The Premier League Competition

Is it difficult to enter the giants’ league or to stay there? In many sectors in Turkey, it is becoming increasingly difficult to enter the premier league. The gap between the leaders and those who play in the second league is becoming wider. The white goods and retail sectors are amongst those where it is most difficult to enter the premier league. In order to catch the top three in the white goods premier league it is necessary to have a market share of at least 11 percent. In retailing, companies have to have a market share of 9 percent to get close to the three at the top. In the automotive sector, the members of the premier league have about twice as large a market share as those which follow them.

Many companies in different sectors as trying to enter the giants’ league because of economies of scale and the pressure of intense competition. But it is very difficult to get into the premier league and stay there. For example, in the white goods, automotives and fuels sectors, the gap between the members of the premier league and those who are trying to join them is becoming wider. In order to get into the premier league in retailing, you need a market share of at least 9 percent. To achieve this, even the small supermarket chains are looking to grow through acquisitions. In foodstuffs, each firm is focusing on specific products and trying to preserve its leading position in this field.

Capital identified the breakthrough market shares in different sectors, both for the companies in the premier league in these sectors and those who want to join them in the premier league. We learned the difficulties of this maintaining this status from the players in the premier league and the plans of executives in companies who want to move up to this league.

Elçin Cirik
ecirik@capital.com.tr