Time to take “opportunity share” rather than market share?

Peter Drucker, Gary Hamel, Jack Trout and others… All of these important management and marketing gurus believe that the era of focusing on market share is over. They think that companies must now look to opportunity share. They believe that global giants such as GE, Sears and IBM are experiencing difficulties because they are not focused on opportunities. Companies such as Schwab, e-bay and Nike which are utilizing opportunity share are continuing to benefit in every area. A study of market opportunities in Turkey over the last ten years shows that it is companies such as Arçelik, Enka, Hürriyet and Fortis which have been outstanding in terms of their ability to sniff out opportunities on the market.

The rules of management change with each passing day. In the past everyone used to focus on market share. Indeed, people used to think that double digit growth was one of the golden rules. In fact, market share on its own does not mean anything any more. Management gurus are of the same opinion. Gary Hamel, who has written many books on administration and management, says that focusing only on market share means missing opportunities in the sector. He believes that it is more meaningful for companies to be good at sniffing out market opportunities rather than focusing on market share. The famous management guru Peter Drucker thinks that executives should focus on opportunity shares rather than problems. He believes that it is impossible to do this if one focuses only on market share. If they are to increase market share companies need to be to continually immersed in internal and external problems. But it may be more fun for a company to concentrate on opportunities.

The famous marketing guru Jack Trout says that there is no relationship between success and working with the right people, behaving in the right way, using the right instruments or creating the right organization. “All of these can help to increase business but not to take one to the summit,” says Trout, who believes that success comes from making the most of opportunities and using the right strategy.

In general, opportunity share means companies seeing spaces in the market and changing according to investments in these areas. Concrete calculations are extremely simple. Hamel says that it is enough to study the changes in companies’ market value over the last ten years. If the company performs above the market average in this regard then it means that the company has performed well in terms of opportunity share.

Capital conducted the first ever study in Turkey of the leading companies in this field. The results that emerged were not surprising. The companies recently brand value, growth and profitability we have frequently heard companies, with market value above the sectoral average, take the first ranks in the opportunity share table.

Strategy for creating global brands
For years Arçelik has been meticulously following consumer needs and giving priority to customer satisfaction. Over the last ten years it has been a successful example of a company which has appreciated by more than the sectoral average, increasing its market value by 306 percent. Arçelik’s success is based not just on its activities on the domestic market but also on its successful operations aboard. Arçelik believes that sale of brand products has an impact on productivity and profitability and its most important recent strategy has been to increase its brand name sales on international markets.

Arçelik sells around 75 million products worldwide and today has a total of nine brands on domestic and foreign markets, namely: Arçelik, Beko, Blomberg, Elektra Bregenz, Arctic, Leisure, Flavel, Altus and Arstil. The company sells goods and services in more than 100 countries all over the world, employing a total of 11,000 employees in Turkey and abroad, with eight separate production facilities and 12 companies operating overseas. At the end of 2005 it succeeded in raising its turnover to €3.1 billion.

The first company to establish branches in Anatolia
When one looks at the changes in the market value of the companies in the leasing sector over the last ten years then Finans Leasing leads the way by a considerable margin. The average rate of growth in the sector as a whole is 442 percent. But Finans Leasing has grown by 1779 percent and the investments it has made in technology and information technology have enabled it to steal a march on its rivals. Finans Leasing General Manager Murat Alacakaptan says that ever since the day it was founded the company has targeted being one of the companies which drives the development of the sector. He notes that, in this regard, it was the first firm to establish branches in Anatolia. He says that through its regional representatives it has made both leasing and its companies well-known in these regions.

The company’s decision in 2001 to change its customer profile played a major role in enabling Finans Leasing to increase its opportunity share. The company was the first in the sector to abolish the lower limits and this enabled it to reach SMSEs before its rivals.

Competitive advantage the most important strategy
In the last ten years the market value of companies in the media sector has risen by an average of 592 percent. Hürriyet Gazetecilik has increased its market value by 1394 percent, a performance above the sectoral average which has enabled it to move ahead of its rivals. Hürriyet Executive Board Chair Vuslat Doğan Sabancı says that competition in the sector is very intense and that, in a market in which competition is so fierce, consistency is the key to success. “We have continually invested in consistency,” notes Sabancı, adding that Hürriyet has given considerable importance to differentiation.

Sabancı says that a major brand has to differentiate: “Just as a person cannot be everyone, so a brand should not be everything. My experience in the sector has shown me that a brand should always invest in its strengths. This makes differentiation easier. This is what we have succeeded in doing at Hürriyet,” she says.

COMPANIES WITH MARKET VALUE ABOVE THE AVERAGE

BANKING Change in Market
Value 1996-2005 (%)
Finansbank 4198
Fortis 2481
Abank 1295
Sectoral Average  685
INSURANCE  
Aviva Sigorta 1927
Aksigorta 952
Anadolu Sigorta 504
Sectoral Average 514
LEASING-FACTORING  
Finans Fin. Kir. 1779
Yapı Kredi Fin. Kir. 906
Garanti Faktoring 331
Sectoral Average 462
HOLDINGS  
Doğan Holding 1478
Deva Holding 785
Borusan Yatırım Pazarlama 556
Sectoral Average 273
CEMENT  
Mardin Çimento 1545
Oysa Çimento 1226
Ünye Çimento 1202
Sectoral Average 420
TEXTILES  
Tümteks 351
Sönmez Pamuklu 134
Sönmez Filament 95
Sectoral Average -18
FOODSTUFFS 
Ülker Gıda 1190
Kent Gıda 747
Pınar Süt 486
Sectoral Average 323
CONSUMER DURABLES  
Vestel 340
BSH Ev Aletleri 309
Arçelik 306
Sectoral Average 253
RETAILING  
Tansaş 1029
Gima 861
Boyner Mağazacılık 251
Sectoral Average 193
TOURISM  
Marmaris Martı 644
Marmaris Altınyunus 435
Petrokent Turizm 329
Sectoral Average 133
MEDIA  
Hürriyet Gazetecilik 1394
Doğan Gazetecilik 592
Sectoral Average 592

Şeyma Öncel Bayıksel
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