Business in Emerging Market

This document discusses the opportunities and challenges of doing business in emerging markets, with a focus on Turkey. It explores the concept of institutional voids and provides a PESTLE analysis of Turkey. The document also discusses different business models and services that can be studied and emulated in the Turkish market. Recommendations and conclusions are provided for businesses looking to enter the Turkish market.

Running head: Business in Emerging Market 1
BUSINESS IN EMERGING MARKET
Student Name
Institution

Business in Emerging Market 2
Table of Contents
Introduction.................................................................................................................................................2
Overview of the SingTel...............................................................................................................................2
1. Emerging market.................................................................................................................................2
2. Identify Institutional Void of chosen emerging market.......................................................................3
2.1 The competitiveness of Turkey..........................................................................................................4
2.2 PESTLE Analysis of Turkey..................................................................................................................4
Political factors....................................................................................................................................4
Economic factors.................................................................................................................................4
Social factors.......................................................................................................................................5
Technological factors...........................................................................................................................5
Legal factors........................................................................................................................................5
Environment factors............................................................................................................................6
2.3 Identified Institutional voids within Turkey.......................................................................................6
3. Business models/products/ services to study......................................................................................7
4. Emulate the business model/products/ services.................................................................................8
5. Recommendations and Conclusions......................................................................................................10
References.................................................................................................................................................12

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Introduction
Overview of the SingTel
Singapore Telecommunications Limited company is as commonly referred to as SingTel
is Singapore’s telecommunication company that provides a mobile network to over 4.1 million
subscribers. The company has many other subsidiaries that also offers telecommunication
services to these subscribers more than any other telecommunication company within the
country. Other services that are also offered by the company include IPTV through SingTel TV
and fixed-line telephony among other services. Singtel through its international business strategy
has formed a network into more than 66 countries spread across the world. Despite this coverage,
the company has not reached some countries that commonly refer to an emerging market. For
instance, the company has reached some emerging market while other it has not reached. Some
of the common emerging markets especially the BRICS where the company has reached include
Russia, India, and China. While some countries such as Brazil and South Africa it has not
reached (Singtel.com 2017).
1. Emerging market
The emerging market can have defined as countries with some attributes as developed
countries though not within the standard of developed countries. These emerging countries that
are potential of becoming an emerging market in the future or were once developed countries in
the past (Guégan, Hassani & Zhao 2014). The two examples of an emerging market are
Indonesia and Turkey which has a high potential for marketing Singtel products. The two
countries are selected the SingTel is currently no operating within these two countries through
the country has a high potential for SingTel investment (Cox 2017).

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There is a number of reasons for choosing Indonesia vs Turkey as an investment option
for SingTel company. Firstly, when considering potential competitors for SingTel, Turkey has
only two telecommunication companies that are also close partners of the Singtel bringing the
possibility of high demand for products and services. This when compared to Indonesia that has
three telecommunication companies operating within the market that are potential competitors.
Secondly, Turkey has a population of 79.81 million as at 2017 population census that is a
potential market for SingTel products and services (Payne 2018). Indonesia, on the other hand,
has an attractive population that is estimated at 264 million as at the year 2017 is shows the
possibility of high demand for telecommunications in Indonesia given that the SingTel company
has only three competitors companies. Thirdly, in Turkey, business licensing is based on equal
treatment as compared to Indonesia where low foreign investment is encouraged at the expense
of the local investment (Marois 2012). In addition, Indonesia has high bureaucracy when doing
business registration and licensing limiting the emergence of many foreign companies (Marco
2018). Therefore, the most attractive market that Singtel can invest in is Turkey being an open
country with equal opportunity for business as compared to Brazil that opposes foreign investors.
2. Identify Institutional Void of chosen emerging market
The institutional void can be described as the emerging market term for lack of
intermediaries in the market that in return favors investment into the sector. The term was
developed by Khanna and refers to limited intermediaries such as market research and credit card
systems. The intuitional void can be identified based on the competitiveness of the country and
external analysis of the business environment of the country (Meyer & Peng 2016).

