Arzum Company Case Study: Strategies for Global Market Dominance

Arzum Company Case Study Analysis Students Name Course Name University Submission Date

Executive Summary Ultimately, the case study analysis focuses on the Turkish-based company Arzum, which deals in the electrical appliance industry. The electrical appliances company faced significant competition, a major challenge in the 1990s, with one of the major competitors being China. To guarantee enhancement of value proposition, the electrical appliances company transformed B product designs incorporating innovation and overall research and development to create differentiation. Subsequently, a significant move by the company revolved around the global development of its value chain and ensuring consistent collaboration with manufacturers in China, Europe, and Turkey. A case in point is the analysis of the sustainability of the supply chain by sourcing half of their products from Turkey and the rest from global markets. Additionally, in the 2015 financial year, the company expanded its product portfolio to over 250 items produced from the original 16 products. The company moved away from metallic molds in production and embraced the change in 2001, integrating plastic molds, which enhanced product times and quality. The case analysis, therefore, identifies the different strategies incorporated to ensure product differentiation, the incorporation of outsourcing designs, the integration of human capital incentive programs, and our focus on innovation to ensure optimal adaptability to the market. Subsequently, with the move to ensure dominance in the global markets, the case study analyses the production changes and the need to transform the company operations to balance the global value chain and the internal production of electric appliances in Turkey. Introduction The Arzum Company is an electric appliances company that was established in 1966. The company has extensively navigated challenges in the macro environment regarding

competition from both local and global markets. China was one of the main competitors worldwide; therefore, the company had to implement strategic aspects to create differentiation. Therefore, the company transformed its production processes to ensure optimal adaptability while embracing the global value chain. The incorporation of innovation was also a critical aspect in providing consistency in differentiation and adapting to the competition at the domestic and international levels. On the other hand, the company implemented different storages that were integral to its sustainability during the 2001 tacky economic crisis; one aspect was implementing the three-year warranty on its products. Implementing the strategies ensured market leadership and market dominance in Turkey. To this effect, the case analysis identifies the challenges faced by the company, such as the need for global expansion, and the analysis of possible alternatives and recommendations that will not only create differentiation but also enhance optimal market share expansion and positive return or investment. Problem Identification and Scope Extensive global competition The Arzum company faced critical challenges in expanding from the local Turkish market to the global market because of extensive competition from other international producers, such as China(Vardar, 2018). Therefore, the company needed to create differentiation strategies and enhance value, which would have been integral to enhancing competitive advantages. Balance in manufacturing The company had to ensure an optimal balance between international and local manufacturing with an emphasis on sourcing to guarantee the affordability of the overall supply chain.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Adapting to changes in production processes The manufacturing industry for electrical appliances significantly changed in 2001(Vardar, 2018). Additionally, it was compounded by the economic crisis in Turkey, creating a need for strategic decisions in adapting to production processes and economic dynamics. Analysis of Issues Global Competition Global competition was one of the significant aspects needed for transforming manufacturing and business models. It also required the transformation of supply chain evaluation to compete globally. A case in point is that the electric appliances company collaborated with suppliers from China and Eastern Europe, therefore focusing on sourcing half of the products from Turkey and the rest from the global market(Vardar, 2018). Additionally, the product portfolio's transformation was due to global competition, meaning that the company had to ensure optimal agility by developing a diverse value chain to enhance competitive advantages. Production Process Changes Additionally, one of the issues the company had to transform is to keep up with the macro environment changes regarding the different manufacturing molds for their products. In n 2001, the global market shifted from metallic mold-creating products to incorporating plastic molds instead. The company sought to eliminate the issue by adapting to the plastic molds, which were integral in faster production rates, enabling quicker responses to market demands. It enhances efficiency and boosts quality(Kuncoro & Suriani, 2018). The transformation was integral in ensuring consistency in differentiation and creating company agility depending on the global competitive dynamics.

Economic Crisis Response The company was faced with a critical challenge during the 2001 economic crisis. It is an aspect that requires adaptability and flexibility to guarantee consistency in return on investment. A case in point is implementing the three-year warranty offering to the target consumers. Ensuring that the company enhanced customer centricity in offering services and resilience was ensured in customer satisfaction, which was critical. Incorporating Design The company had previously focused on research and development innovation and design improvements to maintain its competitive advantages. To this effect, the company collaborated with external designers to ensure its products met consumer expectations. Additionally, the formulation of the designs was also based on consumer habits. Analysis and Alternatives Value Chain Optimization One of the aspects that the company should integrate is to ensure consistent global value chain optimization. It is vital to note that half of the company's products are sourced from the global markets in China and Eastern Europe. The optimization of the value chain and also ensuring pricing strategies that emanate from a consistent and efficient supply chain will be integral in mitigating risks. It will also impact the phasing strategies of the products for the local consumers, which will be an integral aspect of ensuring market dominance. Innovation and Design Ultimately, the focus on design and innovation are critical aspects that will contribute to overall competitive advantages. More resources should be integrated toward research and development, which will be integral in creating distinctive products and differentiated

