Everyone After “Protection”!

“It is extremely difficult to preserve market share in the Turkish automobile market when there is intense competition and more than 50 international brands,” says Fiat Brand Director Okan Baş. Indeed, the automotive sector is the one in which there is the bloodiest fight for market share.

Today, in many long-established sectors in Turkey, the leading players are looking not to increase but to protect their market share. Under the prevailing circumstances, where there signs of a decline in consumption, it is difficult in the short-term to increase market share, and it is regarded as an expensive process without any guarantee of success. For this reason, in banking, fuel, automotives, and white goods all of strategies are based on maintaining the leadership. The sectors in which companies are focusing on increasing market share are those which are regarded as not yet being saturated, such as computers and mobile telephones. In the same way, when one looks at sub-categories, companies which are newly entering the market in cleaning paper products and hygienic are increasing market share while leading brands are fighting to protect theirs.

Jack Trout / Marketing Expert
“It Is Difficult To Acquire Market Share In Well-Established Sectors”

Act Before The Competition
 If you are leader in a field, then you should preserve your leadership, whatever the cost. The basic strategy of a leader should be to internalize every new idea, and you should do this even if these new ideas appear to run contrary to your main branch of business. And you should also know to quickly incorporate good ideas and exclude your rival.

Which Sectors Are More Difficult?
 In sectors which require long-term planning and larger investments, it is more advantageous to protect one’s leadership. For example, leaders in sectors such as automotives, retailing, pharmaceuticals and large food stores are better positioned than their rivals. To give some company examples: BMW, Southwest Airlines, Wal-Mart, Merck and McDonalds are examples of successful leaders in their categories.

Elçin Cirik
ecirik@capital.com.tr