Koc Holding

Koc Holding is an international conglomerate in Turkey. Arcelik it their largest subsidiary and the primary manufacture of their major kitchen appliances. Koc will begin to face more competition as a result of tariffs which will expire in 1996 diminishing barriers to entry for likely competition to enter their space. As a result, it does make sense for Koc to enter other international markets to help grow sales and counter any competitive moves in their space.

Company's like Bosch who will enter the market are at a disadvantage since Koc has been a lone player in the market. Also, when it comes to purchasing appliances, it is usually as a result of a move to a new home or defective and outdated appliances. If Bosch can be successful in establishing their brand, they may pull some market share but Koc has the first mover advantage and will continue to control that market long-term.

Koc's competitive advantage (tariffs) are not transferable to other markets, a good brand name is transferrable. I recommend Koc: