Question

Thinking about the various possible growth markets around the world, would you advise Arçelik to open up more country markets as part of its growth strategy? Or should the company concentrate primarily on its existing countries? You can assume that Arçelik is typical of many companies with only a limited amount of resources – both financial and human – to undertake further expansion.

Answer 1

Companies like Arçelik should weigh the potential benefits of entering new international markets against the challenges of expansion given limited resources. Prosperous economies often benefit from open markets and the ability to attract capital, but concerns about antitrust implications must be considered.

Step-by-step explanation:

When contemplating growth strategies for Arçelik, a company limited by its resources, it’s important to consider the trade-offs between expanding into new markets and consolidating its position in existing ones. Economic growth in successful countries, such as in Asia, is often attributed to maintaining open economies with balanced import-export activities and the ability to attract inexpensive capital for investments, as well as the adoption of free market economies that lead to innovation and prosperity. However, businesses must be aware of antitrust issues that can arise during international expansion.

For companies like Arçelik, the choice hin_ges on whether the pursuit of new international markets, which can offer avenues for purchasing goods and attract capital investments, outweighs the complexities of establishing a presence in unfamiliar territories with potentially limited regulatory support from national antitrust authorities.