global business 11

Zip-6 currently has a presence in the United States, Canada, Mexico, Brazil, and in Korea (through a licensing agreement). While the firm has investigated other large Asian markets as potential expansion targets, Ravi’s Iranian heritage has influenced him to desire Zip-6 to have a presence in the Middle East. After examining and rejecting several Middle Eastern countries as potential expansion targets, Ravi has determined that the nation of Turkey offers acceptable economic and political stability. He and Keith have visited that nation and held discussions with officials of Interbil Spirits Group, a large beverage firm and the producer of SoleSports Drink, a regional best-seller. Interbil has offered Zip-6 a joint licensing agreement in which Interbil would manufacture and distribute Zip-6 in the Middle East and Zip-6 would manufacture and distribute Sole in its areas of operation. Both Ravi and Keith are not comfortable with this arrangement but are convinced this country offers great potential for Zip-6 products. They have quietly conducted marketing tests there and these look promising. Based on your reading of Chapter 12, and your examination of such websites on Turkey:

• Go to the U.S. Central Intelligence Agency (C.I.A.) websitehttps://www.cia.gov/index.html and use their World Factbook to search for information on Turkey
• Michigan State University globalEDGE™ website:http://globaledge.msu.edu/Countries/Turkey

1. What entry approach would you advise Ravi and Keith to use to gain entry into the Turkish sports drink market and why?
2. What are some advantages and disadvantages of the approach you have chosen (above)?