Appendix A: Case Firms

Appendix A: Case Firms Abdi İbrahim Abdi İbrahim was established in 1912 as a small pharmaceutical labora- tory in Istanbul. It has been the leading company in the Turkish pharmaceuticals market in terms of turnover and unit sales since 2003. The production operations of the company date back to 1919. The company was renamed “Abdi İbrahim İlaç Sanayi ve Ticaret A.Ş.” in 1975. It has been run by the third generation of founder’s family since 1981. Abdi İbrahim is ranked among the world’s top 100 pharmaceutical companies (Abdi İbrahim Inc., 2016). It offers pharmaceutical services to the healthcare industry with its intensive and innovative research and development (R&D) practices and advanced production technologies. The firm has 3000 employees, including the largest sales and marketing force and the most experienced R&D specialists in the domestic sector (Abdi İbrahim Inc., 2016). The mission and vision statements of the company are as follows: Mission To serve medicine and people through its pharmaceuticals and its pioneer- ing, innovative style. © The Author(s) 2018 213 Y. Ayden et al., Turkish Multinationals, Palgrave Studies of Internationalization in Emerging Markets, DOI 10.1007/978-3-319-57294-9 214 Appendix A: Case Firms Vision To be a respected, rapidly growing and number one player in the Turkish pharmaceutical market. (Abdi İbrahim Inc., 2016) Abdi İbrahim’s goal of being a global player motivated the company to take a more active role in world markets. The company has large direct investments in Kazakhstan and Algeria, and its own organizations in Cyprus, Ukraine, Georgia, and Azerbaijan where it performs direct sales through its own subsidiaries. Moreover, it offers its products in European Union (EU) countries through its subsidiary established in Portugal (Abdi İbrahim Inc., 2016). The firm works with almost 30 international licensors in international markets and exports to more than 50 countries in four main regions. The company has a great reputation in the pharmaceutical industry on account of its 150-brand portfolio, close to 30 licensors, and an annual production capacity of 350 million boxes (Abdi İbrahim Inc., 2016). Arçelik Arçelik manufactures and markets home appliances and consumer electronics. The firm was established in 1955 by the Koç family, a leading business families in Turkey. The company initially grew in the domestic market by opening a series of manufacturing facilities in the country. Arçelik currently employs 27,000 people and has 18 production facilities located in seven countries: Turkey, Romania, Russia, China, South Africa, Thailand, and Pakistan. With 11 different brands, all of them competitive in their local markets, Arçelik exports to more than 130 countries and holds 50 % of the domestic white goods market in Turkey. The company is also the market leader in Romania and South Africa with its local brands. Arçelik holds a strong position in many European countries such as the United Kingdom (UK), Germany, France, Russia, Poland, and Italy in home appliances and consumer electronics. Arçelik is the leading Turkish firm in terms of patent applications. In 1991, the company established an independent center to accelerate its R&D efforts and is currently among the world’s leading 200 firms in Aydınlı 215 terms of intellectual property rights applications, according to the World Intellectual Property Organization (WIPO)—and it is the only Turkish firm included in the ranking. In international markets, Arçelik began to direct investments by acquiring German (Blomberg), British (Leisure, Flavel), and Austrian (Elektrabregenz, Triolia) home appliance and consumer electronics brands to strengthen its position in European markets. The company built a production plant in Russia in 2006. In 2007 Arçelik acquired the whole ownership of German consumer electronics brand Grundig. In the same year, a new production plant in China began to operate. The company grew internationally in 2011 by acquiring Defy Appliances, the leading white goods manufacturer of South Africa. In the same period, Arçelik opened subsidiaries in its target markets, including Ukraine, Egypt, and Taiwan. Arçelik invested in a new production plant in Thailand to serve the Southeast Asian markets in 2015, and acquired Dawlance from Pakistan to accelerate its global growth. The company engaged in many sponsorship agreements with internationally recognized sports teams and organizations such as the European Basketball Championship, World Basketball Championship, FA Cup, and FC Barcelona. In order to internationalize its R&D activities, Arçelik engages in partnerships and cooperative projects with the top universi- ties and R&D centers. For example, the company has an R&D center in Cambridge Science Park where the most important technology companies are also located. Arçelik has ten R&D centers located in Turkey, Taiwan, and the UK where the company employs more than 1000 specialists (Arçelik Inc., 2016a, 2016b). Aydınlı Aydınlı is a Turkish retailer and manufacturer in the ready-to-wear industry. The foundations of the Aydınlı Group can be dated to 1965 when the first store was opened in Istanbul. In the 1970s, the Group opened mul- tistory shops and started to wholesale ready-to-wear men’s and women’s products under their own brand, “Aydınlı.” In the following years, Aydınlı reached 200 retailers in total and started to manufacture its own products. 