Competiveness among apparel manufacturers in Istanbul: An industry analysis

This paper is the result of a minor field study conducted in Istanbul, Turkey, during the period of November and December 2007. The purpose of the paper is to investigate the current business environment for apparel manufacturing in Istanbul. Research was carried out through an industry analysis in terms of competition and potential future development for apparel manufacturers.The research has been carried out through interviews with actors related to the apparel manufacturing segment. Interviewees include five manufacturers, two sourcing agents, one trade organization and one professor with research in the area.Our findings concerning the business environment are based on Michael E. Porters theoretical framework on “How Competitive Forces Shape Strategy”. In the case of Turkish apparel manufacturers this paper concludes how the barriers of entry for new actors are high, unless integrating forward. Additionally in general terms the suppliers have a weak bargaining position while customers are relatively strong in the bargaining process. The rivalry among apparel manufacturers is low, but it can be stated how less differentiated manufacturer experience significant higher level of rivalry. Further on this paper also concludes how these factors not are affected by any substitute products, much due to the broad scope of the study.In respect to these factors a general strategy used by apparel manufactures has been identified as they try to affect the balance of these competitive forces through e.g. differentiation and vertical integration.

Contents

1 INTRODUCTION
1.1 AREA OF RESEARCH
1.2 PURPOSE OF STUDY
1.3 SCOPE OF STUDY
2 TURKISH APPAREL INDUSTRY – A BRIEF INTRODUCTION
2.1 HISTORICAL DEVELOPMENT
2.2 TRADE AGREEMENTS AND THEIR IMPACTS
2.2.1 Multi-Fiber Agreement & Agreement on Textile and Clothing
2.2.2 European Union – Turkey Customs Union
3 THEORY AND DEFINITIONS
3.1 THEORETICAL FRAMEWORK: “HOW COMPETITIVE FORCES SHAPE STRATEGY”
3.1.1 Threat of new entrants
3.1.2 Bargaining power of suppliers
3.1.3 Bargaining power of customers
3.1.4 Threat of substitute products
3.1.5 Competitive rivalry within an industry
3.2 CRITICISM OF THEORY
3.3 DEFINITIONS
4 SOURCES AND METHODOLOGY
4.1 COLLECTION OF DATA
4.2 THE INTERVIEWS – PRIMARY SOURCES
4.3 LAYOUT OF INTERVIEWS
4.3.1 Introductory questions
4.3.2 Questions on vertical forces
4.3.3 Questions on horizontal forces
4.4 SECONDARY LITERATURE – SECONDARY SOURCES
4.5 SOURCE CRITICISM AND RELIABILITY OF STUDY
5 THE APPAREL INDUSTRY OF ISTANBUL
5.1 THE COMPETITIVE ENVIRONMENT
5.1.1 The issue of the high valued lira (YtL)
5.2 THE APPAREL MANUFACTURERS AND THEIR CUSTOMERS
5.2.1 Production volumes of apparel
5.2.2 Cost structure of apparel manufacturing
5.2.3 Relationships and contracts
5.2.4 The value of fast fashion and design
5.3 THE APPAREL MANUFACTURERS AND THEIR SUPPLIERS
5.4 ATTRACTIVENESS OF ENTERING APPAREL MANUFACTURING
5.5 THE VARIANCES OF APPAREL
6 DISCUSSION
6.1 THREAT OF NEW ENTRANTS
6.2 BARGAINING POWER OF SUPPLIERS
6.3 BARGAINING POWER OF CUSTOMERS
6.4 THREAT OF SUBSTITUTE PRODUCTS
6.5 COMPETITIVE RIVALRY WITHIN THE INDUSTRY
7 CONCLUSIONS
8 SPECULATIONS ON FUTURE DEVELOPMENT AND EXTERNAL COMPETITION
9 REFERENCES
9.1 INTERVIEWS
9.2 REPORTS
9.3 ARTICLES
9.4 THESES
9.5 LITERARY WORK
9.6 WEBPAGES

Author: Ahlqvist, Pontus,Andréasson, Carl

Source: Uppsala University Library

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