High Amount Of Market Share In Turkey example essay topic

1.) Products and estimated market potential: The international market in PDAs (Personal Digital Assistant) is increasing every year. In the past, PDA's were only expected to do simple tasks, like creating a schedule, alarm clock, calculations and other smaller tasks, which were seen as essential for businessmen. However today, the consumer range of PDA did increase immense. University students, teachers, small business owner, taxi driver and other type of occupations do require the need of an organizer in their life.

With the advance of the technology, the PDA's were getting extra tasks to be able to answer their users requirements, like wireless internet connection, infra-red, Bluetooth, a coloured screen, and even games. We, as Toshiba, one of the major Computer manufacturer in the world, decided to enter this market, to profit from its growing capacity. Because of the experience they got in this area for years and the investment they did into this sector, Compaq / HP is the ultimate market leader with approximately 75% market share. The remaining 25% are split under PALM, SHARP, SAMSUNG and SONY.

Dell, the American Computer Manufacturer, also did enter this market with their new PDA model, the Axim X 3 hoping to get a piece of this huge cake. To be able to make an effective entry into this market, we as Toshiba are looking for markets where there is still a high competition and where Compaq / HP did not gain such a high market share. This is the reason, why we plan to launch our new product in Turkey, where there is a high potential of success for our new device, the Toshiba E 800 series. We know that we can answer to the requirements of a wide range of costumer in Turkey, where the interest towards PDA is as high as the rest of Europe. The Toshiba E 800 Series, gives the consumer a wide range of specification, from Home and Office users, until Medium and Large businesses.

With the developed graphic card, watching. avi formatted movies will be cleared in the 3.5 inch PDA screen. Even though we are new in this market, we have some very good results with our benchmarks and the results in the researches made by Computer magazines. 2.) Customs requirements both in the Exporter's and Importer's country: To be able to declare and clear export goods from the UK, where the PDA's are manufactured, the exporter first needs an export certification from the Local Export Control (LEC). With this certificate, we won't have any problems during the clearing of the goods during the costumes. In the moment when the papers are received, the goods will be able to clear by the British Customs Control and the ready to get shipped to Turkey. An other paper, which the English costumes require to let the goods pass the border, is the so called Single Administration Documents, which is required for the export of any good.

Turkey and the European Union did sign a preferential trade agreement in the past. This allows goods, which are manufactured or which are in a free circulation in the EU Zone, to pay less or no customs duty when they are imported into Turkey. This basically means that the Republic of Turkey does need the same requirement, as any other Country in the European Union. Every good, which will enter the country do need these requirements: - Commercial Invoice- Certificate of Origin- Bill of Lading / Airway Bill- Pro-forma Invoice- Inspection Certificate- Insurance Certificate- ATR Forms The key documents on this list are the Commercial Invoice, the Certification of Origin, Pro-form Invoice, and the ATR. The Commercial Invoice is only valid, if a copy of the original document has been submitted. The commercial Invoice does require a full explanation of the good, and all required payment terms.

The original copy of the Commercial Invoice has to be signed by the exporter and must be certified by the Turkish Embassy in London, for example. One copy of the document has to be attached to the travelling goods, while the original has to be given to the importer through the corresponding bank. The Certification of Origin also needs to be signed and approved by the Turkish Embassy. A copy of the document has to be given to the customs authorities at the date of importation.

One important detail about the Pro-form Invoice is fact, that this document cannot be older than six months at the time of application and needs to contain an unexpired option if it is considered to be appropriate. The importers name is also required on the document. Freight and insurance charles must be pointed out separately (web) Another important document requirement for the Trade with Turkey will be the ATR. The ATR certificate is the document that proves to the Turkish Customs Authorities that the goods have come from the EU and so are entitled to preferential treatment.

