Strategic Planning for International Business: The ARJMST Jewelry Company Is Going Global Report (Assessment)

Industry Analysis: Rubies and Diamonds

Given the fact that Turkey makes most of its GNP from the local tourist industries, there is no surprise that jewelry as one of the key means to attract tourists to the state remains among the most competitive industries. In fact, Turkey is the third largest jewelry exporter in the world after Italy and China (Jewelry in Turkey, 2012).

It would be a mistake, though, to assume that the market is flooded with rivals of all calibers – quite on the contrary, only two major brands are traditionally recognized in the given market. Atasay maintains its 6% of all shares within the given market since 2011, with Goldas coming as a close second.

Although the latter suffered a major crisis in 2009, it is still alive and ready to attract new customers. Gulaylar and Altinbas are also of considerable influence in the given field, though they are clearly no match for Atasay (Jewelry in Turkey, 2012).

Labor is another important reason why producing gold in Turkey is such a good idea – labor force is very cheap in here, especially when compared to the labor force in such states as Italy. The price, unfortunately, correlates with quality directly – most of the people employed in the industry alack proper education.

However, when it comes to skills training, the given problem is rather easy to solve with the help of training courses provided by the company for new employees. Speaking of ARJMST, the company will need an accountant, a salesperson and security.

Turkey also has a number of packaging companies to offer, which is especially important for ARJMST. The production process will take place in the UAE (home country). Thus, it will be possible to cut losses to the minimum.

Target Marketing and Positioning: The Magic of the World of Cinema

As it has been stressed above, most of the target audience is going to be composed of tourists and the local residents.

However, in contrast to the former, promoting for the latter is going to be quite complicated, seeing how a number of other jewelry companies within the given market are already using a number of popular strategies and, therefore, the target audience is already aware of the basic means of customers attraction.

To apply to the general population, it will be most reasonable to put a stronger emphasis on the cultural aspect and explore the current trends in the popular culture of Turkey.

According to the recently acquired data, most of the target audience of Turkish origin, i.e., the people aged 18–50, are fascinated with Beren Saat, a famous Turkish actress (Yurdakul-Sahin & Atik, 2013). Therefore, signing her up for a contract with the ARJMST Company for creating a promotion campaign will be an adequate promotion strategy.

It should be noted, though, that a famous actress will demand corresponding payment for advertising the company’s jewelry to the public. Thus, it will be necessary to reconsider some of the company’s costs, such as the logistics associated costs, primarily, the costs for transportation of the resources. Since most of the resources are going to be acquired within the state, the company may possibly use its own resources for transportation.

Speaking of the promotion campaign, ARJMST will advertise its products on billboards, public transport and TV. The Internet resources are also going to be used actively. TV and YouTube commercials will be used along with pictures on billboards and posters and in public transport.

International Competitive Strategy Choice: A Reasonable Decision

As it has been stressed above, the ARJMST Company is going to expand further into the world market and become a part of the globalized economic process. Therefore, it is most reasonable to pick the strategy that will allow for a better quality of interaction with the company affiliates and the international partners, making sure at the same time that the rivals should not get the gold of the company’s confidential information.

Seeing how the ARJMST Company has clearly taken expansion into the foreign market as its top priority, one must admit that the firm has no other choice but to pick the international strategy as its key method of fighting off the rivals.

In addition, the international strategy offers numerous advantages not only for international relationships, but also for home trade (Twarkovska & Kakol, 2013).

In addition, the fact that international strategy involves low pressures for local responsiveness presupposes that the imperfections concerning the cohesion between the ARJMST’s departments are not going to be very noticeable and will not affect the company’s productivity that much.

Market Entry Strategy: Wholly Owned Subsidiary Strategy

Exploring new types of markets, ARJMST has a number of challenges to face, primarily the ones regarding the way in which the company is going to enter the market.

Since, according to the research, the market is already dominated by other major companies, Atasay being the key rival to combat (Akbay, 2012), it will take the ARJMST Co. considerable effort and impressive skills to withstand the rivalry and get a hold of at least some of the stocks and shares for the jewelry retail in Turkey.

According to the available data, the Wholly Owned Subsidiary strategy is going to suit the given goals perfectly (Julian, 2009).

Locating the shop: a strategic choice

Some of the basic questions, like where to locate the company shops, may determine the outcomes of ARJMST’s expansion into the globalized market greatly.

Judging by the fact that Atasay has already taken some of the most convenient places to locate the shops in, including the Köy Altı street in Osmaniye, it will be necessary to situate the company’s shops in the places where people will be able to spot them easily, yet where the renting price is not going to carve a large part of the company’s incomes.

Hence, ARJMST must consider the idea of having three to five minor shops scattered over Turkey, preferably in the cities where major tourist attractions are located, such as Marmaris and Didim, and one shop in Osmaniye (Gezici & Kerimoglu, 2010).

The latter location is especially important, since it helps being close to the rival and, therefore, tracing the competitor’s course of actions, at the same time attracting some of its clientele.

Defined as a cluster, the given strategy will help the ARJMST company keep finger on the pulse of its key rivals’ plans and be aware of the moves that the latter are going to make in order to improve their position within the Turkish market, as well as within the global one.

International Human Resource Strategy: Polycentric Approach at Its Best

The last, but definitely not the least, the company’s human resource strategy deserves to be mentioned. Seeing how the ARJMST Company is going to expand further into the European and Asian markets, the strategy that will help coordinate the work of both the offices located in Turkey and the affiliates situated in European states will be required.

Consequently, the polycentric approach should be utilized, since it allows for defining the course that will suit both the local offices and the ones that are located outside the state.

As the existing sources explain, the polycentric approach helps both create a single policy for all offices to adhere to, and provide the company affiliates with enough independence for these affiliates not to be influenced negatively by any changes within the company’s headquarters.

That being said, the polycentric approach will open its own set of challenges to the ARJMST Company, the primary one being the need to introduce a clear mission statement, vision and goal of the company. Without these components being strong enough, it will be practically impossible to coordinate the work of every single affiliate.

Despite the challenges that the company is going to face, expansion will definitely help ARJMST become an easily recognizable and popular brand. Once the company uses its assets, it will be able to beat its rivals and become a number one jewelry company in Turkey.

As touch as the competition is, with well grounded strategies and a promotion campaign to rely on, ARJMST will become one of the top jewelry selling companies in Turkey and achieve stunning success in the UAE.

Reference List

Akbay, S. (2012). Banks urge Turks to exchange their gold for pretty certificates. Web.

Gezici, F. & Kerimoglu, E. (2010). Vulture, tourism and regeneration process in Istanbul. International Journal of Culture, Tourism and Hospitality Research, 4(3), pp. 252–265. Web.

Jewelry in Turkey (2012). Web.

Julian, C. C. (2009). Advances in market entry mode theory development. International Journal of Trade and Global Markets: Special Issue on Advances in Market Entry Mode Theory Development, 2(3-4), pp. 211-216. Web.

Twarkovska, K. & Kakol, M. (2013). International business strategy: Reasons and forms of expansion into foreign markets. Zadar, Croatia: International Conference. Web.

Yurdakul-Sahin, D. & Atik, D. (2013). Celebrity influences on young consumers: Guiding the way to the ideal self. Izmir Review of Social Sciences, 1(1), pp. 65–82.