ABSTRACT

The Turkish leather clothes sector is a dynamic industry with many new firms being established, mostly through spin-offs. The Turkish leather clothes industry is an interesting case, as far as the Michael Porter ideas are concerned, since it lacks a clear advantage in factor conditions. Turkish leather clothes producers are highly dependent on a few markets, namely Germany and Russia, which makes them very vulnerable to fluctuations of demand in these countries. Rivalry amongst Turkish leather producers is intense; in fact, so intense that it disturbs some industry participants. Probably the most outstanding ‘chance’ event for the Turkish leather clothes industry is the emergence of a high demand from the Russian market since the late 1980s. An issue related to the role of government is the political and economic uncertainty and instability in Turkey, which affects all sectors but especially hurts the ones engaging in exports.