Turkish Car Brand

Turkey has not got its own car brand. Large foreign companies have factories in Turkey. We are doing offshoring. Offshoring simply means having the outsourced business functions done in another country. Namely, taking job sending outside work, sent people for work there.

We have got many different car factory but we are producing foreign brands. Yes we earn money and make profit. However this is not our brand we are intermediately. We work for the other country corporations. We have manufactured for the other countries, at least we should have a one Turkish brand. Last months Prime Minister Recep Tayyip Erdogan met with businessmen in Turkish Manufacturers and Businessmen of Association. The purpose of the meeting: 41th General Assembly. Prime Minister Erdogan talked about very important issue. He said: ‘’ In Turkey, we have not our car brand. You are important and rich business man. I want at least Turkish car brand, for this reason you should begin this subject and establish our car brand. Government will be supportive and encouraging your company’’. And then some companies start the create Turkish car brand. They have started research.


Now, we can do SWOT analysis for 

‘’Turkish Car brand’’

Firstly what is SWOT analysis?
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. This analysis leads to production and business.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.

SWOT stands for the word:

Strengths: characteristics of the business or team that give it an advantage over others in the industry.
Weaknesses: are characteristics that place the firm at a disadvantage relative to others.
Opportunities: external chances to make greater sales or profits in the environment.
Threats: external elements in the environment that could cause trouble for the business.

Letters meaning:

S-O strategies : pursue opportunities that are a good fit to the company’s strengths.
W-O strategies : overcome weaknesses to pursue opportunities.
S-T strategies : idenify ways that the firm can use its strengths to reduce its vulnerabilty to external threats.
W-T strategies : establish a defensive plan to prevent the firm’s weaknesses from making it highly susceptible to external threats.


Let’s do SWOT analysis for ‘’Turkish Car brand’’

*Strengths Aspects and Opportunities

- The European Union and the Customs Union and the harmonization of global technical regulations.
- Proximity to the European market
- Turkey has got lower cost labor force than Europe
- Competitive costs, flexible manufacturing capability
- Competitive supply chain
- High quality standards
- Well-trained skilled workforce
- Partnerships with foreign firms and advanced sub-industry . And ‘’know-how’’ level.
- Potential will be an international production center in the advantage of geographicallocation  
- The Potential of Research & Development design center
- Domestic market potential
- After the global crisis, production centers changed location
- The country has become attractive for new investments
- Research & Development investment incentives and advantages provided by new
- The development of logistics
- Export potential to the global market
- The new vehicle project, at the beginning of the project supply industry will be common


*Weaknesses Aspects and Threats

- Not given sufficient resources to Research & Development
- Lack of sufficient testing center
- The relationship between the main and sub-industry failure at the same time lack of sufficient synergy
- Common design failure  with the lack of firm
- Motor vehicles and parts and components to the low share of local content
- Capacity building and technology decision-makers delay in investment decisions
- High production costs caused by low capacity utilization rate
- Eastern Europe, China and India to take part in new projects with high added value parts perfect
- Qualified human power imbalance of supply and demand
- Problems in foreign markets
- In Turkey import and export procedures have got many bureaucratic procedures
- Technical regulations and related administrative deficiencies
- The height of the tax sale of motor vehicles
- Reduction of tax on motor vehicles, depending on the age of the vehicle
- Fuel oil tax burden
- Second-hand cars in the European Union free movement
- Energy efficiency and environmental law studies and the uncertainties about the new legislation
- Lack of logistics infrastructure
- High inputs
- Inability to obtain necessary raw materials indigenous

Turkey's total capacity above 1.5 million

Now, Let’s look the car sector in Turkey

* Organization name: A.I.O.S
Production site: Kocaeli
In production: Lorry, Van, Minibus
2010 capacity: 13.155
The share of domestic capital(%): 70.6 %

* Organization name: B.M.C.
Production site: İzmir
In production: Lorry, Van, Minibus, Medium-Size Bus, Bus
2010 capacity: 20.00
The share of domestic capital(%): 100 %

* Organization name: Ford Otosan
Production site: Eskişehir
In production: Lorry, Van, Minibus
2010 capacity: 330.000
The share of domestic capital(%): 59 %

* Organization name: Honda Turkey
Production site: Kocaeli
In production: Car
2010 capacity: 50.000
The share of domestic capital(%): 0 %

* Organization name: Hyundai Assan
Production site: Kocaeli
In production: Car, Van, Minibus
2010 capacity: 125.000
The share of domestic capital(%): 30 %

* Organization name: Karsan
Production site: Bursa
In production: Lorry, Van, Minibus, Medium-Size Bus
2010 capacity: 28.000
The share of domestic capital(%): 100 %

* Organization name: M.A.N Turkey
Production site: Ankara
In production: Lorry, Bus
2010 capacity: 1.700
The share of domestic capital(%): 0.1 %

* Organization name: Mercedes-Benz Turk
Production site: Istanbul/ Aksaray
In production: Lorry, Bus
2010 capacity: 18.500
The share of domestic capital(%): 15 %

* Organization name: Otokar
Production site: Sakarya
In production: Lorry, Minibus, Medium-Size Bus
2010 capacity: 8.800
The share of domestic capital(%): 100 %

* Organization name: Oyak Renault
Production site: Bursa
In production: Car
2010 capacity: 360.000
The share of domestic capital(%): 49 %

* Organization name: Temsa
Production site: Adana
In production: Lorry, Van, Minibus, Medium-Size Bus,
2010 capacity: 10.500
The share of domestic capital(%): 100 %

* Organization name: Tofaş
Production site: Bursa
In production: Car, Van
2010 capacity: 400.000
The share of domestic capital(%): 62.2 %

* Organization name: Toyota
Production site: Bursa
In production: Car
2010 capacity: 150.000
The share of domestic capital(%): 0 %
















Bibliography*
- This web sites used for SWOT Analysis Definition
http://www.quickmba.com/strategy/swot/
http://en.wikipedia.org/wiki/SWOT_analysis