Venturing Into the Turkey Market Legal Aspects

TURKEY MARKET 4

Your Name

Within the Holm Electricals Corp. (HEC) 2015/2016, there is a plan toexpand the market for electrical goods into the Turkish market byDecember 2015. This is listed as one of the strategies of the companyfor hitting the 10 billion mark in the 2016 first quarterly financialreport. Before any resources can be channeled towards the newinvestment, a proper study of the Turkish market especially theregulations and standards governing imports. This is a strategicreport on Turkish import regulations and standards as required bymanagement for decision making. The recommendations for the bestcourses of action were formulated after carefully evaluating thestandards and regulations that cover the importation of electricalgoods into the target market, Turkey.

Turkey has about 15,563 standards, with around 1,116 as compulsorystandards. The compulsory standards cover goods like foodstuffs,electric goods, medical equipment and many more. In order to importsuch goods, the companies and individual importers must obtain theTSE approval on the importation of the goods that are under theobligatory standards coverage. Turkey also offers a compatibleTS-EN-ISO 9000 as a mark of quality, which would be great for thecompany to stay competitive (Tatoglu, 2000). The TurkishTelecommunications Regulatory Authority must also approve theimportation of electrical apparatus used in line telephony ortelegraphy, and the machines for answering telephones.

Additionally, goods that need after sale services like electricalgoods including TV and video equipment, computers, radios, wirelessequipment, and other household electrical goods need to obtain animport permit from the Turkish Ministry of Industry and Trade. Therequirement for obtaining the permit is that the companies mustascertain that they are willing to offer service and spare parts inevery one of the seven geographic regions in Turkey. This they haveto describe how they will accomplish, either building offices orsigning agreements with the service or parts firms already in thefield.

Potential competitors in the market like General Electric, Philipsand Siemens already have both TSE approval and the TS-EN-ISO 9000.Philips has also established internal quality control regime. Thisgives Philips a competitive advantage over all the other electricalgoods company already in the market. Making this move would thereforepresent two main challenges: HEC might be overwhelmed by the stiffcompetition already in the market, and the company may face financialconstraints in trying to meet all the requirements of the regulationsand standards (Tatoglu, 2000).

In light of these potential challenges, the report, having analyzedthe Turkey imports regulations and standards, suggests that thecompany should form franchises with one of the local companiesdealing with electrical goods as an entry strategy. This will givethe company a competitive advantage and will enable it to be able toguarantee the provision of services as required by the Turkishgovernment. After adapting to the competitive market, the company maythen engage in creating and building the brand name in the Turkeymarket.

Reference

Tatoglu, E. (2000). Western joint ventures in Turkey: strategicmotives and partner selection criteria.&nbspEuropean BusinessReview, 12(3), pp.137-147.