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Competiveness among apparel manufacturers in Istanbul: An industry analysis (Management Project)

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.
Source: Uppsala University
Author: Ahlqvist, Pontus | Andréasson, Carl

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