PESTL Analysis of Turkey:

Political analysis:
On the current time period their political strength is that polices is in favor of liberalization.
Turkey supports the liberal trade in international countries and in favor with trade to other
countries. The exports of turkey are rising in average rate of 10% in every year. The backbone of
turkey is the fashion industry.
On the other hand, there was a threat to government of Turkey is that they are facing the problem
of terrorism. International forces are considered that the military of turkey has linked with AlQaida.
Economical analysis:
There is high of foreign investment in Turkey that is considered as the great strength of the
nation. The investment plays a vital role in expansion of country and has a great role in economic
growth of the Turkey. The mostly industries in turkey is privatized and that amount is utilize in
different project such as bridges, road and other development project and the money generated
from them is invested in expending the infrastructure of Turkey.
A major challenge faced by turkey is that the prices of locally produce commodity are high.
Mostly they relay on the import so that is why their balance of payment gone disturb.
Social analysis:
Turkey have a growing population there great strength is that more than half of the population is
under 30. Mostly population is young. There is a healthy supply of young age people who are
unemployed, when we install a plant in turkey there will be easy for us to get skilled person.
A great challenge for the government is that they have to face the unemployment. The
unemployment rate is increased is increased day by day. On the other hand it is advantage for
foreign investor if they install plant they got skilled person and the cost of training is reduced.
Technological analysis:

Turkey is adopting the new technological change with the change in the technology. According
to 2007, they spend the 24 billion $ rupees on research and development.
A great challenge is face by the turkey is that they spend low cost at research and development.
Legal Analysis:
In turkey there is separate courts for there related issues. They legal comprehensive structure.
General court to solve domestic issues and charge heavy penalty on them if it is prove guilty.
This is an advantage for executing a plant in Turkey is that they are very strict with their policies
and enforce the law if it is needed. If a business gone done in daily bases the trade union ask him
for issue and help them to solve it.
Major business of country:
1.
2.
3.
4.
5.

Electric Transmission
Airline Companies
Petrol Pipeline Corporations
Refineries Companies
Industrials(Construction & materials)

Major competitors at Turkey:

Sahinler Dalgic Pompa Ltd.Co
Sahin Submersible Motor Pump, Turkeys leading manufacturer of submersible motors and
pumps, was established in 1970. Sahin Submersible pumps with the strong position in the
industry following technological developments closely, of recognition across the country owing
to 40 years ongoing and dynamic management system with emphasis on customer satisfaction.
Sumak pump manufacturer co.ltd
Sumak Pump, which is 100% Turkish capital, owned company and founded in 1992 for
manufacturing water pumps.
Nemutlu pump foundry eng. Ind. Trade Inc.
Since 1975, they are producer of submersible pump, submersible motor, stainless steel
submersible pump, vertical shaft pump (turbine pump) (bronze pump).
Price Difference:
Water Pump

Up 6000-10000 PKR
But the Turkish manufacturing company sell this product at 230$.
By adding all the taxes and expenses we can generate a handsome profit on them.
Why we select turkey:
We select turkey because of that the rate of unemployment is quite high in turkey. And the
second major reason is Pakistan and Turkey has good relationships. A successful economy that is
beneficial for us. There are just three companies who producing water motor pumps. One
company is owned by Government of Turkey and remaining two companies are from private
business. The government urges foreign investment. We start supplying our motor pumps in
turkey that will cheaply as compared to their locally made pumps and we get easily our
marketing force due to unemployment.
The core benefit which we have is that the culture and religion of the turkey is same as like
Pakistan.
We have two major options when we are entering in international market:
1. By start selling product through marketing and after successful, we install our production
plant there.
2. The second option is costly and raised some difficulties during starting of work. We can
acquire the government motor pump industry, because government in favor of foreign
investment and use that money to expend their infrastructure.
By starting through export and then marketed to sell our product is quite time taking and
successful method to enter in foreign market. With this method we can easily get our marketing
by the population of Turkey. Less than 30% of the population is old age. And more than 70% is

young age people who have potential. They are willing to deliver the market. Through this way
company earn a handsome profit because our product is cheap as compared to their domestic
product.
By the second way we acquire the whole industry which is involved in production of water
pump. It is quite difficult government is agreeing to sell the industry. If the agree to sell then it
will take many time to understand the management of the organization.
Strategy use to enter in the market:
We will enter into the marketing by exporting, this is easies way to enter in the market we will
execute an outlet at Istanbul capital of the Turkey. Because of their rule and regulation branches
and license offices are not considered to be legal entities there. The major advantage of the city
(Istanbul) is that there is huge population is high in this city and demand of Motors and pumps
are very high within the same city. So we hire marketers which will help us to sell our products.
Due to unemployment the marketing team will easily hired at low cost. The currency Value of
Pakistan is Low as compared to Turkey so that our product cost is low and we will easily sell and
generate handsome profit.
If they want to open a new business there for that according to their rule and regulation
we submit 25% of capital to bank and obtain proof.
Trends of the customers:
The Turkish population mostly contain of teen agers. They are innovators and new thing
adopters, they like change. So we can easily get the attraction of marketing by launch this
product to Turkish market. Customers are price conscious they have no linked with quality of the
product they have just concerned with the price of the product. Example is the Turkish fashion
industry. They purchased new things and not concerned with the quality of the product.