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2.1 Turkey Institutional gap
According to the report (Trading Economics 2019) on the competitiveness of Turkey, the
country has been ranked 61 in the world out of 140 countries as of 2018 World Economic Forum
ranking. Turkey has been expanding in terms of its economic growth over the past few years and
this has largely attributed to the country's foreign investment (FDI) policy. The country has been
encouraging business to invest in the country with more emphasis on ICT companies. Singtel is
an example of an ICT company that can take advantage of Turkey's foreign investment policy.
2.2 PESTLE Analysis of Turkey
Political factors
The country boasts of good political strength that is drawn from liberalization policies
that encourage investment into the country. The export has increased by 10% over the past yeas
due to liberal market and investment policies leading to more foreign development investment
into the country. The only challenge that affects the country is on the Islamic militants that have
in the recent past attack tourist. The terror goups has been hinted to aid in the cyber attacks that
has been witnessed within the country in the recent past (Axiarlis2014).
Economic factors
The economy of Turkey has been expanding at a faster rate given the favorable economic
policies that encourage foreign investments from abroad. Competitiveness Rank in Turkey
averaged 54.75 from 2007 according to Trading Economics (2019). In addition, the country has
been encouraging privatization for government institutions to encourage more investment into
the country. The challenge that is currently affecting the country is the trade deficit that has
resulted in the shrinking of the economy of the country in the past two years. One of the key

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economic determinant is the clean and sufficient energy production that is currently an issue
within the country (Daren2013).
Social factors
Social portions of the country's population are mainly composed of young people and this
is ideal for business that involves young people. Singtel can get more labor from the countries
below 30 years population. Citizens of Turkey value technology as it currently forms a major
part of the business. This is also evidence on the use of data bundle in doing ICT support
business. Lack of trained labor and the high unemployment rate is one issue that can also be
considered by SingTel as it invests in the country. Many citizens are highly consuming mobile
data and the only challenge that the online users within the Turkey are facing is the data bridge
and hackers (Sibel 2016).
Technological factors
Turkey has a country highly invest and encourage companies that invest in ICT
development. Over the past years especially during the 2001-2007 period, the country has its ICT
growth enabling foreign companies to come and invest in the ICT sector. There are two
challenges that highly affect Turkey technological growth and sector and include electricity and
cybersecurity challenges. There still more effort needed to improve on the cyber security and
clean energy production. Therefore, as SingTel prepare to enter the market, these two factors
highly determines the company’s success in the market.

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Legal factors
The country has a comprehensive legal structure that touches all sectors of the economy
including telecommunication, technological and foreign investment. The legal system within the
country is structured to allow licensing of foreign business faster as compared to local business
and this is encouraging foreign investments. The company can, therefore, start a business in 6
days as compared to other countries that it requires more than 43 days to start a business.
Moreover, the government has been trying to develop various legal apparatus to improve
business security especially online transaction and data bridge (Gokhan 2018).
Environment factors
Turkey takes advantage of its rich biodiversity and this has contributed to its ranking of
ninth within the European countries. This has face challenge of pollution majorly emanating
from industries and other human activities. Pollution producing machines and equipment has a
limited chance of being used in Turkey. SingTel being a technology company will have to come
up with pollution free strategy for doing business in Turkey (Gokhan 2018).
2.3 Identified Institutional voids within Turkey
Analysis of Turkey reveals two areas that Singtel can take advantage of to enter the
market and take share. Firstly, the electricity challenges have affected the country for a long time
and is increasingly becoming a technological challenge as many industries are powered by
electricity. The energy generation company has reportedly tries to improve on the electricity
generation quality but there is still some challenges in electricity stability. The country has high
ICT requirement and encourages technology companies to invest in the country and only a few
companies are currently doing technological research in the country. The only challenges that

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most of those companies facing is how to ensure stable electricity and clean energy supply that
can support these companies. In addition, these companies have reported the need to increase the
energy generation as a way to attract more investors in the country. For instance, in the recent
past many studies has been undertaken to improve the country economics. Furthermore, there is
need for companies that incorporate both technologies and sustainability to improve the service
provision.
Secondly, several reports show that the cyber security within Turkey is still low with
cyber-attack being estimated at 24.9%. business experts indicate that over the past five years the
cyber-attacks in Turkey has been on the rising trend with recent statistics showing an increase of
3%. Moreover, there is need for companies that can help improve the cyber security to ensure
business are safe from the cyber-attacks. (Sarrubi 2018). Though the government has tried to
come up with strategy to reduce the cyber security, there is still much that is needed especially
on the telecommunication. This can work if the company offering telecommunication services
such as data bundle can come up with solution to improve the security. One way to reduce the
cyber-attacks is through fast and secure business transaction platform that prevent data bridging
and hacking. This is a good gap for technological firms such as Singtel that are already offering
cyber security solution can enter through the company’s Trustwave subsidiary.
3. Business models/products/ services to study
There are many different business research and development models that are currently
used in business within Turkey. Some of the common business research and development models
that are currently used include institutional build up, joint venture, and the market entry model.

