Turkish/Portuguese commercial relations

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Turkish/Portuguese commercial relations
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Facts About Portugal

• Location South-western Europe, Bordering the
  North Atlantic Ocean, West of Spain
• Size 92 500 Km2
• Total Population 10 566 212
• GDP - Real Growth Rate 1.1
• GDP - Per Capita Purchasing Power Parity -
  17,900
• Inflation Rate (Consumer Prices) 2.1
• Labour Force 5.48 Million
• Unemployment Rate 6.5

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Economy overview
Portugal Has Become a Diversified and
Increasingly Service-based Economy Since Joining
the European Community in 1986. Over the Past
Decade, Successive Governments Have privatised
Many State-controlled Firms and Liberalized Key
Areas of the Economy, Including the Financial and
Telecommunications Sectors. The Country Qualified
for the European Monetary Union (EMU) in 1998 and
Began Circulating the Euro on 1 January 2002
Along With 11 Other EU Member Economies. Economic
Growth Had Been Above the EU Average for Much of
the Past Decade, but Fell Back in 2001-04. GDP
Per Capita Stands at Two-thirds That of the Big
Four EU Economies. A Poor Educational System, in
Particular, Has Been an Obstacle to Greater
Productivity and Growth. Portugal Has Been
Increasingly Overshadowed by Lower-cost Producers
in Central Europe and Asia As a Target for
Foreign Direct Investment. The Government Faces
Tough Choices in Its Attempts to Boost Portugal's
Economic Competitiveness While Keeping the Budget
Deficit Within the eurozone's 3-of-GDP Ceiling.
Natural Resources Fish, Forests (Cork), Iron
Ore, Copper, Zinc, Tin, Tungsten, Silver, Gold,
Uranium, Marble, Clay, Gypsum, Salt, Arable Land,
Hydropower
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Communication infrastructures

• Railways Total 2,850 Km
• Highways 17,135 Km
• Waterways 210 Km
• Pipelines Gas 1,099 Km Oil 8 Km Refined
  Products 174 Km
• Ports and harbours Aveiro, Funchal (Madeira
  Islands), Horta (Azores), Leixoes, Lisbon, Porto,
  Ponta Delgada (Azores), Praia da Vitoria
  (Azores), Setubal, Viana Do Castelo
• Airports - With Paved Runways 42

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Increase in economic relation for community
members
When inside an economic block economic relations
are boosted, meaning that companies from within
the same commercial zone privilege those markets
when selling or buying products. This happens
because the costs attached to the community trade
(time and money), are normally inferior to those
happening outside the free trade zone.
Portugal an investment for the future
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Future evolution
To be able to know the future tendencies of any
reality is the best way to be prepared to face
the challenges that are to unfold. Its the best
way to be one step ahead of the present and to be
able to make decisions that in a time perspective
allow a decision to be made not only on the
present reality but also on a fairly predictable
future scenario. With this approach we make sure
that it is not the idea of present gain that
mostly conditions the decision but that of
achieving the biggest profit. Nevertheless those
two approaches do not have be exclude each other.
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Buy well sell better
Commerce as two distinct directions buying and
selling, and both of them are of the utmost
importance. So as to do good business companies
must buy good and sell even better. This means
buying high quality cheap products and afterwards
place those products, preferably in markets where
margins are high.
Price evolution
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Competitors
In our way to increase selling it is important to
know against whom we are competing, who is
working in the same market as we are, so as to
assess better our comparative advantages, predict
future competitive behaviours and to easily
differentiate and "work" our differences.
Portuguese main suppliers are Spain 29.3,
Germany 14.4, France 9.7, Italy 6.1,
Netherlands 4.6, UK 4.5 Portuguese main buyers
are Spain 24.8, France 14, Germany 13.5, UK
9.6, US 6, Italy 4.3, Belgium 4.1
Competitive scenario in Portugal
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Buy well
Having good clients is half of the way to a
successful strategy. To by well one company must
have access to a large number of suppliers so
that their dependence from a specific supplier is
reduced. This approach also helps increasing
negotiation power caused by the increased choice
of options. It also pushes delivery times into a
reduction.
Search for potential suppliers Selling patterns
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Sell even better
There is no use in producing good products if its
not possible to sell them. The search for
profitable markets is one of the leading vectors
in the development of any company. There are two
major approaches companies can choose when
thinking about placing their products price
leaders(selling at the smallest price),
differentiation(bet on quality, design, time,
etc.) The best option to choose depends on many
factors such as the kind of good, the consumer's
behaviour, the competition level, the companies
capability, etc.
Search for potential costumers Buying patterns
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Critical success factors
A good assessment of the critical success factors
allows us to detect patterns of behaviour and
"work" them by focusing most of our efforts on
these variables, avoiding a undesired dispersion
of resources. To identify the critical success
factors it is needed to answer the fallowing
questions
Why should they choose Turkish products instead
of any others? Which characteristics do
Portuguese costumers value the most, (price,
quality)? This is, what are the key factors that
make companies choose one instead of
other.
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Critical success factors
On the other hand one must know which efforts
shall be made to show Turkish companies qualities
(to make obvious to Portuguese companies that
Turkish products are a good choice). In other
words
Which aspects of the Turkish companies should be
promoted in Portugal? How can we attract
clients? What distinguishes the most successful
companies trading with Portugal from the others?
Which are the relevant competitive factors?
A thorough answer to these questions enable us to
create a good picture of Portuguese reality.
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Market analysis
The distribution of the Portuguese companies
according to its sector of activity is as
follows Companies working on the primary
sector 2.8 Companies working on the
secondary sector 26.6 Companies working on
the treciary sector 70.6
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Turkish/Portuguese commercial relations
Turkey Exports - commodities apparel,
foodstuffs, textiles, metal manufactures,
transport equipment Imports - commodities
machinery, chemicals, semi-finished goods, fuels,
transport equipment Portugal Exports -
commodities clothing and footwear, machinery,
chemicals, cork and paper products, hides
Imports - commodities machinery and transport
equipment, chemicals, petroleum, textiles,
agricultural products
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SWOT analysis to Portugal

• Strengths
• Euro currency guarantees a minimum risk at the
  transaction.
• Good communications, such as roads, ports and
  airports makes easier for companies to carry
  their products there.
• Good purchasing power
• Weaknesses
• Slightly unstable economic environment, with the
  economic community demanding deficit reduction
  measures that might increase unemployment and
  reduce growth in the sort term.
• No autonomous monetary policy.
• Opportunities
• Government plans to boost public investment
• Strong pressure to ease the burocracy.
• Strategical location to access the American
  continent
• Threats
• High unemployment rate (6.5).

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Portuguese imports