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Introduction of Turkish Market

Discuss about the Effort and potential application for the market.

We are living in the era of globalization which changes rapidly and it is a human nature to live with such phenomena. Globalization could be seen as a continuous process which helps the organization or individuals to make new ideas, competition, practices, identities, movements and values. Globalization could lead to different situations which depend on the individual and organization perspective. The topic of entry mode has been discussed through many researchers in their article and they depict that it is significant for the companies to diversify their market so that the profitability of company could enhance and the customer base could also be wider.

The researchers express that there are various ways for a company to enter into the international market and offer its product and services to the foreign clients. This process enhances the goodwill of the company in international market. It has also been analyzed that entry mode of manufacturing company becomes quite easy now days but still, the entry of service companies are less in comparison of manufacturing companies (Brouthers and Hennart, 2007). Entry mode must be investigated properly before entering into a market so that the best decision could be made by the company about the market and entry mode in the market.

This report has been analyzed to investigate over the international market entry mode. It has been found through this report that there are many ways for a company to enter into international market to diversify its market and to enhance its operations as well as sales of the company. In the era of globalization, it becomes mandatory for every company to enhance its operations and diversify its market globally (Tihanyi, Griffith and Russell, 2005).

This report expresses about the entry in Turkish market of other country’s company. In this report every aspect related to Turkish market and entry in Turkish market has been analyzed. Firstly, Turkish market has been studied and found that there are many risks in Turkish market as the country is still trying to become a part of European union and the policies and rules and regulations of turkey is far different from other European countries. It has also been analyzed that company suffers many risk such as terrorist attack and less flexibility in the market.

Further, this report explains the user about the mode of effective entry in international market such as exporting, franchising, licensing, strategic alliances, partnership, acquisition, joint venture, Greenfield venture etc. More, the risk and benefit of every effective entry mode has been analyzed so that the best entry mode could be decided. It has been analyzed that every entry mode is different and have different risk perspective and benefits. International market has become significant. And in case of Turkish market, the country is welcoming the foreign countries from heart to come into the market and explore the Turkish market.

Effective Entry Mode

International markets have different strategy for every business to enter into the international market and give their service or products to the foreign clients. It has been analyzed through this report that companies are isolated due to many factors such as trade barriers, trade distances, culture and time. A company must enter into the international market for advancement of technology, decrease storage cost, decrease transport cost, identification of new segment and less need about customized product as existed companies have almost similar products.

Further, the effective entry mode in Turkish market has been analyzed such as exporting, franchising, licensing, strategic alliances, partnership, acquisition, joint venture, Greenfield venture etc. it has been found that which market mode is suitable in Turkish market and how it would help the international companies to set up their business in turkey and enjoy the growth. It has been analyzed that every entry mode is different and have different risk perspective and benefits. International market has become significant.

At lastly, this study gives a concise explanation about the recommendation given to the international companies to enter into the Turkish market and enhance the business. It explains the international companies that which market mode is suitable in Turkish market and how it would help the international companies to set up their business in turkey and enjoy the growth. Finally, conclusion of the study has been given to make it more clearly to the user about the study and the decisions and recommendation which has been taken whiles this study. The conclusion part expresses the user about the whole report in summary. 

Turkish market has been studied and found that there are many risks in Turkish market as the country is still trying to become a part of European union and the policies and rules and regulations of turkey is far different from other European countries. It has also been analyzed that company suffers many risk such as terrorist attack and less flexibility in the market.

Still many significant are there due to which international companies see an opportunity in the market. Many barriers are also there to hamper entrance into the Turkish market but it could be resolved quickly and with a little bit knowledge about the Turkey conceptual framework, contacts and language assistance. Any strategy of market entry in Turkey should initiate with a careful understanding of the benefits and cost to doing business in Turkish market (Forlani, Parthasarathy and Keaveney, 2008).

An international company must consider their own resources, business experience abroad, long-term business strategy and previous export before entering the Turkish market. For most of the international companies, depiction in Turkey through distributor, liaison office, partner or Turkish agent would be a significant key in terms of success. Even though it’s not required for the local partners that they could offer knowledge and understanding of the regulatory framework in Turkish market, valuable business contacts and language assistance (Dow and Larimo, 2009). With the development of the company, companies could open many subsidiaries and could also make more investments locally to increase their market share and value of the business.

In Turkey, the U.S. Commercial Service has various programs and services offered to help American businesses and other businesses in instituting an existence in this market and managing and developing suitable links. Experienced Staffed with Specialists in commercial services with many years in sector expertise and industry, the Commercial Service team of other countries in Turkey could tailor the business approach for the right audience, and offer recommendation on the business strategy in Turkey (Canabal and White, 2008).

Thus it could be said that with many issues and risk in the market of Turkey still it is the best option to enter and diversify the market by international companies as still many significant are there due to which international companies see an opportunity in the market. Many barriers are also there to hamper entrance into the Turkish market but it could be resolved quickly and with a little bit knowledge about the Turkey conceptual framework, contacts and language assistance. 