products in the local and international markets(Vardar, 2018)—additionally, training human capital and incorporating external talents in the innovation of design products. Customer-Centric Approaches Market visibility and market research should be integrated to implement the n of customer cent customer-centric consistently. A case in point is the move towards creating products based on local target consumer habits. The case study identifies one of the elements where products are integrated, such as the tea maker(Vardar, 2018). It is embedded within the target culture to muster the local market: consistency in brand and product loyalty. Subsequently, integrating customer-centric initiatives, such as implementing extended warranties for products, will also enhance customer loyalty, which can translate to a return on investment. Porters value chain The Porter value chain revolves around aspects within a company that is integrated to ensure that the customer gets quality goods and a functional supply chain from manufacturing to delivering the goods or services. To this effect, it is an aspect that revolves around primary activities and support activities. In a setting organization, the primary activities revolve around inbound logistics, the integration of operations, and outbound logistics. Additionally, the supporting activities revolve around the structure of human resource management and the integration of technology and other aspects, such as procurement. Simulation of Porter value chain concept Conversely, implementing Porter's value chain concept in contemporary business can be analyzed based on primary and supporting activities. To this effect, a company manufacturing electrical appliances will incorporate inbound logistics, such as supplying raw materials from different destinations(Grigorescu, 2015). The operations help to align with

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

efficiency in the supply chain. Subsequently, procurement has to be incorporated to ensure the analysis of suppliers, the value proposition they add, and cost advantages to the organization. Supporting activities such as optimal human resource management and technology integration are integral for the business to guarantee product differentiation. Major changing structure Ultimately, companies in the 1990s integrated different changes in terms of structure to maintain competitive advantages in the marketplace. The first aspect is the integration of supply chain optimization(Grigorescu, 2015). It required transforming the tunnel aspects and structure to align with the macro environment's dynamics to guarantee adaptability and meet customer demands. Additionally, there was a relentless focus on implementing customer relationship management. To this effect, the integration of customer centricity was integral in ensuring optimal business flexibility and agility, which are rivals in maintaining competitive advantages from the 1990s to the early 2000s. Cost Advantages of implementation Porters value chain Cost identification and control: The first advantage is ensuring the optimal running of the supply chain towards ensuring cost efficiency. It is an aspect that can be best understood with the optimal analysis of the inbound logistics. Economies of scale: The optimization operations and distribution can be integral in ensuring economies of scale. It is critical in implementing Porter's value chain and how it can be used to develop cost advantages within the organization. Impact of supplier relationship: The cost advantages of Porter's value chain emanate from favorable supplier relationships that can impact procurement. A case in point is that there can be discounts and favorable terms from procurement, which are integral to cost advantages.

Recommendations  The first recommendation is that the company should focus on improving strategic partnerships(Osiyevsky et al., 2020). The enhancements of collaboration at a global level will be integral in ensuring innovation, and they were sourcing, which will create better prices for the supply chain and business agility in adapting to global trends.  The company should focus on increasing research and development resources towards constant innovation(Vardar, 2018). Embedding the culture of celebration will ensure differentiated products stand out from the competition and advertise from external designers to create unique products for the local and global market.  The company should focus on foreign investments and partnerships, guaranteeing market expansion. One of the company's major goals is to ensure market presence at the global level; therefore, incorporating partnerships to market with the Turkish culture in product design will be critical in creating consistency in market dominance. Conclusion In conclusion, the Arzum electrical appliance company indicates successful business agility and adaptation despite the prevailing global challenges. The company has consistently embraced research and development, improving designs and innovation, which are strategic for consistency despite the prevailing Economic challenges. The company has also implemented a unique approach towards enhancing the Turkish culture in producing the appliances. The integration of warranties to the products that also ensures that there are

optimal human capital incentives can help boost brand reputation. Additionally, as the Arzum company grows, it has to ensure a striking balance between compliance with the local market and global market expectations, which will help consistency in return on investment.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

References Grigorescu, I. L. (2015). Value chain analysis – the basic element of an organization's competitive advantage. International Conference KNOWLEDGE-BASED ORGANIZATION , 21 (2), 318–324. https://doi.org/10.1515/kbo-2015-0053 Kuncoro, W., & Suriani, W. O. (2018). Achieving sustainable competitive advantage through product innovation and market driving. Asia Pacific Management Review , 23 (3), 186– 192. https://doi.org/10.1016/j.apmrv.2017.07.006 Osiyevskyy, O., Shirokova, G., & Ritala, P. (2020). Exploration and exploitation in crisis environment: Implications for level and variability of firm performance. Journal of Business Research , 114 , 227–239. https://doi.org/10.1016/j.jbusres.2020.04.015 Vardar, N. (2018). “The Faster Fish Beats the Larger Fish:” Applying Porter’s Value Chain . https://doi.org/10.4135/9781526438102

Arzum Case Study Analysis.edited (1).edited

Related Documents