Glass Industry in Turkey

When supply effort in joker is break downd, it is observed that there argon middle and small sized trues, give places at workshop levels in very(prenominal) limited numbers and a superior producer, Trkiye ie ve Cam Fabrikalar Topluluu. to a greater extent than 90% of the annual business of trade is met by iecam. Although there atomic number 18 no law and arbitration barriers to project to the frappe market, firms hesitate to enter since glass pains requires continuous doing with mettlesome capacity and continuous investment and in the altogether materials in Turkey are non in high quality and the touchstone of their reserves in Turkey are declining day by day, namely the intentness is becoming more wooly and risky.Furthermore, lessen returns in the short- take on ontogeny borderline toll of glass intersection pointion as the necessity of innovation and continuous production makes producer buy more expert and faster machines and equipment besides the staff cannot using up them efficiently for a definite period, which increase total cost and fringy cost but not brings about aforesaid(prenominal) increase in output levels. lower in quality of raw materials as well as explains the diminish returns and rising marginal costs.The emptor range of glass market is vast as glass is not that used for decoration purposes and used as kitchen utensils but also it is used as an input in construction, food, furniture, white goods, medicine, cracked drinks, automotive and electrical-electronics industries. In addition, glass plays an alpha role in these industries as the producers of these industries cannot rest period any other input for glass in some parts of their production processes.The object lesson of glass market in Turkey, iecam can determine the terms or quantity of its products. As iecam is a impairment maker, not a wrong taker it is more likely that it result try set a price resulting in profit maximisation which is not o verly high or too low and makes marginal tax revenue equals to marginal cost. It worths mentioning that iecam can determine any price or quantity, not both(prenominal) of them. When one of them is set, the other will be determined by demand curve. However, price and quantity are not the resole components that iecam can play with. iecam tries to catch the trend in technology in abroad by establishing joint-ventures with outside firms in order to innovate itself, better the product design and product diversity.In addition, as a result of its trade strategy, iecam sells its trifles and kitchen utensils in Paabahe Stores which are located in strategical 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 keeping the steer posit ion in the country, increasing contrasted sales, climbing the ranks of glass production statistics and producing in an environmentally friendly way, it is snuff it that the primary accusive of a firm is to increase its profits as the possible action 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 shitless of possibility of sharing its short run economic 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 prevision of rivals reactions, we can purpose that the market structure of glass industry is monopoly.iecam is the monopolist of glass industry since it is the sole producer in the soft touch except for a few 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, distribution 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.