Today, in the era of globalization with various opportunities as well as huge competition, it is good for the international companies to enter into new market so that the business could be enhanced. Entry mode in international market or foreign market is basically an arrangement among the institutions which make it possible for the organization to enter into the foreign market with new technology, management, human skills, advancement or other resources (Blomstermo, Deo Sharma and Sallis, 2006). Basically, whenever a company thinks about diversifying its market into foreign market than it is because of economic advantages or some other advantages that could make them more popular among the clients and the share price of the company could also enhance. It is a crucial decision for the companies to decide that whether they should enter into the new market or if yes than what would be the effective mode to enter into the market. It has been found that entry mode get affected with many variables such as environmental variable, strategic variable, transaction variable or other specific variables.

Environmental variable includes the things like variables which are related to location familiarity, country risk, competitive conditions and the demand which exists in the host country market. The planned variables are those which must be adapted by company to enter into the foreign market or enhance the sales of new product. These similarities between the countries and there variables become less important due to the time factor. The transactions variable and other specific variables pressure the firm’s importance in a particular manner and explain the competitive advantage (Rasheed, 2005). Decision about the entry mode implements the current state, stability, access to resources, companies past experiences and target market structure of company. It has been stated that for a service firm, traditional way to enter into a new market is to go behind their manufacturing clients so that with the products services could also be supplied easily which are served into domestic market.

But currently many changes has been occurred into the market and found that there are various other ways for the service firm to enter into new market. The expansion has stimulated onward and that has created service businesses less dependent on local business operations to globalize the company due to new advancement and technologies for electronic trade (Slangen and Van Tulder, 2009). Even, the service sector is known as an imperative part of the international economy, the article paper and researches on service market in international context is quite limited. It has been questioned in these concepts, practices and theories from the strategies of entry mode from a production perspective are appropriate to the service industry. The previous research which has already been done advice that the companies which are involved in service sector is less intensive in terms of capital moderately to companies which are involved in manufacturing business but it also varies in service industry (Cui and Jiang, 2009).

Two major theories are there on international entry mode i.e. internalizations and eclectic theory. These theories have been considered due to their well known aspects and they are best known theory. They also have empirical support. Theory of internalization is the same theory as theory of transaction cost. The internationalization theory is based upon industrial organization. This theory assumes the changes of resources among companies, perfect competition and homogeneous which includes the transferability in a perfect manner of know-how among the partners and the firms (Tihanyi, Griffith and Russell, 2005). The advantage of internalization theory is a contractual risk which controls the overseas partner all the way through foreign direct investment which is more precious than a local firm’s licensing.  Internalization theory has been questioned since it is not suitable to contrast FDI with selling overseas (Dincer, Tatoglu and Glaister, 2006).

The eclectic theory has been developed because of inadequacy in the theory of internationalization which focuses on ownership, location and advantages over internalization. The advantage of ownership refers to assisting the overseas firm to defeat the weakness of opposition against local companies. The country risk and market potential which makes it advantageous to perform business in foreign market. (Aydin and Acikmese, 2007). In addition this is not good since it do not be familiar with planned deliberation like capability improvement. Except this theory also does not elucidate that why 2 companies with similar possession, location advantages and internalization might not decide the same mode of entry (Brouthers, Brouthers and Werner, 2008). This theory which is based upon recourses explains the industry and the firm as competitive advantages sources (Kiri?çi, 2009). This theory recognizes the information that the wherewithal are heterogeneous across industry and firms and it is affected imperfectly due to mobility.

Many articles and studies about foreign entry modes which are already existed has been studied and identified that several variables are there that could have a consequence on the choice on which entry mode to decide (Tsarouhas, 2009). Entry modes could be distinguished by control level, commitment level, resource level and risk involvement level. The control is the particular and most important factor which decides both returns and risk of the presentation of investment globally and the frictions amount in the sellers and buyers relationship (Brouthers and Hennart, 2007). They describe control as the ability of firm to pressure the various administration systems the association have if they could make a control over this than they would have the aptitude to develop their competitive situation and exploit returns on assets of the firm (Koc and Altinay, 2007).

The subsidiaries which are wholly owned have a good control level which is the highest whereas the lowest control level is owned by licensing. Commitment of resources is explained as fallowed. It consist the attachment of assets for particular use which is either difficult or fixed to change without implementing large costs. It has been said that service perspective control means that timely supply of goods and quality service and goods to international clients (Çetin and Oguz, 2007). Companies that desire to go into a new market have a range of entry modes. They could be alienated in to 3 groups.

The 1st part is entering into new markets throughout the modes of export and that consist of direct and indirect sending abroad, direct branch subsidiary, direct agent/distribution and other channels (Dow, and Larimo, 2009). The 2nd part is contractual entry modes which includes technical agreements, service contracts, licensing, construction/turnkey contracts, franchising, management contracts, co-production contracts and other. The 3rd part is investment entry mode which includes sole venture: new establishment, acquisition, joint venture: new establishment/acquisition (Cui and Jiang, 2009). 

