The recent rise in the rate of market risk has resulted in companies behaving more sensitively when it comes to growth. The priority has become profitability and holding onto what they already have rather than the speed of growth.
Compared with a few years ago, companies are behaving more “conservatively” on several issues, such as borrowing, entering new businesses and investments. In terms of the number of stores, production centers and even the number of customers, they are opting to move forward according to the principle of “small but sound”.
Experts describe this situation as companies displaying an introspective reflex and predict that the trend will increase. "We grew by 100 per cent for two years in succession. This speed resulted in us looking to digest growth in order to move forward in a sound fashion.
Rapid growth meant that we spent a lot of time focused on production figures and as a result were not looking at management. In fact, in the medium term this concept of “let’s produce and grow whatever the cost” is a threat to the healthy continuation of the business. From now on, instead of 100 per cent growth, our target is small but sound and sustainable growth.”
These words belong to Erkunt Traktör General Manager Zeynep Erkunt. But it is not just Erkunt. At the moment, a lot of other companies are looking at things in the same
way. They are focusing on sound rather than rapid growth, profitability rather than turnover and looking to spread risk rather than shoulder it all.
Experts say that the main reason for this is that the disruption in the dynamics of the economy has resulted in companies displaying an introspective reflex. Msearch General Manager Ali Midillili says that companies have reacted to the contraction in the market in a competitive environment by looking to protect themselves.