IS GROWTH ENOUGH?
Most of the companies that focus on growth in turnover see that the most important benefit is an advantage in terms of economies of scale. Is a high turnover sufficient in itself? LC Waikiki boss Vahap Küçük's response to his question is “No”. He says: “A high turnover is not sufficient in itself and for this reason we are working to increase our profits.” Küçük notes that they attach the same importance to sustainable growth and profitability and adds: “When we increase turnover we increase the scale and gain purchasing advantages as a result. We reduce our fixed costs and increase our profits and market share. We have formulated a strategy of increased productivity and scale.”
Polisan Holding CEO Erol Mizrahi believes that a high turnover is not enough on its own. Mizrahi says: “If you are not making any profit from your business then, however high your sales are, you will eventually have to downsize and wave goodbye to your previous high turnover. Turnover does not mean anything on its own. On the other hand, you have to have a high turnover if you are going to dominate the market, be influential and position your brand so that it sets the market dynamics; and, as a result, you may be faced with the danger of being cut off from the market while you run after high profits. The healthiest thing to do here is to achieve an optimal balance.”
One of the most ambitious of the companies that have focused on increasing their turnovers in 2013 is Gold Teknoloji Marketleri. The company's Marketing Manager Kılınç Orhan Erdemir says that they are planning to increase their turnover by 60 per cent in 2013 and explains what they will do in order to achieve their target of TL 800 million. “First of all, we have changed our marketing strategy. We have developed new communications and marketing plans. We have upgraded our existing stores and added new ones. We are implementing a strategy to increase the number of customers in our existing stores.”
Dogus Cay ve Gıda is targeting turnover growth of 52 per cent by the end of the year, Haluk B. Yıldız, the company's assistant general manager, explains how they will achieve this target as follows: “Our strategy is to focus on the potato chips category, which makes the largest contribution to our turnover, through a major investment.