Exporting is a common term which is used when an individual talks about selling the goods and services in overseas market. Export is one of the most common and easy options to enter into new market. It has been stated that export modes concludes indirect entry, direct branch subsidiary, direct agent/distribution and other. Bradley (2005) has spoken in general terms about exporting as it is the quickest method and also it is the easiest method of entering into a new foreign market. Initially this approach has been used to increase knowledge and understanding of new market when a corporation decides about the entry mode than they also choose the level of commitment, resources and risk involvement so that the proper and strategic planning could be done (Morschett, Schramm-Klein and Swoboda, 2010).

It has been said that a low assurance of Low investment and resources choice takes place in exporting. Exporting has the disadvantages such as little control over firm and low profit return (Bu?ra and Keyder, 2006). After entering into new market and gaining the knowledge and understanding about the needs of host country, companies could try to boost their presents through applying the new strategy and planning (Termin, 2013). Exporting could be a part of gamut to enhance the commitment to internationalization.

Direct exporting happens when the goods are sold by producer directly to the buyer or importer situated in an overseas country. In this type of entry form, very modest or no information about the overseas market is desirable from the producer’s point of view. Three advantages are there of this entry form, the first one is partially or completely control over the overseas market sketch, the second one is marketing effort consideration on the producer’s product line (Cizre and Yeldan, 2005). Third advantages of this entrying mode are quicker feedbacks, knowledge from the target market which could help the clients to adapt the product of the company faster. The last advantage of direct exporting is better fortification of patents, trademarks, goodwill and other insubstantial property (Aydin and Özer, 2005). One obligation for this entrance form is that the exporter wants to discover the process and credentials of export consignments and the worldwide payments planning for being able to use this mode.

This mode is directly connected to the many direct agent/distribution, entry strategies and direct branch subsidiary. Direct subsidiary of branch needs an equity venture in the institutions of marketing which are located in the host country. Because this entry mode means that the manufacturer has it’s possess in marketing units which operates in new country. Further, it also explains this process but under diverse names, as overseas branch of sales (Blomstermo, Deo Sharma and Sallis, 2006). Direct agent or distribution exporting is explained as when the person as mediator in the overseas country manages all the marketing strategies and planning for the producer.

Licensing has described as an intangible asset which could be transferred. Licensing is not a subject of import boundaries. This method is used when a company offers its licensing to others companies to use in a foreign market with advancement and technology that they want, for a royalty or fee (Nielsen and Nielsen, 2011). This licensing from contains one brand name or an arrangement of access to a patents, brand name, manufacturing process technology, operations expertise and trade secrets. A firm who gets able to use the license and becomes licensing partners could gain admittance in an overseas market with very little investment cost and it also obtains the information and market knowledge from institutes and experienced local firm. This licensing mode of entry in overseas market is positive when the preferred market has limited FDI and import. There are two methods of licensing agreements which are a future technology license and current technology license. The main differences between these two methods are that in the future technology license, current and future technology advancements are considered whereas in current technology advancement, only current technology could be considered.  

Contract manufacturing is also a way to enter into a new market. This entry mode is basically a cross among the investments and licensing entry mode. A company makes a contract with another firm which is situated in foreign market to manufacture or assemble the products although still they have the accountability for distribution and marketing of the goods (López-Duarte and Vidal-Suárez, 2010). This mode of entry into a foreign market needs the investment of talent, time and cash. It also offers quick entry into the foreign market. Conversely, it also has prospective as frightening problems like: preparation for the possible competitor which have entrée to know-how and offers the high quality products to the clients, additionally, over the earnings from the production house is transport to the contractor (Hortaçsu and McAdams, 2010).

There is another method to enter into the foreign market is with the help of a strategic alliance with host country’s firm. Strategic alliance contains an agreement which bases upon many contracts between two or more companies instructing that the concerned parties would assist in a convinced way for a definite time to accomplish a common target. To decide if the association approach is appropriate for the company, the company must choose that what significance the associate could carry to the business enterprise in conditions of both tangible aspects and intangible aspects (Andiç, Yurt and Baltac?o?lu, 2012).

The partnering advantages with a local company are that the company in host country possibly understands the methods of doing business, market and local culture in a better way. Especially, partners are important if they have a reputable, recognized brand name in the host country or have great existing associations with clientele that the company might need to admittance such as XYZ Company has formed a planned alliance with ABC to expand businesses in Turkish market. In the association, a company could decide to co-brand with the company in host country’s name so that it can leverage company’s reputation in host country for the products and services (Sanchez-Peinado and Pla-Barber, 2006). Xerox has launched policies of strategic alliances to enhance the sales in budding markets such as Europe, Brazil and India.

