Arcelik
1. What resources and capabilities have given Arcelik competitive advantage in Turkey? Which of these are transferable to international operations?
In terms of manufacturing industry, Arcelik holds competitive positions in cost control. Though the labor productivity in Turkey is not as high as that in developed countries, Arcelik still enjoys a young and cheap labor cost(€4.33/hour). Besides, due to the reduced protection of the domestic market, Arcelik started to adopt effective practices in quality management, inventory and flexible production and also, develop its own technologies, making it more independent from and more competitive among its rivals.
2. What are the key challenges that Arcelik faces in Western Europe and how could it strengthen its market position in the future?
Arcelik has managed to enter some other markets with lower price in mid-market and also suffered simultaneously from the Turkish origin image, a negative association with poor quality. In order to avoid associating with the negative perception, Arcelik should position its self as a world brand and link the brand image with innovation and high quality to highlight and reinforce the prestigious brand image.
3. What are the key challenges that Arcelik faces in emerging economies, and how could it leverage its resources to enter new markets, such as South-East Asia?
In emerging market, Arcelik can take better advantage of Turkish origin and positive quality perception than it does in advanced markets, but those fragmented international markets resulted from tariff barriers, competitors’ first mover advantage, etc. requires more efforts to win the market share by acquiring local brand and building up its own sales distribution channels. In order to enter new markets, on one hand, Arcelik, in terms of cost cutting, should do vertical integration in R&D and in global supply chains to keep the production line, supply chain and logistics lean and thin. On the other hand, in terms of increasing
In terms of manufacturing industry, Arcelik holds competitive positions in cost control. Though the labor productivity in Turkey is not as high as that in developed countries, Arcelik still enjoys a young and cheap labor cost(€4.33/hour). Besides, due to the reduced protection of the domestic market, Arcelik started to adopt effective practices in quality management, inventory and flexible production and also, develop its own technologies, making it more independent from and more competitive among its rivals.
2. What are the key challenges that Arcelik faces in Western Europe and how could it strengthen its market position in the future?
Arcelik has managed to enter some other markets with lower price in mid-market and also suffered simultaneously from the Turkish origin image, a negative association with poor quality. In order to avoid associating with the negative perception, Arcelik should position its self as a world brand and link the brand image with innovation and high quality to highlight and reinforce the prestigious brand image.
3. What are the key challenges that Arcelik faces in emerging economies, and how could it leverage its resources to enter new markets, such as South-East Asia?
In emerging market, Arcelik can take better advantage of Turkish origin and positive quality perception than it does in advanced markets, but those fragmented international markets resulted from tariff barriers, competitors’ first mover advantage, etc. requires more efforts to win the market share by acquiring local brand and building up its own sales distribution channels. In order to enter new markets, on one hand, Arcelik, in terms of cost cutting, should do vertical integration in R&D and in global supply chains to keep the production line, supply chain and logistics lean and thin. On the other hand, in terms of increasing