arcelik turkey work

Click here to load reader

Post on 25-Nov-2015

39 views

Category:

Documents

0 download

Embed Size (px)

DESCRIPTION

Arcelik Turkey

TRANSCRIPT

  • Muhammad Setiawan Kusmulyonosetiawan_kusmulyono@yahoo.com

  • A G E N D ACompany ProfileCase BackgroundTheoretical ConceptAnalysisCase QuestionDiscussionTheoretical ConceptAnalysisQ & A Session

  • T U R K E Y P R O F I L Ewww.lexicorient.com

  • T U R K E Y P R O F I L EG D P 2007www.indexmundi.comhazelnut, fig, apricot, cherry, quince and pomegranate textiles and clothing tourism and banking TURKEYS BEST PERFORMANCE COMPANY ElectronicsArcelik, Vestel (Europe Top 3)ConstructionEnka, Tekfen, Ucgen Insaat (Top International Constructor)AutomotiveFiat (Tofas), Renault (Oyak), Hyundai (Ossan) (Top 6 in Europe)TURKISH NEW LIRA

    AGRICULTURE8.9 %INDUSTRY30.8 %SERVICES59.3 %

  • C A S E B A C K G R O U N DADVANCED ECONOMIESDEVELOPING ECONOMIESEMERGING MARKETSPost-industrial countries characterized by high per-capita income, highly competitive industries, and well-developed commercial infrastructure.USWestern EuropeJapanCanadaAustraliaNew ZealandLow-income countries that have not yet industrialized. They have low buying power, limited appeal to foreign firms, and limited participation in international business.AfricaFormer developing countries that develop their economies more dynamics. EM is transforming into market-driven by liberalizing trade and investment. More participation in international business and regional economic integration.Asia and Latin AmericaInternational Business; Strategy, Management & New Realities. p. 265

  • C A S E B A C K G R O U N Dwww.imf.orgTURKEY;sGDPEMERGING MARKETS

    Chart1

    150.225

    155.61

    164.171

    188.029

    135.543

    173.195

    176.571

    189.416

    205.539

    199.154

    204.888

    153.523

    184.829

    239.822

    300.087

    340.263

    367.33

    GDP (in billion$)

    Year

    Sheet1

    Asia Pacific34%

    Western Europe24%

    North America23%

    Other19%

    Sheet1

    Sales Distribution of Household Appliances

    Sheet2

    1980

    1981

    1982

    1983

    1984

    1985

    1986

    1987

    1988

    1989

    Turkeytahun19901991199219931994199519961997199819992000200120022003200420052006

    GDP, current pricesgdp 150.225 155.610 164.171 188.029 135.543 173.195 176.571 189.416 205.539 199.154 204.888 153.523 184.829 239.822 300.087 340.263 367.330

    YearUS dollars | Billionspercent change

    1990

    1991

    1992

    1993

    1994

    1995

    1996tahungdp

    19972000190

    19982001300

    1999 2000

    2000 2001

    2001 2002

    2002 2003

    2003 2004

    2004 2005

    2005 2006

    2006

    Sheet3

    yearGDP (in billion$)yearGDP (in billion$)

    19901990150.2251990150.225

    19911991155.611991155.61

    19921992164.1711992164.171

    19931993188.0291993188.029

    19941994135.5431994135.543

    19951995173.1951995173.195

    19961996176.5711996176.571

    19971997189.4161997189.416

    19981998205.5391998205.539

    19991999199.1541999199.154

    20002000204.8882000204.888

    20012001153.5232001153.523

    20022002184.8292002184.829

    20032003239.8222003239.822

    20042004300.0872004300.087

    20052005340.2632005340.263

    20062006367.332006367.33

    year90919293949596979899^00^01^02^03^04^05^06

    GDP (in billion$)150.225155.61164.171188.029135.543173.195176.571189.416205.539199.154204.888153.523184.829239.822300.087340.263367.33

    Sheet3

    GDP (in billion$)

    Year

  • T U R K E Y P R O F I L ELift IronCLIP 1

  • C O M P A N Y P R O F I L EOriginsEstablishmentOwnershipBusiness LineProductMarket AreaSubsidiariesKOC Group [Family Business Conglomerate]Appliance Manufacturer [White Goods Business]> 100 productsAC, Dishwasher, Washing Machines, Cooking Appliances, and Refrigerator BrandsBeko, Altus, and ArcelikTurkey, Europe (UK, Italy, Czech, Spain, Germany, Romania, Hungary)Blomberg, Grundig, Elektra Bregenz, Tirolia, Leisure, Flavel, and Arctic

  • C O M P A N Y S U B S I D I A R I E S B R A N D S

  • C O M P A N Y S U B S I D I A R I E S P R O D U C T S

  • C A S E B A C K G R O U N D Turkey is an emerging market Relatively low saturation level Purchasing power is low (outside big 4 cities) 50% are younger population (
  • C A S E B A C K G R O U N D