This mode of entry into foreign market is also beneficial for small commercial companies that might be too little to create the desirable investments for entering into foreign market (Epstein, 2005). Further, some countries are required to make the partner to a local company if they need to enter into the foreign market such as in Saudi Arabia, other foreign companies are needed to make strategic alliances with a local firm according to Saudi Arabia’s law. This obligation is ordinary in Eastern countries (middle). Even exclusive of this regulation, a local company or partner always helps overseas companies in bridging the dissimilarities that or else doing the business in foreign country is impossible. For example, Walmart has failed many times around a decade to successfully develop its business operations in Mexico till the time it established a strong partner locally with related business standards (Hortaçsu and McAdams, 2010).

On the other hand, the disadvantages of partnering are direct control lack and the prospect that the goals of partner would differ from the company’s goal. It has described that in the case of US Company, they are eager to step into the Indian market: they said that this would quickly negotiated regulations and terms and would complete the arrangements with the help of local partners, Certain documents which are required while stepping into foreign market, however, like industrial license, capital issues permit, foreign collaboration agreements, machinery and equipment imported licenses etc. Trying to accelerate the approval of governmental about these items, the US Company has agreed to recognize a lesser royalty fee than initially predetermined. After all of it, the project of us coampnies has not been expedited greatly and the royalty fee has been reduced lower from the firm’s profit by roughly half a million dollars for life time agreement (Görür et al, 2011).

For avoiding these issues, company could shape one internationally incorporated team to supervise its coalitions in rising markets. Having devoted players permits company to invest in development and training of the managers that how they could manage the multifaceted relationships which is involved in coalition (Brouthers and Hennart, 2007). The team goes behind a reliable model by sharing and using the best practices for association’s benefits.

Joint venture is another method to enter into a new market to achieve the goal of the business. It is a strategic partnership, contractual among many separated business organizations to follow an operational chance together. The associates in an organization joint venture have to contribute resources and capital in swap over for an equity venture and allocate in any consequential profits. In the case of nonentity joint venture, equity holders need not to contribution the resources and capital to figure a new entity.)

For seeing that how an equity joint venture works, example of Egyptian company is the best. It expresses that joint venture in a better manner.  It has been founded that his company of jam has taken the advantages of excess fruit products of Egypt’s. It has been initially approached that a jam company of French, Vitrac, wanted to enter into a contract of joint venture with a new founded company, Vitrac Egypt. The Egyptian has been supplied the fruit in the markets while the another company of French has supplied the know-how and advanced technology for manufacturing jams.

Further, it has been analyzed that exporting to the United States, Australia and in the Middle East, the French company, Vitrac has began to exporting its products to Japan. Japan sales results of Japan expresses that there is a huge demand of blueberry jam. For meeting the demand of Jam customer in the country, company has come up with an interesting entwine. Company used the advance technique to meet all the demand of the customer. Company started importing blueberries from Canada. Thus, the company, Vitrac was importing the blueberries from Canada, company was producing the jam from blueberries in Egypt, and finally it exported it to Japan (Morschett Schramm-Klein and Swoboda, 2010).

By using the manufacturing known how of French company, Abdel Nour, the Egyptian company had initiated an new opportunity and supply chain to step into new foreign markets with it, so that the reach of the company could enhance and it would directly make an impact over the sales of the company. The contract and partnership fit was quite good among both Egyptian and French company. The joint venture of both companies has continued for three years and then the company situated at French had sold its shares to other company, Abdel Nour, and the Egyptian company, Vitrac made a company with 100 percent shares and operated only in Egypt (Sakarya, Eckman and Hyllegard, 2007). The French company, Abdel Nour’s, has reached to $22 million in terms of sales and it was the leader in jam market industry in Egypt before it was bought by Swiss company.

Joint ventures possess both risks and benefits for the organizations which are involved. The main step of joint venture is to find out the best and the right partner for venture ship. The partnership must not only be good according to the business terms but it must also be good according to the management practices and cultural perspective (Güler and Alpaslan, 2009). 

Secondly, the partner from host country may increase the technology and know-how perspective for producing their own competitive services or goods to compete with the multinational companies. Currently, the same is happing in china market. For manufacturing the cars in China, other companies from foreign countries should come into a contract of joint ventures with automakers of china so that the technology could be shared with the other company (Demirbag, Tatoglu and Glaister, 2008). Once the contract finishes, nevertheless, the company from host country might use the knowledge which has been gained from the partner company to compete with its competitors.

Acquisition is a transaction basically in which a firm takes a control over another firm by buying its stock or exchanging its own stock by their stock, or, in private firm case, by paying purchase price amount to the owner. In our progressively smoother world, cross-border acquirements have risen radically (Akman and Yilmaz, 2008). In current time, cross-border acquirements have made up over 60% of all acquirements has completed worldwide. Acquisitions are attractive because they provide the corporation quick and established admittance to a latest market. Though, they are luxurious, so only the big companies give a thought about the acquisitions. In the recent year, the strength of the company has been changed and this directly impacted over the business of the country. High interest rate in the still developing countries has enhanced the currency of the country in relations with euro and dollars (Gökgöz and Atmaca, 2012). It has been found if a company from strong country signs an acquisition agreement with less strong country than the acquisition become cheaper. It has been said that the main reason behind failing the merger is lot of money as premium amount. But if a country’s currency is strong than it could be able to bargain. (Çetin and Oguz, 2007).

