Victoria Secret in Turkey

The shopping m exclusively East consists of several countries in West Asia. Ar manpoweria, Azerbaijan, Bahrain, Gaza Strip, Georgia, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi-Arabian Arabia, Syria, turkey, unite Arab Emi arranges, West Bank, and Gaza, argon all the 19 countries that ar categorized as the nitty-gritty East. The frontier substance East is considered to be a Eurocentric term and is employ as a synonym for the Near East. Since the Middle East extends over so many countries, there atomic human moldivity 18 major economic, cultural, and ghostlike contrasts.Some of the countries in the Middle East atomic number 18 exceedingly wealthy oil landed estates like Saudi Arabia, Qatar, and United Arab Emirates, that generate large amount of revenue and be on the top list of the worlds wealthiest nations based on income per capita. And then there ar near sincerely poor nations, like Gaza and Yemen, which be mea real upd by unrest and war. The Middle East in addition varies a lot when it comes to cultivation and religion. Islam is the biggest religion in the Middle East and many of the countries founder really strict religious rules, with little freedom for women.But there be alike countries where Judaism and Christianity are represented, and women create compare or al close to equal rights as men. bang-up of Seychelless deep was founded in 1977, in San Francisco by Roy Raymond. It started with three shop classs and a mail-order catalog. In 1982, after tho five years of operations, Raymond sold the company to Leslie Wexner for $4 million. During the 80s capital of Seychelless occult chop-chop expanded into U. S malls. By the proterozoic 90s capital of Seychelless carry away of sight had become the largest Ameri lot intimate apparel retailer, topping whiz billion dollars. at that place are approximately 1,000 capital of Seychelless secret lingerie stores and 100 independent capital of Seychelless secret Beauty stores in the U. S. We stag a range of brassieres, panties, hosiery, cosmetics, sleepwear, and other products. In 1995 capital of Seychelless reclusive had their first fashion show, which straight off has become a huge hit. The show features slightly of the worlds leading fashion models such as flow capital of Seychelless underground Angels Adriana Lima, Alessandra Ambrosio, and Miranda Kerr. Because of the huge differences in economy, civilisation, and religion, we at Victorias Secret contumacious to focus on wizardness country at a time.We decided that it would be the best opportunity to open our store in dud. flop has the largest economy in the Middle East based on nominal porcine domestic product (GDP) and the cultural and religious barriers are not as dominant as in some of the other Middle Eastern countries. joker likewise has a huge securities industry for tourism. merchandise bomb has a large population with 71 million mountain. They deal generally a younker population, with 61% of the people being younger than the geezerhood of 35. duds average gross guinea pig product (GNP) per capita is $7,500.About 71% of the population lives in the urban areas. Istanbul is Turkeys largest city with somewhat 12 million people, and Ankara, the capital, has about 5 million people. Turkey is located in Southeastern Europe and south Asia, bordering the Black Sea and the Aegean Sea. Turkeys location gives them an excellent base for economic activities end-to-end the region. Turkey has a budget revenue of $176. 8 billion and a budget expenditure of $189. 2 billion. Turkey is running a budget shortfall of 1. 6% of real GDP.This budget deficit, together with dubiety related to the monetary policy-making, and political disorder in Turkeys neighbor countries, makes the Turkish economy vulner subject to destabilization shifts in investors confidence. Turkey has a young and well-educated population, but 10. 3% of the Turkish populati on is unemployed. The prod force is 27. 43 millions, where 25. 5% flora within the agricultural sector, 26. 2% works in industries, and 48. 4% works within the helping sector. Young people between the age of 15 and 24, 25% are unemployed. Women are still an untapped labor force in Turkey.Researchers say that about half of all Turkish women put in the labor market at some point in their lives, but nearly end up quitting because of family obligations or poor working conditions. We feel that this is a smashing opportunity for our company, because our target market is women. We involuntary accomplish to micturate ideal working conditions for all of our employees so they feel that they want to keep working for Victorias Secret. Economic and Political Climate We at Victorias Secret have been attracted to the Turkish market by the countrys rapidly expanding economy, political and economic stability, and the possibility of European trade union membership.Since Turkey is an associ ated member of the EU, it had to adopt many directives, regulations, and laws that are required by the EU. Turkey is outlet through changes, to strengthen its democracy and integrate its economy into the world(prenominal) market. The changes that Turkey is going through are going to be beneficial to us, because it go away make Turkey an easier market to enter and to do transaction in. It is as well as significant for us that Turkeys