Baser Food Company SW Analysis
• Turks have a strong taste for vegetable and seed based oils providing a ready market for Baser Olive oil; Domestic market absorbs 1. 2 million tons annually which is higher compared to 103,093 and 16,414 exported in 1999 and 2000 respectively (p5). • Olive oil is craved because of its health benefits; Lowers low-density-lipoprotein (LDL) cholesterol and raises high-density-lipoprotein (HDL) cholesterol, rich in Vitamins (A, D, E & K), provides essential fatty acids, has high caloric value and maintains a smooth and young-looking skin (P4). • Baser food is a subsidiary of the Baser Holdings that has a diversified production; she produces other lines of products that would well absorb losses when olive is not moving; chemicals, plastics, packaging, textiles, forex trade and finance (p9). • Baser’s executives are veterans; the president Mehmet Baser and the food marketing director Altay Ahyan have been at the center of fast consumer brands and travelling globally equipping them with rare management skills (p9).
• Even then; • Government has shown strong will to promote liberal trade; Turkey is a member of EU. • Offers uncertainties for Baser’s Olive Oil business. Economic analysis • Turkey has a large economy (GDP, $2. 3 trillion) with 81,796,908 people expected to hit 93 million by 2050. • Turkey has had a stable economy due to strong Fiscal and monetary behavior. Technology • The Market is characterized by research and development. • Over 50% of the population use mobile handsets. • Attractive to foreign capital and technology. • The economy is tech pervasive and thus highly recommended. Legal • Turkey thrives in the observance of the law. Say if she produces in Shanghai, she cuts on Freight expenditures of producing Olive oil in Mugla and carrying it all the way to China. • Attract collaborations that would reduce the cost of entering export markets as has taught BSEC and EU (p15).
Markets that Baser Can think of investing in • Baser Foods has been exporting to other countries and her export data is the most ideal source to reveal the very potential markets for the company. • The United States, The European Union, Asia, Australia and the middle East stand as her most promising markets for Baser to venture in (p8 and ). • A PESTEL Analysis of the markets reveal the following: PESTEL Analysis of potential Baser Food Olive Oil Markets United States European Union Asia/Japan Australia Middle East Political Analysis • Has the most stable political climate in the world. • Is a hotspot terrorist destination and botched with a lot of uncertainty. • Un-ideal for Baser. Economic • Is a member of NAFTA where Baser will enter Canada and Mexico Freely by entering the U.
S. A. A and EU; her oil consumption is less than 30,000 tonnes when U. S and E. U consumed over 100,000 1995-1996. • High per capita income. • More price competitive than any other Baser market and more profitable. • Ideal. • Asians value healthy eating. • Ideal. • Arabs and Muslims who dominate the Middle East value healthy eating. • They value Italian Olives more than Turkish. 5% internet penetration which is lower compared to the other markets. Environmental • Moving towards alternative sources of natural oil. • Favors olive oil. • Moving towards alternative sources of natural oil. • Favors olive oil. • Ideal. • Strong and reliable legal system. • Ideal. • Strong legal system but weaker compared to America, EU and Australia. • Australia Beats all her peers and is the best next market for Baser Foods Olive Oil.
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