Arcelik: International Aspirations of an Emerging Market Firm
Arcelik, a Turkish appliance manufacturer controlled by Turkey’s largest conglomerate company named Kroc Group. From the beginning, Arcelik products more than half of Turkey’s appliances, including air conditioners, dishwashers machines, cooking appliances, and refrigerators. But since trade barriers declined in 1980s and 1990s, many competitors such as BSH, Haier, General Electronic, Whirlpool, and Electrolux were threatening Arcelik’s market share. In global household appliance industry, consumers tend to view home appliances as commodities, and often value low prices. Some applicants carry small profit and have long life span. Using automated manufacturing plants and low-cost labor is only help in short run for the manufacturers. In order to sell in premium price and increase profit margins, some appliance makers differentiate their product by innovative, value-added technology and features. However, innovation is costly, which caused most major appliance manufacturers began to globalize (Cavusgil, Knight, & Riesenberge, 2008, pp. 277-278).
Arcelik sees its best prospect in emerging, fast-growing markets in Eastern Europe, Asia, and Latin America. Perhaps Singapore could be one of those markets that allow Arcelik to be a lead player in the industry as its aims. Issues
Economic in Singapore. Singapore’s economic is the first issue that attracts Arcelik to enter into this emerging market. Singapore’s GDP shows Singaporean’s buying power, which also affects Arcelik’s products. Analysis
Economic in Singapore. According to Political Risk Yearbook: Singapore Country Report stated; “real GDP growth for the second quarter of 2010 surged to an increadible rate of nearly 19%, on top of registering nearly 17% growth in the first quarter, and that performance has now positioned Singapore to be one of the fastest growing economies in the world.” (2010, p.4).
Singapore is one of the...
References: Cavusgil, T. S., Knight, G., & Riesenberger, J. R. (2008). International Business Strategy, Management, and the New Realities (pp. 277-279). Upper Saddle River, NJ: Pearson Prentice Hall.
Datamonitor. (2010, June). Household Appliances Industry Profile: Singapore. Retrieved April 28, 2011, from http://web.ebscohost.com.proxy.cityu.edu/ehost/pdfviewer/pdfviewer?sid=dd0b0527-55e7-4d04-8736-1b8fc0c0c0e6%40sessionmgr110&vid=4&hid=110
Global Market Information Database. (2010, October 12). Arçelik AS in Consumer Appliances (World). Retrieved May 2, 2011, from http://www.portal.euromonitor.com.proxy.cityu.edu/Portal/Pages/Analysis/AnalysisPage.aspx
Global Market Information Database. (2011, February 21). Consumer Appliances in Singapore. Retrieved May 1, 2011, from http://www.portal.euromonitor.com.proxy.cityu.edu/Portal/Pages/Analysis/AnalysisPage.aspx
Global Market Information Database. (2011, April 4). Consumer Lifestyles in Singapore. Retrieved May 1, 2011, from http://www.portal.euromonitor.com.proxy.cityu.edu/Portal/Pages/Analysis/AnalysisPage.aspx
Miller, T., & Holmes, K. R. (2010, May 1). 2011 Index of Economic Freedom. In http://www.heritage.org. Retrieved April 28, 2011, from http://www.heritage.org/Index/country/Singapore?src=next
The PRS Group, Inc. (2010, September 1). Political Risk Yearbook: Singapore Country Report. Retrieved April 28, 2011, from http://web.ebscohost.com.proxy.cityu.edu/ehost/pdfviewer/pdfviewer?sid=f521e504-acdc-47bf-a643-da74dc341984%40sessionmgr112&vid=2&hid=110
Please join StudyMode to read the full document