Glass Industry in Turkey

When crosspatch constancy in Turkey is analyzed, it is discovered that at that place ar middle and small sized firms, work places at workshop levels in very limited numbers and a ascendant producer, Trkiye ie ve Cam Fabrikalar Topluluu. More than 90% of the annual drudgery of commercialize is met by iecam. Although there are no faithfulness and arbitration barriers to enter to the looking glass market, firms hesitate to enter since glass diligence requires continuous fruition with high capacity and continuous investment and unsanded materials in Turkey are not in high prize and the amount of their reserves in Turkey are declining day by day, namely the perseverance is becoming much costly and risky.Furthermore, diminishing returns in the short-run augment borderline cost of glass production as the necessity of innovation and continuous production makes producer buy more technological and faster machines and equipment plainly the staff cannot use them efficiently f or a definite period, which increase total cost and marginal cost merely not brings about same increase in output levels. rectify in quality of raw materials also explains the diminishing returns and rising marginal costs.The buyer range of glass market is extensive as glass is not only used for decoration purposes and used as kitchen utensils but also it is used as an input in construction, food, furniture, white goods, medicine, balmy drinks, automotive and electrical-electronics industries. In addition, glass plays an important role in these industries as the producers of these industries cannot substitute any other input for glass in about parts of their production processes.The part of glass market in Turkey, iecam can determine the price or quantity of its products. As iecam is a price maker, not a price taker it is more probably that it bequeath try set a price resulting in usefulness maximation which is not too high or too commencement and makes marginal revenue eq uals to marginal cost. It worths mentioning that iecam can determine every price or quantity, not both of them. When one of them is set, the other will be determined by request curve. However, price and quantity are not the sole components that iecam can play with. iecam tries to bring forth the trend in technology in abroad by establishing joint-ventures with contradictory firms in order to innovate itself, improve the product design and product diversity.In addition, as a result of its marketing strategy, iecam sells its trifles and kitchen utensils in Paabahe Stores which are located in strategic places of stanbul, Ankara, zmir, Adana, Antalya, Bursa, Mersin, Denizli, Bodrum, and Marmaris. iecam also seeks an expansionary policy in abroad. It has two firms in Bulgaria and Georgia and representative offices in Germany, Russia, China, Hong Kong and Austria. Though iecam states its strategic goal as tutelage the leading position in the country, increasing foreign sales, climbing the ranks of glass production statistics and producing in an environmentally friendly way, it is clear that the main(a) objective of a firm is to maximize its profits as the possibility of firm implies and the objective of iecam is to maximize its profit in the short-run by trying to equate its marginal revenue and marginal cost. iecam is not afraid of possibility of sharing its short run economical profits with the other firms since it is the sole firm in glass industry in Turkey. All in all, when we analyze glass industry in Turkey on the basis of number of sellers, cost conditions, number of buyers, demand conditions, strategic variables, objective function and expectation of rivals reactions, we can conclude that the market structure of glass industry is monopoly.iecam is the monopolist of glass industry since it is the sole producer in the marker except for a fewer enterprises but there are many buyers of its products, its marginal costs increase due to diminishing returns in the short-run, it can use price, quantity, product design, diffusion channels as strategic variables, the objective of the firm is profit maximization in the short-run and it has no expectation of rivals reaction as there is no rival in the industry.