Türkiye merkezli işletmelerin yurtdişinda üretim tesisi kurma stratejisi: misir’da hazir giyim üretimi örneği
Investing Abroad Production Facility Strategy of Turkey Based Enterprises: Ready-Wear Production in Egypt Sample

Summary/Abstract: Businesses, that take the realities of the competition world into account, conduct various researches and determine new strategies in order to gain advantage. One of the strategies in this context is to establish a production facility abroad. This strategy is also implemented by many ready-wear businesses in Turkey. Production businesses aim to use the positive perception of the concept of Turkish goods in the market, to reduce the current unit product cost, and therefore to compete on more favorable terms, instead of leaving Turkey completely. One of the countries where the labor-intensive ready-wear industry implements the strategy is Egypt, especially due to the low minimum wage. The main purpose of this study is to determine and compare the production cost of a t-shirt in Turkey and Egypt over 9 variables. As a result of the evaluations made within the scope of the study, it was determined that while the same t-shirt was produced for $2.37 in Turkey, it was produced for $1.90 in Egypt. As a result of the study, suggestions were made to close the cost disadvantage of around 20%, which cannot be ignored in competition. The first recommended practice is to implement cost-reducing policies in Turkey and to prevent domestic capital from going abroad. With the possibility that the implemented policy and cost variables can change easily, the second long-term and more constructive suggestion is to open a production facility abroad while maintaining the existing facilities. Thus, businesses will be able to benefit from Turkey's brand value perception in the international market and Egypt's production cost advantage. Low cost will be a key to the survival of the business.

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