As globalization has a huge trend of increase in the overall
Europe, customs taxes will start to decrease. This event causes lower cost
foreign competitors to enter domestic market which is a potential serious
threat for Arcelik-Beko.In the last years, Turkish government has
taken unsuccessful economical decisions that affect the domestics growth
in a bad manner that causes the growth of market not to increase rapidly.
These decisions also create a temporary business cycle and recession. Arcelik-Beko
does not have a power of responding to such economical crises as many of
the firms. As new technological innovations are created, Arcelik-Beko
interfaces with the necessity of following these innovations. This strategy
creates costly regulatory innovations. Foreign governments' policies also
carry potential threats since in some foreign markets there is a quota
of goods that is applied to Arcelik-Beko as the other Turkish
frms.Since Arcelik-Beko manufactures a huge variety of products that requires
lots of many raw materials, Arcelik-Beko has relations with a lot of suppliers.
The suppliers realize the dependency of Arcelik-Beko so that they increase
the bargaining power as a weapon.