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Firstly, institutional development model involves the development of institutions that will
concentrate on the void that market present. Companies that have identified the gap in the market
such as electricity challenges has opt for finding solution in the building of the institution that
can provide the service required in the market. There are many companies currently developing
institutions such as energy plants to improve on the energy provision. For instance, companies
such as Hanergy Thin Film Power Group has pioneered in provision of solar energy in china and
internationally. The company has form joint venture with many companies to ensure that energy
production is boasted. Some companies have come up with joint strategy where they collaborate
with energy generating plants to improve on energy service delivery. Research by Yipeng (2011)
shows that the many companies especially high-tech institutions in Chinese has form partners so
as to realize service delivery.
Market entry mode is another model that the business many businesses have used to
overcome institutional void challenges present in Turkey. Some of the common methods include
international or global strategy, joint venture, strategic alliances, and turnkey projects. Firstly,
the international or global strategy involves entering the market from a control center that is
based in another country or home country. Secondly, the joint venture is where the company can
use other company's resources that are already established in doing business. For instance, a
company can use research resources of many marketing research companies to conduct
technological research in telecommunication market (Stevens, Xie & Peng 2016). Thirdly, a
strategic alliance is another entry mode that the company can use to overcome the void in Turkey
market. Lastly, the turnkey project is another market entry mode that involves establishing a
project within the country of choice in order to start conducting the research (Pinkham & Peng
2016).

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4. Emulate the business model/products/ services
Singtel has the opportunity to apply various business models that already exist to
overcome the void that has been identified in Turkey's market. Some of the models that Singtel
will be using are the joint venture and blockchain technologies or services.
Firstly, SingTel will venture jointly with other companies within the countries to ensure
that services are provided in a more effective way. One of the company that SingTel will forms
joint venture is the electricity company Elektrik Uretim A.S (EUAS). This will ensure that the
company receives electrity from the electricity generation company of Turkey. Secondly,
SingTel needs to establish its research project or technological center in Turkey where the
company will do research and development. The technological project that SingTel will establish
is mainly the blockchain technologies service. The blockchain services will ensures that
customers are linked with various services and platforms for quicker service provision.
Moreover, the blockchain technologies has been proved to provides a good articulation with
services such as credit cards, bank accounts and others such as cryptocurrencies (Shi, Sun,
Pinkham & Peng 2014).
5. Recommendations and Conclusions
In conclusion, institutional voids play an important role in entering an emerging market
such as Turkey. Doing business within Turkey is structured in a way that is attractive to foreign
investors such as Singtel telecommunication company. Based on the above research and analysis
there are some recommendations that are important for Singtel CEO to used for investing in the
country. Firstly, Singtel needs to come up with an institution that will be tasked to carry out
block chain technologies technological services in Turkey. Singtel can use its FutureNow

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Innovation Centre (FIC) it developed in 2018 to help conduct wider digital transformation
research in Turkey. In addition, the company can also start subsidiary Trustwave that offer cyber
security services in Turkey to facilitate technological development in the country. Secondly,
SingTel will have to form joint venture with some companies within the country in order to enter
the market smoothly. One of the suggested company is the electricity company since the
electricity is a major source of energy that will power the company.
In light of the above recommendations, there are some steps that Singtel can take to
implement this report in order to enter Turkey's market. Firstly, Singtel needs to involves its
researchers in conducting research from various sources before actual location into the country.
Singtel should start a center in Ankara City where a branch of Trustwave will be located and this
should follow business registration and license from Turkey's government. Secondly, Singtel
should establish a joint venture with electricity generating plant in Turkey for electricity boost
and sustainability. Thirdly, Singtel will have to start online and surveys into various technologies
that are within the market. This technology research especially the online market research should
kick-off immediately. Fourthly, findings from research should be used to launch the Singtel
business within Turkey and this will involve inviting other researchers' views. Lastly, the
company launches a business in the country following investment in technologies as
recommended by researchers on the ground.

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