Vestel Elektronik Sanayi Ve Ticaret A.Ş. is a Turkish electronics and white goods manufacturer. The document provides an analysis of Vestel, including its operations, financial position, core competencies, and SWOT analysis. It notes that Vestel has a strong brand and export focus. However, it faces threats from competition and economic conditions that could impact consumer demand.

1. Vestel Elektronik Sanayi Ve
Ticaret A.Ş.
Presented By : Emmanuel Amako
Hatice Gürkaş

2. Table Of Content
1. Industry Analysis
I. Brief Overview Of The White Goods and Electronic Industry In Turkey
II. Main Competitors
2. Company Analysis
I. A Quick Look At Vestel
II. Shareholding Structure
III. Misson and Vision
IV. Growth Strategy In The Main Fields Of Operations
3. Operation Expansion
I. Local Market
II. International Market
III. Mergers and Acquisition
4. Porters 5 Forces
5. Financial Position
I. Financial Highlights
II. Balance Sheet
6. Core Competence and Competitive Advantage
7. S.W.O.T Analysis
Vestel A.Ş Strategic Business Analysis
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3. A Brief Overview of the White Goods & Electronics Industry in
Turkey
 White Goods
 Large scale Turkish and foreign manufacturers : Arçelik , Vestel, BSH,
Indesit, Vaillant, BDR Thermea
 50 medium sized manufacturers, 500 parts & components manufacturers,
12,000 dealers, 1500 technical services, 120,000 employees
 Largest production capacity in Europe: 25 mn units
 Exports: USD 3.3 bn in 2013
 Imports: USD 1.1 bn in 2013
Vestel A.Ş Strategic Business Analysis
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4.  Electronics
 2033 manufacturers
 USD 12.5 bn sales in produced goods and USD 18 bn in engineering
and service
 Exports : USD 6.8 bn
 Imports: USD 16.1 bn (main sources: Far East, EU)
 Turkish manufacturers have 50% share in the CRT TV market in Europe
 50,000 employees in production and 100,000 employess in related
engineering and services
 USD 250 mn in R&D expenditures
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5. Main Companies
Rank Company Net Sales
(TR , MN)
Number of
Employees
Share of
Foreign
Capital
1 Arçelik 8,842 15,832 0%
2 Vestel Elektronik 3,418 5,222 74.69%
3 BSH Ev Aletleri 3,497 5,878 99.28%
4 Vestel Beyaz Eşya 2,164 5,830 0%
5 Vestel Dijital 845 917 0%
6 Indesit Co. Beyaz Eşya 875 1,088 100%
7 BOSCH Termotektnik 573 - 100%
8 Turk Demir Dokum (Vaillant) 570 1,071 96.19%
9 Baymak Makina (BDR Thermea) 243 409 3%
10 Kumtel Dayanıklı Tüketim Mallari 331 318 0%
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6. A Quick Look at Vestel
1984
White
Good
Zorlu
Holding
Manisa TV
Producer
Electronics
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7. Shareholding Structure
81%
17%
2%
Shareholding Structure of Vestel
Zorlu Holding A.Ş.
Zorlu Holding A.Ş.
(publicly held)
Other Shareholders
(publicly held)
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8. Mission and Vision
 Mission
‘’As the technology giant of Turkey in durable consumer goods sector, we carry out our
activities with a mission of making the “highest quality” accessible to our customers
and being a leader in the sector we operate in.’’
 Vision
‘’ We continuously invest in research and development to strengthen our outstanding
position in the market. In this regard, we will carry our current determination to the
future.’’
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9. Growth Strategy in the Main Fields of
Operations
Vestel’s future growth strategy in its main fields of operations
consists of four components:
• Improving market diversification
• Increasing customer and product
diversity
• Brand-centered growth
• Gaining market share in
new areas of use
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10. OPERATIONS EXPANSION
(In the Local Market)
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11. International Market
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12. MERGERS AND ACQUSITION
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13. Porter’s 5 Forces
Threat of new
entry
• High capital
requirement
• Already
congested
market
Supplier Power
• A large
supplier base
• Less supplier
power
Buyers Power
• Power of
buyers are
less
Threat of
substitution
• A vast option
of available
alternatives
Competitive
rivalry
• Many
competitors
• Tight
competition
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14. Financial Position
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(US$mn) 2013 2012
Net Sales 3,270 3,921
Exports / Sales 73% 75%
Operating Profit 90 (52)
EBITDA 215 49
Net Loss (52) (62)
Total Assets 2,641 2,758
Shareholder’s Equity 630 753
Net Debt 304 372
1. Financial Highlight

15. 2. Balance Sheet
0
1
2
3
4
5
6
2010 2011
2012
2013
Total Assets
Total Liabilities
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• Quick Ratio : 0.59
• Current Ratio : 0.97
• Debt to Equity : 41.39%

16. 3. Income Statement
-0.5
0.5
1.5
2.5
3.5
4.5
5.5
6.5
7.5
2010 2011 2012 2013
Total Revnue
Net Income
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• Gross margin : 20.22%
• Operating margin: 4.99%
• Net Profit margin : 1.03%
• Return on Investment :
4.08%

17. Vestel's Core Competencies and
Competitive Advantages
CORE
COMPETENCE
A network
that embraces
the globe
Economies of
scale
The customs
duty
advantage
Product
diversification
strategy
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18. Cont’d
Core
Competence
Comprehensive logistical
services and product
flexibility
An externally
oriented
business
model
A strong
brand and a
strong market
position
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19. Strength and Weakness (S.W.O.T Analysis)
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20. Strengths
1. A key strength of Vestel is its bold , innovative and strong
Management team.
2. Vestel serves as a new and a safe alternative to customer’s unsatisfied
With the services of Vestel's competitors.
3. Vestel has been exporting more than its competitors which give them
an edge in the international market and also improves it brand name in
the local market.
4. Political, Economic and financial barriers of entry into the market can
also be categorized as a strength of Vestel since these barriers makes it
difficult for new firms to enter the market and hence less competitor’s
for Vestel to compete with
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21. Weakness
1. Production of white goods may not be of the best
quality as compared to other electronic goods like
the Vestel TV
2. It’s low customer services as compared to it’s
competitors
3. The competitive nature of the it’s market
4. The possibility of high interest rates on loans
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22. Opportunities
• The ever growing Turkish population offers a huge
oppurtunity to diverse and enter other lucrative sectors of the
economy
• Vestel has the tendecy to offers its European customers high
quality but low priced electronics as compared to it's
European counterparts
• New generations of quality products that keeps the customers
demand alive
• Labor costs are lower as compared with their European
counterparts
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23. Threats
1. The purchase of white goods are dependent on economic conditions and
on customer's income and this can pose a threat to Vestel
2. Government support in Manufacturing , Sales and Exports are on a low
level
3. High direct and indirect taxes
4. Severe competition that happens as a result of playing with the price of a
product can pose a threat to the company
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24. Vestel A.Ş Strategic Business Analysis
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