International Aspirations of an Emerging Market Firm
International Aspirations of an Emerging Market Firm Arcadia, a Turkish appliance manufacturer controlled by Turkeys largest conglomerate company named Crock Group. From the beginning, Recall products more than half of Turkeys appliances, including air conditioners, dishwashers machines, cooking appliances, and refrigerators.
But since trade barriers declined in sass and sass, many competitors such as SSH, Hairier, General Electronic, Whirlpool, and Electrocute were threatening Recalls 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 (Cassavas, Knight, & Rosenberg, 2008, up. 277-278).
Arcadia 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 Arcadia to be a lead player in the industry as its aims. Issues Economic in Singapore. Singapore economic is the first issue that attracts Arcadia to enter Into this emerging market. Singapore GAP shows Gingersnap’s buying power, which also affects Arsenic’s products. Analysis Economic in Singapore. According to Political Risk Yearbook: Singapore Country Report stated; “real GAP growth for the second quarter of 2010 surged to an
Increasable rate of nearly 19%, on top of registering nearly 1 7% 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 world’s leading business centers and a major destination for foreign Investment. The first reason Is monetary stability In Singapore Is good. Second, the legal and regulatory framework for the financial sector is transparent and efficient. The government influence in the sector is gradually being reduced.
Third, anti-corruption laws are strong and well enforced. Moreover, foreign and domestic Investors are treated equally, and openness to global commerce fosters competitiveness. With prudent and sound banking practices, the financial sector has weathered the global financial turbulence relatively well (Miller and Holmes, Para. 3). These should be good enough reasons to attract Arcadia entering Singapore market. Issues Singapore Consumer Lifestyle. The second Issue that Recall need to know before doing business in Singapore Is consumer lifestyle.
In order to know which products appropriate to consumer lifestyle in Singapore, Arcadia should be marketed precisely; ongoing research in Singapore consumer lifestyle will definitely help Arcadia reaching their goal. Analysis Singapore Consumer Lifestyle. According to Global Marketing Information Database (GIMP), point out that Singapore have their busy lifestyle. They spend more time on working, and spending less time in other thing else. As Gingersnaps become busier, the demand for convenience has been on the rise. Thus, the household appliances should sales something that help Singapore save time such as microwaves and freezers.
As Gingersnaps workers have less time for grocery hopping, having a freezer will help them to purchase more food. Likewise, microwaves will be great help to save time in cooking for Singapore busy worker. Moreover, Singapore is very attuned to high-technology lifestyles, and technology- based products and services are extremely popular. On the other hand, over the short-term the economic downturn will drive many consumers to be much more discerning, and they will search hard for the best deals (GIMP, 2011, Para. 1-13). Commercial risks in Singapore.
The last issue that Arcadia need to study carefully is attention risks in Singapore, including country risks or political risks, cross-cultural risks, commercial risks, and currency risks. Although Singapore has lower rate of corruption than other Asian countries and its Singapore Dollar (SAG) is quite strong, there is commercial risks that need to be considered. Analysis Commercial risks in Singapore. Although the Business Monitor International mentioned that the Singapore Dollar (SAG) is safe, there are commercial risks in Singapore.
From Smog’s information, Arcadia may adapt its products, prices, and promotions in order to minimize commercial risks while doing business in Singapore. In addition, there are several competitors who already have niches in Singapore should appliances market share such as, LEG Electronics, Panasonic, Samsung, and Careful. In order to compete with those strong competitors, Arcadia could apply its advantage, which is its knowledge of how to produce products for lower-income countries. “It operates 11 manufacturing plants in Turkey, Romania, Russia and China.
Arcadia is a member of the Koch Group of companies, which holds a majority stake in the company. ” (Denominator, 2010, p. 50). All those manufacturing plants allow Arcadia to produce appliances less expensively than some competitors. The retailers in Singapore are also important to Arcadias business. The main retail chains selling home appliances in Singapore are Harvey Norman, Best Dense, Courts and Gain City. Large department stores such as Tasmania and Siesta also carry a variety of major brands of home appliances.
Conclusion Arcadia should expect to be better in emerging market such as, Singapore because this county offers good opportunity to household appliance businesses. Singapore has strong position in economic and continuously growth in household occupants. Arcadia should be attracted by consumer demand by households. In order to maximize company performance, Arcadia could study Singapore consumer life style and adapts its products to meet Gingersnap’s demands. Reclaim has strong distribution network with close to 4,500 dealers in Turkey and 366 aboard.