Competitive analysis of Turkish wine industry: A research on tekel

ABSTRACT The purpose of the study is to identify the factors determining Turkish wine industry's competitive advantage analyzing factors driving competition. Identifying the sector's current situation, it is supposed to led that the sector might use the powerful areas it has more effectively and might monitor it's weak points more carefully. In the end of the study, the strategies proper for the Turkish wine sector's competitive advantage is to be determined. The study consists of three chapters. Under first chapter, world wine industry's past, present and future is examined. In the last decade, wine industry witnessed important changes. Over centuries, European countries played the dominant role in the wine industry. Bu today, wine producers from the New World countries achieve market share, despite the Old World. In this section, general concepts of wine, trends in the world wine industry and major producers and consumers of wine worldwide are mentioned in order to define the wine world. The purpose of the study is to determine the competitive advantage of the Turkish wine industry. The second chapter examines the concepts of competition and the theories in the literature. Porter's Five Forces Model, which is going to be used in the field study in the following chapter, is also discussed in this chapter. Within the second chapter, later on, Turkish wine industry's current situation is examined. Production and consumption patterns in Turkey and firms operating in Turkey are mentioned. SWOT analysis, regarding to Turkey can also be found in this chapter. The last chapter contains the field study performed on Tekel's wine producing plants in order to determine the forces driving the competition in the Turkish wine industry. Porter's Five Forces Model is used to analyze the findings. The main factor determining the competitive advantage of the Turkish wine industry is found to be viniculture. Viniculture is the area that the industry is the most powerful and also the weakest. So it is strategies based on viniculture that may increase the competitive advantage of Turkish wineries. Especially, it is red wine that the sector's competitive advantage relies on. Sector is found to be incompetent regarding to white wines. In the end of the study, it is determined to be strategies focused on red wines that the Turkish wine producers gain competitive advantage viu