Internal And External Environment Of Arcelik

The following SWOT analysis will allow us a in depth look at the companies Strengths, Weakness, Opportunities and Threats. It will allow us to have a better understanding of both the European and International aspect of the brand.

The internationalisation process of the firm has been a subject, which has been motive of study for a number of

Exporting has become a very important business strategy nowadays. In order for firms to expand to the international market, and also to maintain and grow their share of market in whatever industry they are in, depending on their goals and objectives, any company must at least explore this possibility. A few and important advantages might come into place, in that they can extend their sales potential of their existing products, increasing margins through a larger customer base. Also, these small to large businesses can consolidate by gaining global share of market, they can reduce their dependence on their existing markets,

Stages of company Internationalization (Uppsala Model) 1. International Marketing – Ethnocentric Orientation 2. Multinational Marketing – Poly centric Orientation 3. Global marketing – Geocentric Orientation 4. Transnational Marketing – Glocal

In recent decades, internationalization has been more and more common in over the world. This is a great opportunity and challenge that many businesses can earn a lots new experiences and practice themselves when they work in a new environment. Also, internationalization is a good way for companies expand their power and reputation. So these companies or organizations might improve themselves with new knowledge which they learn from foreign countries in order to gain more profits and benefits.

Considering the conducted research and analysis, it can be clearly seen that the international strategy is not effective, that is why, needs to be fixed. Moreover, the company has a success in the local market, so it may be reasonable to put the efforts to promote inside the country.

When starting an internationalization process, companies must take into account that they will have to adapt their products and marketing process in order to get the attention of customers in the new market.

There are various companies which try to reach and set up in the international market. Certain establishments find success while other prove unsuccessful. Some enterprises own the ability to open anywhere, nonetheless there holds circumstances in which need further discussions into their overall strategic plan. Also, lots of challenges and options generated through starting a new business abroad will present itself.

When a company is creating a global marketing plan, it is important for that company to use tools in order to learn more about the global industry and to learn about the political, environmental, sociocultural, and technological environments that are included with the country’s market. The two tools that I feel are very important for a company to use are Porter’s Five Forces Analysis Tool and the SWOT analysis tool. Both of these tools are very important when it comes to finding out more in depth information about a market and an industry. These are two tools that we will want to look at when looking to move into the global market.

The global marketplace is an excellent and exciting and high paced. It offers businesses and companies with a broader client base, and it means that there has to be an application for all the relevant strategies intended to bring business growth. It also offers these organizations the chance to create variation to their goods or rather products most likely unheard of/not familiar only operating in America or their domestic countries (Siegert, 2011). The objective of this report is utilizing the SWOT analysis to determine quickly the international markets that Kraft Foods need to enter and venture and also ways of developing strategies for the new products. One of the most influential and powerful weapons of a corporation has in the globe to get into global markets in their respective reputation. Apparently, money and healthy products are the additional weapons. SWOT analysis entails the examination and assessment of both internal and external factors which include the (opportunities and the threats) such as the business strengths and weaknesses that may impact an organization. Having the ability to determine the SWOT analysis offers a corporation with the potential and power to determine its strategic plan. It is important for a business to ensure that they fully maximize their high points and opportunities and reduce its weaknesses and threats to be able to position itself ahead of the strategic team.

The ability of firms to secure their market position is considered as vital for their survival. In practice, it has been proved that firms that have faced severe challenges have managed to recover using appropriately customized strategic options. The potentials of small Japanese firm, Elecdyne a small size firm that operates in the electronics industry in Japan to stabilize its performance through internationalization is explored in this paper. Three countries have been reviewed as of their appropriateness to support the firm’s specific initiative: USA, China and Australia. At the same time, a SWOT analysis and a PEST analysis have been employed for revealing the potentials of the organization to improve its performance

Uppsala model was developed by Swedish researchers in late 70's by Johanson & Wiedersheim-paul and Johanson & Vahlne. They argued and critize the existing theories of those times which dealt with internationalization of companies. They developed this model of internationalization which focuses on an individual firm, its particular acquisitions, integration and using knowledge of the foreign markets and its operations. The existing theories of those times only induces the model to eliminate cultural barriers while going international but no foundation was led to formulate the handling of internal activities of the companies when they go international. Following their argument, they came-up with their own model which was more independent and explained the procedure of internationalization of a company. The model was developed on the empirical study of four different manufactures and their work (Johanson & Vahlne, 1977).

Porter’s Five Forces are the following: Potential entrants with their threat of entry; Buyers with bargaining; Suppliers with their bargaining power; Threats of substitutes and Rivalry. I will describe the Five Forces and how they are helpful in the international area. I will also discuss their current applications and conclude with the limitations that this model has.

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

In 1977 Swedish researchers at Uppsala University came up with a model/theory how businesses should grow their activities in foreign market, this model explains that companies should select an entry mode by taking into consideration their own resources and exploring costs, and risks based on market nature. (Johanson and Vahnle, 2009) Researchers at Uppsala University in their empirical study found that Swedish firms mostly started their process of internationalization by exporting, initially companies had agents that represented them in foreign market, but these firms exported in countries that had little differentiation in culture, language and political systems from their home country, this was labeled in their model as physically close countries. Uppsala Model considers two types of knowledge objective and experience based knowledge, the model describes that after first entrance in foreign market businesses understands how to work in external country, and later they step by step increase level of internationalization to physically distant countries. (Johanson and Vahnle, 2009) But, can Uppsala model be applied to services? This model was mainly reliable for manufacturing industries; a paper with contrary arguments was published in 2008, providing two variables; environment-related and service specific, to question whether Uppsala model can be used for service