While a firm chooses that whether the acquisition entry mode must be opted or not than firm is needed to analyze the strategy, laws and other regulations in the host country such as China has many boundaries on foreign possession though even the United States, a developed-world country has laws which addresses acquisitions (Aydin and Özer, 2005).

It is a good mode to enter into foreign market. Acquisition offers a good entry strategy which could be used when scale is required that is a special case in many industries such as wireless telecommunications. It also helps a company when entire industry is consolidating. However, acquisitions are quite risky. By analyzing many research paper and articles, it has been found that between 40 60 percent of entire acquisitions not succeed to enlarge the acquired company’s market value by more than invested amount (Canabal and White, 2008).

Sometimes companies might want to have a direct presence and operate directly in the foreign market so the companies could choose this option. Greenfield venture is also known as own subsidiary venture. For achieving the goal of not entering into the foreign market directly, company could even establish a new, totally owned subsidiary or company also have an option to buy the already existing company in foreign market to be in that market. Many companies found it easy to purchase their early partners or early partners for being into the foreign market as VitracEgypt, the joint venture of French and Egyptian company has done. Other companies might buy a local supplier or company for making a direct control over the supply. It is the type of vertical integration (Sakarya, Eckman and Hyllegard, 2007).

It requires the highest commitment for establishing or buying an owned subsidiary totally as a part of the international company, because the company could assume entire risks such as financial risk, currency risk, economic risk, and political risk (Demirbag, McGuinness and Altay, 2010).

It has been found that few companies select to buy an already presented company in the host country absolute as a method to acquire into an overseas market rapidly. While making an acquisition contract, the main importance is of due diligence. It does not only impact over the financial side but it also makes an impact over the country’s culture side and business practices of the host country (Çetin and Oguz, 2007) It has been found that currently the Russia’s annual disposable income has been exceeded than other BRIC countries which are Brazil, India, and China. Russia is too big for many major companies and thus they ignore this country as a market. Though, this country also has a character of red tape and corruption by even its officers with high ranks. An economic advisor Mr. Arkady Dvorkovich  suggested that investors must choose the entry mode and country wisely as which area of host country would be targeted first and which area or stsate of the country is not good for the business. Corruption of the country must also be analyzed as it makes less flat to the world because it weaken the feasibility of lawful vehicles, like licensing (Chen, 2008).

It has been found that culture is worst element of a country and before entering into the market and buying nay company of the country, Guest Company must analyze the aspects of the company thoroughly. This would help the company to reduce the cost and time and it would also help the company to choose the best country to enter and diversify the market.

Taxes of the company are also important factor which must be considered by the company before buying the companies in that country. This would help the company to reduce the cost and time and it would also help the company to choose the best country to enter and diversify the market (Puck, Holtbrügge and Mohr, 2009). If a business get able to reduce the extra and higher tax rates then it would be quite easy for the country to enter and diversify the market into host country.

But this further analyzes and short cuts to reduce the cost and save the company from taxes could impact badly over the shareholder of the company and a negative message would be delivered in the market about the company.        

As discussed earlier, that there are many risks in Turkish market as the country is still trying to become a part of European union and the policies and rules and regulations of turkey is far different from other European countries. It has also been analyzed that company suffers many risk such as terrorist attack and less flexibility in the market (Andiç, Yurt, and Baltac?o?lu, 2012).

Even still many noteworthy are there due to which international companies see an opportunity in the Turkish market. They also found many barriers in the Turkish market to hamper the entrance into the Turkish market but it could be resolved quickly and with a little bit knowledge about the Turkey conceptual framework, contacts and language assistance. Any strategy of market entry in Turkey should initiate with a careful understanding of the benefits and cost to doing business in Turkish market (Demirbag, Tatoglu and Glaister, 2007).

An international company must consider their own resources, business experience abroad, long-term business strategy and previous export before entering the Turkish market. For most of the international companies, depiction in Turkey through distributor, liaison office, partner or Turkish agent would be a significant key in terms of success. Even though it’s not required for the local partners that they could offer knowledge and understanding of the regulatory framework in Turkish market, valuable business contacts and language assistance (López-Duarte and Vidal-Suárez, 2010). With the development of the company, companies could open many subsidiaries and could also make more investments locally to increase their market share and value of the business.

In Turkey, the U.S. Commercial Service has various programs and services offered to help American businesses and other businesses in instituting an existence in this market and managing and developing suitable links (Ozorhon, Dikmen and Birgonul, 2006). Experienced Staffed with Specialists in commercial services with many years in sector expertise and industry, the Commercial Service team of other countries in Turkey could tailor the business approach for the right audience, and offer recommendation on the business strategy in Turkey (Petrou, 2009).

