Potential External Threats of ARCELIK-BEKO
 
 


 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.