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US/Turkey Market PerceptionSurvey

Prepared for the Turkey US Business
Partnership Alliance
Presented by Robert Otto Director CARANA
Corporation www.carana.com August, 2006
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AGENDA

• Overview, Objectives
• High Level Summary of Survey Questions
• Overall Themes that Emerged
• Where to Go for More Information

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OVERVIEW

• Rapid Investor and Market Perception Survey (of
  US firms) for these Markets/Products
• Automotive Components
• Software Development
• Marble/Natural Stone
• Furniture
• Lighting Fixtures
• Interviewed 75 leading US firms/15 in each
  sector/product group.
• Where possible, interviews were held with
  international players currently doing business
  with Turkey, or who were familiar with Turkey.

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Survey Questions

• What are current market trends (volume, sourcing,
  sales channels, buyer preferences, and industry
  developments)?
• What are industry success factors?
• Perceptions in the US of Turkish firms and
  especially SMEs Their ability to meet buyer
  needs, international competitiveness?
• Given market trends and industry perceptions,
  what are realistic opportunities for Turkish SMEs
  to penetrate and/or expand their market presence?

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Emerging Themes from the Surveys
Contributing Factors to Export Costs

• Reduce Information Gaps in the US Market
• Those who know Turkish Partners are Impressed
• Need to Identify and Develop Niche Markets
• Marketing will be Key to Success for Turkish
  Firms
• Continuously Improve Quality, Costs, and Delivery
• US Market Not Always the Best Fit for Turkish
  SMEs
• SMEs Might Need to Focus on Collaborating
  with/Marketing Through Larger Turkish Firms

INSERT GRAPHIC TO ADD MAP MAP IS 6.17 TALL
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Reduce Information Gaps in the US Market

• Turkey largely an unknown in terms of potential
  to be a supplier/player within several of the
  markets surveyed.
• Turkish firms were often described as invisible
  or off the radar screen.
• Turkish Industry (for sectors surveyed) needs to
  get the word out or show that Turkey has a
  story to tell.
• Concerted, collaborative promotional campaigns in
  the US.
• Regular participation in key industry-specific
  forums in the US.

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Strengths

• Modern Industrial and Knowledge Centers
• Excellent Education/Training Facilities
• Large, Well-Trained Workforce
• Sharply Increased Domestic Access to Telecoms
  Facilities
• Where Known, Turkish Products are Regarded as
  High Quality with Excellent Workmanship
• Where Known, Turkish Partners are Viewed as
  Mostly or Strongly Reliable

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Weaknesses

• Relatively High Cost of Labor, Energy
• Turkey Will Have to Adapt to US Market Needs
• Language Barrier (Americans Mostly Monolingual)
• American Businesss Concern about the
  Neighborhood (Iraq, Syria, Iran, Israel)
• Turkey is an Unknown Quantity in Many Sectors

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Opportunities

• Reduce Intermediation Costs
• Export Higher Value-Added Products
• Continue Growing the Knowledge-Based Labor
  Segment
• Get the Word Out About Turkeys Goods and
  Services (in a Focused Way)
• Build Sector Representation to US Partners
• Turkish Diaspora/Chamber (www.turkishuschamber.org
  )

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For More Information

• For More Detailed Information
• http//traderoots.org/turkeydetail.asp
• To Receive Copies of the Surveys
• Email botto_at_carana.com and specify sector