  • I N D U S T R I A L P R O F I L EIn ADVANCE ECONOMIES, household appliance industry is mature and saturatedIn EMERGING MARKETS, household appliance industry is difficult to charge premium prices and increase profit margina. Innovation is costly Frequent change production methods- Regular re-training factory workersb. Low spending power of buyer

  • I N D U S T R I A L P R O F I L EB S HElectroluxG EHaierMerloniNationalWhirlpoolThe COMPETITOR:TODAY, Merger & Acquisition is the strategy to be Worldwide It caused: only 5 companies control >70% market in Europe (from 400 companies)ARCELIK: Acquired more than 7 companies in EUROPEDishwasherRefrigerators and Vacuum CleanersChina (Low Price)High Technology InvolvementHome LaundryNational

  • I N D U S T R I A L P R O F I L EStandardization the material, parts, and components1Automated manufacturing process 2Arcelik is categorized as HIGH TECHNICAL COMPLEXITY firms. It is operated in fully automated machine and programmed in advance.Joan Woodward; Organizational Design and Dynamics; p. 241 Build manufacturing plant outside original state3Arcelik: Build plant in Russia and Western Europe.Whirlpool: Build plant in China

  • I N D U S T R I A L P R O F I L EHome appliances are commoditiesProduct life-span is 10 15 years the lifecycle is slow Value lower prices create lower profit marginIn advance economies country, market are saturatedDifferent market, different country, different cultureAppliance manufacture & world market share reporter

    Chart1

    0.34

    0.24

    0.23

    0.19

    Sales Distribution of Household Appliances

    Sheet1

    Asia Pacific34%

    Western Europe24%

    North America23%

    Other19%

    Sheet1

    Sales Distribution of Household Appliances

    Sheet2

    Sheet3

  • I N D U S T R I A L P R O F I L EDifferent market, different country, different culturein INDIA: Low Pricein CHINA + LATIN AMERICA: Ample Features but Low Spending Powerin EUROPE: Strict Environmental RulesDifficult to suit the local marketDifficult to charge average price in every countryHard Factors tooling, factory layout, procurement, and design do not provide long-term competitive edge

  • I N D U S T R I A L P R O F I L E

  • I N D U S T R I A L P R O F I L EEmphasize in Dynamic S O F T FactorsMerger and AcquisitionFind Global OpportunitiesComparative AdvantageBenefited from Regional Economic IntegrationErin 1CLIP 2

  • A R C E L I KSUCCESS FACTORSProduce product in lower-income countries1Modernize the operations and Double the capacity2Establish Distribution Centers throughout Europe3Cooperated with IT Companies to build World IT System4THREATSArceliks brands are largely unknown outside Europe1

  • A R C E L I Ks success factorsProduce product in lower-income countries1 Manufacturing plant in Turkey and Eastern Europe (Russia) Arceliks produce appliances less expensively than otherModernize the operations and Double the capacity2 Additional investment to build factory in Russia and adapt new production system technology Established sales subsidiaries in Czech, Hungary, and Italy

  • A R C E L I Ks success factorsEstablish Distribution Centers throughout Europe31.700 unparalleled distribution network (Beko) and 1.700 non-exclusively agents 530 authorized service shopsCooperated with IT Companies to build World IT System4CISCO builds Virtual Networked Organization OnlineEstablish after-sales service networkCOMPETITIVE ADVANTAGE

  • A R C E L I Ks success factorsCOMPARATIVE ADVANTAGEConcept that helps answer the question of all nations can gain and sustain national economic superiorityCOMPETITIVE ADVANTAGEConcept that helps explain how individual firms can gain and sustain distinctive competence vis--vis competitors

  • A R C E L I KTHREATSArceliks brands are largely unknown outside Europe1Brand becomes barrier to entry and threats for short-term successMerger and AcquisitionGlobal Distribution Network- Tailor the meet customer needs in respective country

  • A R C E L I KTo sustain continuous growthTo become a leading global household companyImprove operational efficiencyIncrease investment in high-growth marketsFocus in emerging market [Eastern Europe, Asia, and LA]Lowering operating manufacturing costLeveraging low-cost manufacturing platforms and ITProduce product that appeal to foreign markets

  • CASE QUESTIONCase QuestionOrbitalCLIP 3

  • CASE QUESTIONArcelik has been very active in Western Europe,Do you expect Arceliks prospect to be better in EM & DE than Advanced Economies ?1-In what ways, are EM and DE attractive to Arcelik?-How can firm reap benefits from such market in order to maximize performance?-

  • CASE QUESTION (number 1)Do you expect Arceliks prospect to be better in EM & DE than Advanced Economies ?-Prospect Arcelik in emerging market and developing market than advanced market

    DIMENSIONAdvanced MarketEmerging MarketDeveloping MarketPopulation (% of the word)146224Approximate average per capita income (US dollars; PPP basis)33.75013.2506.450Trade volumeHighLowHigh Education levelHighModerateLowTrade barriersMinimalRapidly liberalizingModerate to highIndustryHighly developedRapidly improvingPoorInward

View more