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Turkish TV Triumvirate: Vestel, Beko and Profilo's LCD TV Development Strategies
October 23, 2007 / Abel Wang / Crystal Chiu
11 Page, Topical Report
US$1,280 (Single User License)

Abstract

In order to avoid Europe's 14% import tariff on television sets, many large television companies have been spurred to set up plants in Europe. However, the EU continues to expand eastward with Turkey already being an EU candidate country. Though it has not officially acceded to the EU, Turkey already enjoys zero import tariffs in Europe. Based on this geographical advantage and zero tariffs, Turkish television companies have committed themselves to the development of own-brand and contract manufacturing businesses. Also, using the advantages of their experience working with major vendors and the support of their conglomerates, Turkish television companies are poised to play a major role in the worldwide television manufacturing supply chain.
  •  List of Topics
  •  List of Figures
  •  List of Tables

Expanding Cooperation with Major Vendors to Create Advantages

Vestel, Beko and Profilo are three large Turkish television manufacturers. They began in the CRT TV age, accumulating plentiful experience in television manufacturing and cooperating with many large companies. Besides raising the manufacturing capabilities of these companies, the cooperation with these major vendors has also created more contract production opportunities. Also, observing the development path of their products, they have launched products using full HD and 100Hz technologies. This demonstrates their technological capabilities have caught up with those of major vendors, while simultaneously advertising they have the technology to receive orders from major vendors.

Abundant Resources Cannot Be Overlooked

Behind these three Turkish television manufacturers are the abundant resources of several conglomerates. Besides that, the resources of the Turkish government support the KOC conglomerate and their subsidiary Beko. Under the conglomerate model, besides doing contract manufacturing and operating an own brand, they have also acquired other regional European brands to develop the European market, and prevent any backlashes arising from cultural differences. Their abundant resources enable Turkish television manufacturers to readily develop the LCD TV market.

Comprehensive Channel Deployment

With Turkey's advantageous geographical location and these companies' CRT TV market experience of the past, they enjoy a comprehensive system of distribution networks in the European market. Due to the fact that Europe is made up of many different countries, it is more complex than the North American market. Therefore, grasp of distribution channels in the European market will be a great advantage. Turkish companies have worked very hard in managing their distribution channels. In addition to the European market, they are currently actively positioning themselves within the Chinese market.

Appendix

Glossary of Terms

LCD TV

 

Liquid Crystal Display TV

CRT TV

 

Cathode Ray Tube TV

Full HD

 

Full High Definition

PDP TV

 

Plasma Display Panel TV

LCM

 

LCD Module

PCB

 

Printed Circuit Board

CIS

 

Commonwealth of Independence States

List of Companies

Arcelik

 

 

Beko

 

 

Finlux

 

 

Grundig

 

 

Hitachi

 

 

JVC

 

 

KOC

 

 

LG

 

 

Luxor

 

 

Matsushita

 

 

Profilo

 

 

Samsung

 

 

Sanyo

 

 

Sharp

 

 

Sony

 

 

Thomson

 

 

Toshiba

 

 

Vestel

 

 

Zorlu

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