brass are become a more than than enduring government. It would be hard for Victorias Secret to thrive when the government is unstable and there are rapid and drastic policy changes.For a line of reasoning to survive in a unconnected country, it is crucial that there is a government that can acquire note itself in power and whose fiscal, monetary, and political policy are predictable. Turkey has an open market economy, with a compound of twain modern and handed-down industries. Turkeys industry and service sector are bonny the major drivers of the Turkish economy. Their private sector is bonny increasingly historic, as dry land involvement is reducing. The traditional textiles and clothing sectors, still account for one-third of industrial employment in Turkey.During 2011, the United Sates exported to Turkey for $15 billion, this is 34% incr easement from 2010. Foreign direct enthronisation (FDI) has in the recent years been attracted to Turkey because of their market reforms, strong growth and economic and political stability. The U. S. has officially invested about $6-7 billion in Turkey, a number that is understated because U. S. companies have invested through third countries. There are no restrictions over the export of greats from Turkey. Exports are exempt from the value added evaluate (VAT), duties and transaction taxes. Goods manufacture in Turkey have a art free access to the EU.There are also no import restrictions over goods trade to Turkey, with the exclusion of some restraints of very min or character. For imports that are imported to Turkey from countries other than European Union, customs duties and charges are relevant in agreement with the requirements of the customs union. Regardless of institution of goods, whether from the EU or a non-EU country, VAT is at a rate 18% (1% or 8% for certain basic goods). Good and run imported into the country, industrial, commercial, agricultural goods and services, and deliveries of goods and services caused by other activities, are all subject to VAT.The guidelines involving to the remittance of foreign capital and dividends out of the country are set out in Law No. 1567. According to these regulations, foreign investors have the same privileges and responsibilities as Turkish investors. The regulations also guarantee the transfer of profits, fees, and royalties and the repatriation of capital in the caseful of a liquidation or sale. For foreign pedigreees to enter into Turkey there is no dourer a minimum amount of capit al requirement, due to Turkeys new Foreign Direct coronation Law. It is no longer prerequisite to bring a minimum of $50,000 in share capital. As long as the form of company is included in the Turkish Commercial Code, it is your own choice on what company you want to establish. It is no longer obligatory to establish either a limited indebtedness company or joint stock company. In 2006, Turkey cut its corporate income tax rate from 30% to 20% making it one of the most competitive rates in the OECD. These corporate income tax rates, has mad Turkey an attractive championship milieu that presents favours and potential opportunities for business wishing to enter the market. nicety and InfluencesCulture is defined as the sum of the total of the beliefs, rules, techniques, institutions, and artifacts that characterize human populations. Societies are composed of its people and their culture it is therefore difficult to talk about one aspect without referring to the other. Sociocul tural has become the term that is used among businesspeople when talking about cultures and societies. For Victorias Secret to be successful in hatchway a store in Turkey it is crucial for us to realize that there are a culture differences from that of our own, as well as acquirement the characteristics of the culture so that we can adapt to them.Since culture is so broad, a listing of its regions may ease the analysis of the sociocultural viewpoint. These components include aesthetics, attitudes and beliefs, religion, material culture, language, societal organisation, education, legal characteristics, and political structures. The component that apply for Victorias Secret launch in Turkey is in particular religion, but aesthetics, and societal organization can also have an impact.Religion is an important component of culture and holds responsibility for many attitudes and beliefs the people have. In Turkey, the people practices the religion Islam and the population consist of 9 9. 8% Muslims, mostly Sunni. The Muslims follows the Koran, which is the collection of Allahs revelations to Muhammad, and is give tongue to to be the messenger of God. Following the Koran means freedom, and it is said to bring happiness for the Muslim to follow Gods word. For all Muslims the basic spiritual duties consist of the ive pillars of faith pass judgment the confession of faith making the five everyday prayers while facing Mecca giving charity abstemiousness during the daylight hours of Ramadan, a 29- or 30-day month in Islams lunar calendar making a pilgrimage to Mecca at least once in a persons lifetime. The Turkish state is becoming more than and more modernized, and so is also its religion. Turkey seeks to modernize Islam because they consider that it efficacy handicap their exploitation in becoming a more globalized and modern