Further, in summary it could be said that when a company decides that which mode of entry must be opted than companies do analyze over the following two key questions:

Firstly, how much resources of company, company is ready to commit with new market? For it, it has been found that it is better for the company to devote less resources as  the fewer the resources such as expertise, money and time would be, the easier and better it would be for the company to enter into an overseas market with a contractual basis with the help of management contracts, licensing, franchising, acquisitions, joint venture, Greenfield venture or turnkey projects (Demirbag, Tatoglu and Glaister, 2009).

Secondly, company must analyze that how much control does the company need to make it with itself? If a company wants more control over the overseas business than it is better for the company to switch the idea of establishing by the idea of purchasing a wholly owned subsidiary or use the mode of  joint venture with cautiously described responsibilities and accountabilities among the partner companies.

In spite of the entry strategy a company pot to enter into the Turkish market, numerous factors are quite significant. These are as follows:

Cultural and linguistic differences:

Culture and linguistic differences expresses that cultural differences and linguistic differences among the partners and companies affect entire associations and communications within the business, with the government, and with the customers. It is critical to understand the local culture of companies to get success.

Quality and training of employees and local contractors:

Quality and training of employees and local contractors express that it is important for a company to evaluate the skill sets and capabilities of their labor so that no issues regarding the skills could be faced by the company and then company must determine that whether local staff is enough competent to get success (Tsang, 2005).

Political and economic issues:

Political and economic issues play an important role while choosing the best way for entering into the Turkish market. Policy could be changed regularly and it is needed by the company to decide that how much investment they’re eager to formulate, how much earnings of theirs could be repatriated and what factors are required to make this investment (Anil, I., Tatoglu and Ozkasap, 2014).

Experience of partner’s company:

Experience of the partner company is quite significant for the company to choose the best entry method to get into the Turkish market. Analyzing over the understanding and skills and experience of the partner company in Turkish market with the knowledge about dealing with the clients, production etc are investigated deeply to make a decision about entry mode.

  • Company must investigate over the Turkish market carefully and must identify the culture and practices if the country.
  • Company must understand the exclusive industry and their working style and must maintain regulatory relationships with other companies and industry in the Turkish market.
  • Company must take the help of internet to analyze and communicate with suitable overseas trade corporations in Turkish market or with the embassy of the turkey. Each embassy decides different rules and regulations for trading and commercial counter. Such as the turkey government has US Embassy which assists the US companies on dealing and helps them to enter into the market by providing them training and other facilities (Anil, Tatoglu and Ozkasap, 2014).

These possessions are finest for smaller organizations. Larger organizations with more resources and money usually appoint top experts to do the above research for them and help them to set up their business in Turkish market. Big companies are also capable to maintain a large size group to do the above task for them and analyze the efficiency report for them (Ellis, 2008).

If a company decides to enter into the Turkish market than company is required to analyze the following topics and on the basis of that company could decide that which entry mode is perfect for the company to step into the Turkish market:

Exporting

Licensing and Franchising

Contract Manufacturing

Partnership and Strategic alliances

Joint Venture

Greenfield venture

Company Goals

In the entry mode of exporting in the Turkish market, the main goal of a company is to expand the market in overseas market too indirectly with fewer resources.

In the entry mode of licensing and franchising in the Turkish market, the main goal of a company is to expand the market in overseas market indirectly by providing some legal rights to another party.

In the entry mode of contract manufacturing in the Turkish market, the main goal of a company is to expand the market in overseas market by manufacturing the products in the overseas market.

In the entry mode of strategic alliances in the Turkish market, the main goal of a company is to expand the market in overseas market by make a strategic partnership in the host company.

In the entry mode of joint venture in the Turkish market, the main goal of a company is to expand the market in overseas market by making a contract with a host country’s company to directly enter into the market.  

In the entry mode of Greenfield venture in the Turkish market, the main goal of a company is to expand the market in overseas market directly by buying a company in the host market.

Resources

In this entry mode in the Turkish market, the resources of the company are quite low. Such as company need not to spent huge money, time and talent for entering into an overseas market.

In this entry mode in the Turkish market, the resources of the company are little high then exporting. Such as company need not to spent huge money but the time and talent for entering into an overseas market is quite high.

In this entry mode in the Turkish market, the resources of the company are high. Such as company need to spent huge money, time, technology, knowhow and talent for entering into an overseas market.

In this entry mode in the Turkish market, the resources of the company are quite low. Such as company need not to spent huge money, time and talent for entering into an overseas market but the technology and knowhow of the company must be good.

In this entry mode in the Turkish market, the resources of the company are little high. Such as company need to spent huge money, time, spent over technology and talent for entering into an overseas market.

In this entry mode in the Turkish market, the resources of the company are high. Such as company need to spent huge money, time and talent for buying the company in the host company for entering into an overseas market.

Size of the company

In this entry mode in the Turkish market, size of the company could be low, medium or high.

In this entry mode in the Turkish market, size of the company could be medium or high.

