Turkey will remain an attractive market in multinational companies’ (MNCs’) emerging Europe, Middle East, and Africa (EMEA) portfolios in the next five years. Consumer, business, and public-sector demand will grow moderately, creating opportunities but not buoying easy revenue growth for firms. High costs, competitive pressures, and FX volatility will be key components on the business environment. While MNCs focus on capturing short-term opportunities, they should also take the necessary actions now to build the long-term resilience of their Turkey business.
Frontier Strategy Group’s flagship Ahead of the Curve report on Turkey 2023: Scenarios and Outlooks provides both a long-term demand outlook for MNCs and a long-term outlook for the operating environment. By taking action now to improve competitiveness and strongly differentiate products, MNCs will be better prepared for potential disruptions. Suggested actions discussed in the report include:
- Diversify your customer base to protect against demand fluctuations and varying purchasing behavior of different segments amid a market downfall.
- Make the necessary investments now to increase the resilience of your Turkey business against economic shocks.
“A plethora of economic and political pressures since 2015 and the prioritization of high growth in 2017 weakened Turkey’s macroeconomic fundamentals, increasing its vulnerability to a slowdown in the economy and/or a liquidity crunch in the next five years,” said Zeynep Kosereisoglu, practice leader for Turkey and MENA at FSG, and author of this report. “Companies should invest in building resilience in the Turkey business now.”
This report, and many others like it, is available in the Frontier Strategy Group Online store. Click here for sample pages to help you evaluate whether the report is right for you.