ATR certificates can be obtained from your local Customs Advice Centre together with an explanatory leaflet European Community Preferences: Trade with Turkey which is Customs Notice 812. It is possible for ATR certificates to be issued retrospectively so you should start the procedure without delay. (web) 3.) Import and Foreign exchange regulations: Turkey joined the Customs Union in 1996, which means that their regulations are similar to other countries which we traded with before. This will make the export of our good easier due the experience we have with these regulations. The membership of Turkey to the Costumes Union means that goods have free movement, as I mentioned above. In addition to this, the goods can also be free of import duties and other type of charges. Other advantages are for example that there are no price regulations imposed by the government.

There is also a general satisfaction with the trade with Turkey. As we can see in the graph above, the import rate of Turkey is rising constantly. This is caused by the general satisfaction of the trade conditions with Turkey. The most profitable way for us to send our products to Turkey would be over water. Due to the C.I. F (Cost, Insurance and Freight), we will need to prepare the goods for the shipment and load them on the vessel. Until the point when the ships reach the port in Turkey all the risks will lie on our shoulders.

Our partner in Turkey will pay all the cost for the insurance and freight forwards fees. Additionally, the importer will be responsible for the VAT payments. This basically means that, all goods which are exported to Turkey from any country in the world will be held in customs until the importer duties and the VAT are being paid by the importer. According to the regulations in Turkey, the goods are only allowed to stay at the costumes for maximum 4 months after the arrival of the shipment. If the VAT and the import duties won't be paid within this time, the state will claim the goods. (web).

4.) Your proposed contract terms including advice on proposed methods to limit exposure to non-payment risks: The main documents which will be required to limit any type of risks are the Bill of Landing and the Bill of Exchange. To reduce the risk of not receiving the money we agreed on the contract, we should guaranty ourselves with the Bill of Exchange. So in case of a problem with our partners, like problems in liquidity or transferring the money, we still will be able to receive the full amount we agreed on. According to the financial liquidity and their account details, our partner is financial very strong. Due to this fact, we will prepare the Bill of Exchange on Termed level (D / C). This means that we will give our partner time to pay back the money, so he can invest more money to the marketing of the good.

We will give him a 90-130 days paying schedule, we he can pay all the money within these days. At the day, when we put the goods on the transporters, we will receive the Bill of Lading from our partner in Turkey. This document will proof that we are the owner of the goods, until they reach to our Turkish partner. These documents, Bill of Lading and Bill of Exchange, and also the insurance papers, every license and certificate which is related with the trade, we be given to the banks we work with. The banks will play the role of the guarantor; in case of any problem the bank will supply the required documents. 5.) Physical distribution methodology to be employed: Our goods will be shipped from Southampton, the biggest dock in the UK to Istanbul.

Our local partner will be responsible for the distribution in Turkey. To discuss the means of the transport, we have to talk to our partner in Turkey. If our partner company does have its own shipping facilities we can let him do the transport, considering the fact that we as Toshiba are not specialized in shipping goods. If our partner does not have any experience in transporting goods either, we can both use a transport company to make the transport, such as the DHL. DHL would be a very good partner for the transport, due to the fact that DHL is the market leader in transporting goods and has a lot of experience in this area. Our responsibility for the trade will be to prepare the Bill of Lading, and hand it to the company which does make the transport.

They will be in charge of handing the Bill of Lading to our partner in Turkey. (web) 6.) Proposed marketing methodology particularly with respect to mode of entry, channel strategy and tactics. Final price calculation: Our first aim should be the introduction of our product in Turkey. The brand Toshiba is well known in Turkey and the costumer won't have troubles in trusting the quality of our PDA's which we manufactured. However, to gain a high amount of market share in Turkey, we have to focus on our products specification. The availability of the Wireless for example is a very strong plus for our product. One other plus in our product is the high performance of the graphic card.

With this graphic card, they can watch movies in their PDA's. Many users do download movies or sit-come on their PDA's. Considering the fact, that the Turkish costumer are looking for new technology in the goods the purchase and do follow the market intensively. For the marketing of our PDA, we will trust the local expert due to the fact that we are firmly new to the Turkish market in the case of PDA's.

We supply the marketing company which will take our case, with all the information it will need to create a good image for the consumer. 7.) Price CalculationManufactruing Cost of 100 Toshiba PDA 250000 Packing for Transport.