Vehbi Koc Case Brief
Vehbi Koc and the Making of Turkey’s Largest Business Group:– CASE BRIEF
Harsha Vardhan Reddy Tamatam (Section C1)
E-mail: harsha.tamatam@global.t-bird.edu
ID: 1461005 What drives Vehbi Koç in establishing his businesses? What motivates him? * The wealth and lifestyle differences between Muslim Turks and non-Muslims around him motivated him to become a tradesman. * The lifestyle differences between the people living and Istanbul and in Ankara pushed him to be more successful * Vehbi followed the market trend when entering a new line of business. For example as and when he noticed that leather and construction business is on an ascent, he entered into those business segments. * Difficulties in importing key parts, as well as import restrictions, motivated Vehbi Koc to produce necessary components for the white-goods within Turkey. Some of the new businesses that Koc established are in line with back ward integration strategy. * In one instance government’s failure in providing cheap foodstuff to public motivated him to purchase 75% stake in Migros Turk, a Swiss Super market subsidiary in Turkey. * Vehbi also felt that the company that enters any market in Turkey first will have success over its competitors, which motivated him to look for business options in automobiles and Trucks segment. * Desire to move into Istanbul market. What were the most important factors for Vehbi Koç to initially develop his businesses up to the 1950s? The most important factors for Vehbi Koc to initially develop his businesses up to the 1950s are as following: * A small incident about the sheep cheese that made Vehbi to learn that he should always thoroughly investigate a new business before entering it. * The establishment of Republic of Turkey in 1923, which made efforts to create business class by giving tax allowances and exemptions, awarding customs exemptions for importing industrial machinery and apparatuses,
Harsha Vardhan Reddy Tamatam (Section C1)
E-mail: harsha.tamatam@global.t-bird.edu
ID: 1461005 What drives Vehbi Koç in establishing his businesses? What motivates him? * The wealth and lifestyle differences between Muslim Turks and non-Muslims around him motivated him to become a tradesman. * The lifestyle differences between the people living and Istanbul and in Ankara pushed him to be more successful * Vehbi followed the market trend when entering a new line of business. For example as and when he noticed that leather and construction business is on an ascent, he entered into those business segments. * Difficulties in importing key parts, as well as import restrictions, motivated Vehbi Koc to produce necessary components for the white-goods within Turkey. Some of the new businesses that Koc established are in line with back ward integration strategy. * In one instance government’s failure in providing cheap foodstuff to public motivated him to purchase 75% stake in Migros Turk, a Swiss Super market subsidiary in Turkey. * Vehbi also felt that the company that enters any market in Turkey first will have success over its competitors, which motivated him to look for business options in automobiles and Trucks segment. * Desire to move into Istanbul market. What were the most important factors for Vehbi Koç to initially develop his businesses up to the 1950s? The most important factors for Vehbi Koc to initially develop his businesses up to the 1950s are as following: * A small incident about the sheep cheese that made Vehbi to learn that he should always thoroughly investigate a new business before entering it. * The establishment of Republic of Turkey in 1923, which made efforts to create business class by giving tax allowances and exemptions, awarding customs exemptions for importing industrial machinery and apparatuses,