Strategy during an Industry Crisis: The Post-Quota Experience of Turkish Apparel Manufacturers

Abstract

Discussions about the elimination of apparel quotas have focused on countries that obviously benefit or are harmed by their demise. Little attention has been paid to countries for which the post-quota environment is uncertain – and vital. As quotas were lifted in January 2005, uncertainty loomed particularly large for Turkey, the world's fourth largest apparel exporting nation. This paper utilizes secondary data and a survey to chronicle Turkish apparel exporters’ strategic expectations, preparations, and responses to the post-quota environment. The case details the unexpected consequences of quota elimination for the industry, including how the new competitive environment catalyzed many manufacturers to locate production in foreign lands.

Citation

Riddle, L. (2006), "Strategy during an Industry Crisis: The Post-Quota Experience of Turkish Apparel Manufacturers", Choi, J.J. and Click, R.W. (Ed.) Value Creation in Multinational Enterprise (International Finance Review, Vol. 7), Emerald Group Publishing Limited, Leeds, pp. 565-587. https://doi.org/10.1016/S1569-3767(06)07023-3