country. We commit that Turkey is a good place to open our next store in the Middle East because they are open for this figure of new businesses.Aesthetics refers to a cultures superstar of beauty and good taste. As the Turkish people are getting more modernized, they bequeath also get more influenced by the rest of the world. We believe that the fashion trends that are popular in the U. S. will become popular in Turkey as well, and that Victorias Secret lingerie can become part of the Turkish womens unremarkable life. Societal organization is the patterned arrangement of relationships defining and regulation the manner by which its members interface with one another. The women in Turkey dont have the same status as women in the U. S. , and the men and womens roles may vary a lot. This might cause a problem when introduction Victorias Secret in Turkey, nevertheless, we believe that the Turkish women, as they get more influence by the fashion trends in rest of the world, they will create a desire to buy our products. Victorias Secret is facing some sociocultural disputes when launching our business in Turkey , and we will have to give our customers some time to adapt to our products.However, when considering Turkey is development toward a more modern and global nation we have a bright outlook for the future, and believe those challenges will be exciting to tackle. Competition supranational scheme is concerned with the way firms make rudimentary choices about developing scare resources internationally. It is going to be crucial for Victorias Secret to give an international strategy because it involves decisions that deal with what products or services to walk, which markets to enter, and how to compete.It also deals with all the various functions in the organization, such as trade and production. The goal with an international strategy is to create competitive advantage, which means that the business has achieved and keep a unique and valuable position both globally and within a nation. To create sustainable competitive advantage it is important that a product or service creates value for consumers and for which customers are willing to pay for, are rare, are difficult to observe or substitute, and are organized in a way that allows the company to fully exploit and experience the value of the product or service.There are legion(predicate) lingerie companies in Turkey that can act as competitors when launching Victorias Secret in the country. The Turkish economy is growing and the topical anesthetic companies are developing great skills when it comes to adapt to customers demand, which results in companies that are becoming stronger when competing in the global market. However, the briny reason why Victorias Secret has become so successful is because we have been able to create products and services that meet the criteria for a sustainable competitive advantage. Therefore we believe that we will be able to successfully compete against the Turkish lingerie companies.Turkish is the predominant language in Turkey, spoken by 90% of the population. Minority l anguages include Kurdish, which is spoken by 6% of the population, although this isnt recognized as an official language. 1. 2% of the Turkish population speaks Arabic but most of those speakers are bilingual and speak Turkish as well. Because we will compete at a local anesthetic level we believe that it will be important to communicate in Turkish. We will make sure that we have employees that are fluent in Turkish to be a part of our marketing and business team in order to establish a local presence with our products.Because verbal communication is more dominant than written expression in business in Turkey we will focus much of our advertising through media such as radiocommunication and TV. Since most of population is Muslim we have to take this into consideration when creating our advertising campaigns. Something that could be a challenge for us is the variable prices many stores and competitors have. This cultural difference where everything is negotiable have to be considere d when entering Turkey. A wide range of shops has no prices listed. Customers simply have to ask the price of everything and the sales person will have the right answer.Even luxury shops selling rhombus jewelry are open to negotiation. We have elect not to adjust to this cultural difference. It does not go well with our business model and we believe that customers will be able to adjust to Victorias Secret stricter price listings. But, it is still something to be sensible of when training our employees that will be working in our stores. Special offers and other sales or marketing tricks are common in the Turkish business environment. The buy one, get one free offer can be seen in most retail stores in Turkey. This is something that we will use and take advantage of.We will use the same strategies as we have in the US. Making special offers for customers if they buy more than one of selected items. Seasonal offers will also be implemented. Victorias Secret in the Middle East We wa nt to make Victory Secret the most known lingerie brand in the world. By expanding with a third store in the Middle East, and more specific in Turkey, we are certain that we will be able to gravel this goal. 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