In this entry mode in the Turkish market, size of the company must be high.

In this entry mode in the Turkish market, size of the company could be medium or high.

In this entry mode in the Turkish market, size of the company could be low, medium or high.

In this entry mode in the Turkish market, size of the company must be high.

Competition

In this entry mode in the Turkish market, huge competition is there as all size of companies could enter into the overseas market through this mode.

In this entry mode in the Turkish market, huge competition is there as all size of companies could enter into the overseas market through this mode.

In this entry mode in the Turkish market, medium competition is there as all size of companies could not enter into the overseas market through this mode.

In this entry mode in the Turkish market, low competition is there as all size of companies could not enter into the overseas market through this mode.

In this entry mode in the Turkish market, medium competition is there as all size of companies could not enter into the overseas market through this mode.

In this entry mode in the Turkish market, low competition is there as all size of companies could not enter into the overseas market through this mode.

Remittance

In this entry mode, company need not to pay huge amount as remittance.

In this entry mode, company need to pay little amount as remittance.

In this entry mode, company need to pay huge amount as remittance.

In this entry mode, company need to pay huge amount as remittance.

In this entry mode, company need to pay great amount as remittance.

In this entry mode, company need to pay huge amount as remittance.

Product

In this entry mode, any product which is permeable by government of the country could be exported.

In this entry mode, any product such as FMCG products could be franchised.

In this entry mode, any product which is in manufacturing state could be counted.

In this entry mode, any product which is permeable by government of the country could be counted.

In this entry mode, any product which is permeable by government of the country could be counted.

In this entry mode, any product which is permeable by government of the country could be counted.

Middleman Characteristics

In this entry mode, middleman is required and it could be any person, company or government.

In this entry mode, middleman is not required; companies could directly cut a deal.

In this entry mode, middleman is not required as the host company and guest company themselves make a contract and do the work accordingly.

In this entry mode, middleman is not required as companies make a contract of direct partnership.

In this entry mode, middleman is not required as companies themselves accomplish the work.

In this entry mode, middleman is not required as guest company owns a company in host country.

Number of markets

In the Turkish market, there is huge number of markets for the guest company to enter and grab the customers. 

In the Turkish market, there is huge number of markets for the guest company to enter and grab the customers. 

In the Turkish market, there is less number of markets for contact manufacturing as some restrictions are there. 

In the Turkish market, there is less number of markets for partnership and strategic alliances as the government regulations are quite high.

In the Turkish market, there is huge number of markets for the joint ventures to enter and grab the customers. 

In the Turkish market, there is huge number of markets for the guest company to enter and grab the customers through Greenfield venture. 

Market Feedback

In this entry mode in Turkish market, the feedback of the customers and the country is quite positive.

In this entry mode in Turkish market, the feedback of the customers and the country is quite positive.

In this entry mode in Turkish market, the feedback of the customers and the country is positive and negative both.

In this entry mode in Turkish market, the feedback of the customers and the country is not enough positive.

In this entry mode in Turkish market, the feedback of the customers and the country is negative.

In this entry mode in Turkish market, the feedback of the customers and the country is negative.

Environmental characteristic

In this entry mode in Turkish market, the environmental characteristics of the country are beneficial for the company.

In this entry mode in Turkish market, the environmental characteristics of the country are enough beneficial for the company.

In this entry mode in Turkish market, the environmental characteristics of the country are not beneficial for the company.

In this entry mode in Turkish market, the environmental characteristics of the country are not beneficial for the company.

In this entry mode in Turkish market, the environmental characteristics of the country are not advantageous for the company.

In this entry mode in Turkish market, the environmental characteristics of the country are not helpful for the company.

Control

In this entry mode in Turkish market, the control of the international company is quite low.

In this entry mode in Turkish market, the control of the international company is quite low.

In this entry mode in Turkish market, the control of the international company is little high.

In this entry mode in Turkish market, the control of the international company and host company are 50-50.

In this entry mode in Turkish market, the control of the international company and host company is 50-50.

In this entry mode in Turkish market, the control of the international company is high.

Marketing cost

In this entry mode in Turkish market, the marketing cost is quite lower.

In this entry mode in Turkish market, the marketing cost is quite lower.

In this entry mode in Turkish market, the marketing cost is low.

In this entry mode in Turkish market, the marketing cost is quite high.

In this entry mode in Turkish market, the marketing cost is quite high.

In this entry mode in Turkish market, the marketing cost is quite higher.

International Market Learning

In this entry mode in Turkish market, the market learning is not high as this is an indirect mode.

In this entry mode in Turkish market, the market learning is not high as this is an indirect mode.

In this entry mode in Turkish market, the market learning is high as company gets a chance to learn about their culture and their techniques.

In this entry mode in Turkish market, the market learning is high as company gets a chance to learn about their culture and their techniques.

In this entry mode in Turkish market, the market learning is high as company gets a chance to learn about their culture and their techniques.