216 Appendix A: Case Firms In 1990, the Group accelerated its growth by establishing larger production facilities equipped with the latest technologies. At that time, 80 % of the products manufactured in Aydınlı facilities were exported. In the 1990s, Aydınlı signed contracts with Pierre Cardin (in 1993), Cacharel (in 1995), and the U.S. Polo Association (in 1997) to become their con- tract manufacturer and licensee in Turkey. These licenses accelerated the growth of the Group. In 1997, Becon, a German ready-to-wear brand, was acquired. After 2000, the Group started to internationalize its retail operations through franchising in the surrounding region with the brands it had been representing. By 2014, the Group’s 410 retail stores, of which 150 are located abroad, employed more than 3500 workers, making it one of the largest retailers in Turkey’s periphery (Aydınlı Inc., 2016a). Aydınlı is currently the licensor of the U.S. Polo Association in 57 countries. It holds licenses for Cacharel in 37 countries and Pierre Cardin in 13 countries. The Group manages Cacharel in 17 countries and owns the brand rights for men’s ready-to-wear in Russia, Ukraine, Iran, Iraq, Syria, Kazakhstan, Azerbaijan, and Lebanon. Aydınlı represents Pierre Cardin in Kazakhstan, India, Iraq, Iran, Syria, Macedonia, and Azerbaijan with ready-to-wear products. It also holds the licensor rights of the brand for almost 60 product groups including home textiles, furniture, and carpets. By 2015, Aydınlı was ranked as 199th in the Fortune 500 Turkey list (Aydınlı Inc., 2016b). The mission and vision statements are as follows: Mission Our mission is to become a worldwide example by putting forward a cor- porate culture that lives universally accepted values in all areas of life while allowing people to dress more beautifully with our success in fashion retailing. (Aydınlı Inc., 2016b) Vision In 2023, based in Turkey and in its close proximity that is connected with historical ties, our vision is to become one of the three most successful retailers with acquired or represented brands in fashion retailing. (Aydınlı Inc., 2016b) Aydınlı currently exports its products to four different continents via its distributors, network of retailers, and its own foreign offices and stores. The Group has subsidiaries in Germany, Russia, Ukraine, Kazakhstan, and Boydak Furniture 217 Romania (Aydınlı Inc., 2016c). Direct investments in retailing began in 2008 with the Group’s offices, showrooms, and retail stores in Russia and Ukraine. The Group subsequently opened six stores in Russia and four stores in Ukraine where it previously had franchisees. Later, two companies in Romania and Kazakhstan were opened to run the retail operations in those countries. After these investments, the first stores in both countries were opened. Aydınlı now has 144 retail stores abroad in total. Of these stores, 59 are owned by the company. Among other countries, Russia has a significant share, with 53 stores, 37 of which belong to Aydınlı and the remaining to franchisees. As of 2015, Aydınlı’s revenue totaled $270 million. The Group’s long-term objective is to become among the top three retailers in the global ready-to-wear market (Aydınlı Inc., 2016b). Boydak Furniture The origins of Boydak Group can be dated back to 1957 when the Boydak family started to produce furniture in a small workshop in Kayseri, Turkey. It currently has operations in furniture, textile, chemistry, marketing, iron/steel, logistics, and energy industries. Boydak Holding has 34 companies and seven different brands, all of which are leading brands in their respective industries, including İstikbal, Bellona, Mondi, İstikbal Mutfak, Hes Kablo, Boyteks, and Form Sunger. The Holding exports to 140 countries and is among the important holdings in Turkey, with $2 billion in turnover in 2015 (Boydak Holding Inc., 2016a). Boydak originally began as a furniture manufacturer and later diversified its businesses into other industries. However, furniture has always remained of central importance for the Holding, accounting for almost 35 % percent of the Group’s revenue. In the furniture industry, Boydak Furniture exports to 80 countries and has made direct investments to establish five subsidiaries abroad. Therefore, our case study focused only on Boydak Group’s furniture operations. The Holding vision and mission statements are as follows: Mission Attain continuous development throughout all fields of activity by means of sustainable growth, take leadership in the development of our industries, and become a value for our shareholders, associates, and community.

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