Arab Open University
Tutor Marked Assignment (TMA)
Academic Year 2013-2014
Program: Business Studies
Course Title: Making Sense of Strategy 11
Student ID: 100649
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The Turkish leather industry
"The leather industry is one of the oldest industries known to mankind. In particular, the leather has emerged as a very important raw material needed in all areas in the civilizations of the world, especially in Mesopotamia. Our earliest ancestors used skins to protect their bodies. The leather is made from the skin of an animal, through a process known as tanning. This process protects the skin that would otherwise quickly rot or decay. Today, the leather industry is scientifically based. The search is always performed to ensure that the product is improved by using the latest technology to meet the needs of modern times. Diamond model, developed by Michael Porter, was used to identify the regional competitiveness of the Turkish leather industry.
"In 1990, Porter developed Diamond Model while explaining why some countries are more competitive than others are. The model analyzes components of the global competition in a systematical framework in order to introduce the indicators of national competitive advantage (Bulu, Eraslan and Kaya, 2006). Diamond Model also embodies a sector's total competitiveness position. However, he also underlined that in some situations those factors might inhibit sustainable growth if they are abundant. Porter asserted that nations could form their own advanced factor pools such as well-qualified labor force, powerful technology, knowledge, and culture, and he added that this is the case for specialized conditions (Porter, 1990; Neven and Dröge, 2001:4-5; Bulu et al., 2004: 4). The model designed like a diamond defined four factors affecting the competitive advantage. These basic variables are factor conditions, firm strategy, and rivalry structure, demand conditions, and related and supporting industries, each placed in a corner of the diamond. Diamond Model identifying the competitive advantage introduces a system; therefore, basic variables not one by one but collectively identify the competitive advantage. In other words, factors placed on each corner of the diamond, affect each other. Therefore system acts like a dynamic structure (Bulu, Eraslan and Kaya, 2006). Diamond model is applied for the purpose of identifying the competitive positions of sectors and countries by representing the effect of one factor on the other three factors (Bulu, Eraslan and Kaya, 2006). Demand conditions affecting the competitiveness of companies requesting new innovations. Besides high demand...
Bibliography: Bektas, B., (2006). Deri ve Deri Mamülleri, Dis Ticaret Müstesarligi Ihracati Gelistirme Etüd Merkezi (IGEME).
Bulu, M., Eraslan, I.H., and Kaya, H., (2006). Türk Elektronik Sektörünün Rekabetçilik Analizi, Istanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi, Sayi 9, Yil 5, Bahar.
Bulu, M., Eraslan I.H., and Sahin, Ö., (2004). Elmas (Diamond) Modeli Ile Ankara Bilisim Kümelenmesi Rekabet Analizi, 3. Ulusal Bilgi, Ekonomi ve Yönetim Kongresi, 25-26 Kasim, Eskisehir.
Erkan, H., and Erkan, C., (2004). Bilgi Ekonomisinde Teori ve Politika, 3. Ulusal Bilgi, Ekonomi ve Yönetim Kongresi, 25-26 Kasim, Eskisehir.
leather turkish brand, (2012), leather heritage,
( http://www.turkishleatherbrands.com/heritage.php ) acceced on 9/5/2014.
Pettus, M.L.; Marilyn, m.m.; 2008, International Journal of Business & Management Science, Jul2008, Vol. 1, Issue 1, p113-123. 11p, 1 Diagram, 1 Chart.
Porter, M., (1990)
Öz, Ö., and Pamuksuz, M.K., (2003). Understanding Competitiveness: The Case Of The Turkish White Goods Industry, European Applied Business Research Conference, Italy, Venice.
Undersecretariat of Treasury (2001), Reform Programme for the Improvement of the Investment Environment in Turkey (unofficial translation), Ankara.
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