In this entry mode in Turkish market, the market learning is high as company gets a chance to learn about their culture and their techniques.

Profits

Profit is quite low.

Profit is quite low.

Profit is quite high.

Profit is quite high.

Profit is quite high.

Profit is quite higher.

Investment

Investment is quite low.

Investment is quite low.

Investment is quite high (Demirbag, and Tatoglu, 2008).

Investment is quite high.

Investment is high.

Investment is higher.

Flexibility

The level of flexibility is quite high.

The level of flexibility is quite high.

The level of flexibility is low.

The level of flexibility is quite low.

The level of flexibility is high.

The level of flexibility is lower.

Foreign Problems

Less foreign problems.

Less foreign problems.

Fewer foreign problems.

More foreign problems.

More foreign problems.

Quite more foreign problems.

Risk

Less risk.

Less risk.

Less risk.

High risk.

High risk.

High risk.

(Al-Kaabi, Demirbag and Tatoglu, 2010)

It has been analyzed through studying over the Turkish market that coca cola plc has also faced many issues while entering into the Turkish market. Company has came up in Turkish market through the contract manufacturing entry mode. And it has been analyzed that this entering mode has been proved the best entry method as due to it, the market of the company has enhanced and company had not to face many political and government issues due to it. The contract manufacturing is a cross among the investments and licensing entry mode. Coca cola has made a contract with another firm which is situated in turkey market to manufacture or assemble the products although still they have the accountability for distribution and marketing of the goods (López-Duarte and Vidal-Suárez, 2010). This mode of entry into a foreign market needs the investment of talent, time and cash. It also offers quick entry into the foreign market. Conversely, it also has prospective as frightening problems like: preparation for the possible competitor which has entrée to know-how and offers the high quality products to the clients, additionally, over the earnings from the production house is transport to the contractor.

Recommendation and Conclusion:

Exporting is a trade in which offering the services and sales of products are done by the organizations in global countries that are made or sourced by the businesses in the home country. At the same time, importing expresses about buying services and products from overseas sources and brings them again into the home nation.

Businesses export the goods and the services from international market because it is one of the easiest ways to contribute in universal trade, it’s less costly speculation than the other entrance strategies, and it is much simple for the businesses to simply stop exporting than it is to disentangle oneself from the various other entry modes. The reimbursement of exporting contains access to new marketplaces and incomes as well as few manufacturing expenses because of higher production volumes.

Contractual forms of entry (i.e., licensing and franchising) have lower up-front costs than investment modes do. It’s also easier for the company to extricate itself from the situation if the results aren’t favorable. On the other hand, investment modes (joint ventures and wholly owned subsidiaries) may bring the company higher returns and a deeper knowledge of the country.

Businesses make an agreement of contract production because this entry mode provides them a manner to contribute in international trade, it’s an expensive investment rather than various other entry policies and strategies and further, it is much simple for the business to use this entry mode to enter in Turkish market directly. It is to rescue one methods from the other entry policies and modes. The benefits of contract manufacturing include admittance to new markets and revenues with low flexibility and higher profits.

The form of the entry mode is partnership and strategic alliances. This mode has high costs than other entry modes. It’s an easiest method for the company to directly enter into the Turkish market and extract itself from the situation where the results are not in the favor of the company. The benefits of partnership and strategic alliances include admittance to new markets and revenues with low flexibility and law interaction of middleman.

Companies make a contract of joint venture because it’s the safest way to participate in global trade, its little costly investment than the other entry strategies, this entry mode has huge risks and benefits too. The benefits of joint venture include access to new markets and revenues as well as with less marketing cost and high flexibility. Although some risk situated with this entry mode is high risk and marketing cost.

Companies make a contract of Greenfield venture because it’s the safest way to participate in global trade, its huge costly investment than the other entry strategies, this entry mode has huge risks and benefits too. The benefits of Greenfield venture include access to new markets and revenues. Although some risk situated with this entry mode is high risk, less flexibility and high marketing cost.

Thus through this analysis it is suggested to the companies who wants to enter into the Turkish market to analyze every entry mode according to their Company Goals, Resources, Size of the company, Competition, Remittance, Product, Middleman Characteristics, Number of markets, Market Feedback, Environmental characteristic, Control, Marketing cost, International Market Learning, Profits, Investment, Flexibility, Foreign Problems, Risk etc.

   Though this companies could easily analysis that which entry mode is best for them to analyze and enter into the Turkey market. It has also been analyzed through this report that every entry mode is different with each other and offers the different benefits and risk to the customers. Thus a company must analyze the mode and then take the decision about entry mode to enter into the Turkish market.

Thus it could be said that this report would help the companies on a huge level to choose the mode to enter into the Turkish market and enjoy the benefits of Turkish markets. It has also been found that the best entering method to enter into the market is contract manufacturing as this method also helped the coca cola plc and many other companies to enhance the market in Turkish market. Thus it could be concluded that contract manufacturing is the best entering method to step into the Turkish market and achieve the goal.

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