Published On: Wed, Jun 21st, 2017

A look at the Turkish market: The secret of leading companies in their sectors

As in all countries with free market economy Turkey has experienced a tough competition between private sector companies for many decades now. Some have not been able to stand the ruthless rules of economy and left the market while some others have enjoyed the results of a successful performance and secured their positions as leaders in their business sectors.

Among the second group are companies such as Arçelik, Assan Aluminum, Turkish Tractor, Marmara Birlik, LC Waikiki, Vakko, Beymen and many more. These companies have been in the lead in their sectors for many years now and obviously have no intention of handing over the flag to their competitors. When asked about the reason for their success the answer is quite plan and equally satisfactory: They have learned to value innovation and maintained customer-focused approaches for a long time. Most importantly, they have managed to work harder and stay fit as compared to their competitors. No doubt, they still do… And the future goal of these “leader” companies is to enlarge the gap with their competitors…

As referred above there are many strong brands in Turkey that have been net leaders in their sectors for many years. Undoubtedly, in the last 10-15 years, new successful brands have been added to the existing ones such as LC Waikiki in ready-to-wear sector, Kinetix in sports shoes sector, BİM in supermarket sector and many more.

It is not a coincidence that these brands have been able to keep their positions for such a long time. Uninterrupted leadership requires hard work, good planning, innovation and customer-focused operation. When we look into the issue to understand the influential factors behind the picture we come up with following: Large gaps between companies are difficult to see in sectors with dense competition whereas in sectors where there is a strong penetration by new companies the leader can enlarge the gap with its competitors.

It is observed that many companies which are net market leaders have had a very stable profile about leadership. For instance, İşbank has been the market leader in banking sector for almost a century, now.  Ülker and Koska have been leaders in chocolate and dessert sectors for over 50 years. Arçelik on the other hand has been the leader in the market for durable consumer goods for 60 years etc. When asked about their success the mamagers of these companies say that the investment made in innovation and R & D is among the most important factors that provide sustainable leadership in the market.

As far as technology companies are concerned in specific, it is considered to try to catch the technology before late not to lose competitive advantage

On the other hand it goes without saying “first in the market advantage” is very vital, provided innovation and new technologies are always followed regardless of how old the company is

To recap, Turkish market is a very difficult market as it is price oriented with endless alternatives for a consumer group hungry for new technologies and goods.

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