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US/Turkey Market PerceptionSurvey

Presented by Robert Otto Director

CARANA Corporation

www.carana.com

August, 2006

Prepared for the Turkey – US Business Partnership Alliance

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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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• 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?

Survey Questions

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INSERT GRAPHIC TO ADD MAP

MAP IS 6.17” TALL

Contributing Factors to Export Costs

Emerging Themes from the Surveys

• 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

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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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• 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

Strengths

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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 Business’s 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 Turkey’s 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@carana.com and specify

sector