some of the world's leading fashion models such as current Victoria's Secret Angels Adriana Lima, Alessandra Ambrosio, and Miranda Kerr. Because of the huge differences in economy, culture, and religion, we at Victoria’s Secret decided to focus on one country at a time. We decided that it would be the best opportunity to open our store in Turkey. Turkey has the largest economy in the Middle East based on nominal gross domestic product (GDP) and the cultural and religious barriers are not as dominant as in some of the other Middle Eastern countries. Turkey also has a huge market for tourism.

Market
Turkey has a large population with 71 million people. They have generally a young population, with 61% of the people being younger than the age of 35. Turkey’s average gross national product (GNP) per capita is $7,500. About 71% of the population lives in the urban areas. Istanbul is Turkey’s largest city with about 12 million people, and Ankara, the capital, has about 5 million people. Turkey is located in Southeastern Europe and Southwestern Asia, bordering the Black Sea and the Aegean Sea. Turkey’s location gives them an excellent base for economic activities throughout the region. Turkey has a budget revenue of $176.8 billion and a budget expenditure of $189.2 billion. Turkey is running a budget deficit of 1.6% of real GDP. This budget deficit, together with uncertainty related to the monetary policy-making, and political disorder in Turkey’s neighbor countries, makes the Turkish economy vulnerable to destabilization shifts in investors’ confidence. Turkey has a young and well-educated population, but 10.3% of the Turkish population is unemployed. The labor force is 27.43 millions, where 25.5% works within the agricultural sector, 26.2% works in industries, and 48.4% works within the service sector. Young people between the age of 15 and 24, 25% are unemployed. Women are still an untapped labor force in Turkey. Researchers say that about half of all Turkish women enter the labor...
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