Effects of Global Fast-Food Restaurants on Local Fast-Food Markets: Case of Turkey
Abstract
The aim of this study is to try to analyze the competitive structure of the national fast food industry, taking into account the shares of global fast-food brands operating in Turkey in the fast-food sector and their weight in market concentration. In this direction, hamburgers, pizzas, sandwiches, etc. dominated by global fast-food restaurants. The current situation in Turkey in the industry where fast-food foods are consumed is discussed. In the literature review, some of the most frequently used concentration indices, such as N-Firm Concentration Ratio (CRn), Herfindahl-Hirschman Index, Entropy Index (EI), Hannah-Kay Index (HKI), Gini Index (GI), were examined in the context of case studies. Examples of similar studies, which were previously carried out in other sectors and industries using different indexes, are presented. In the light of the limited statistical data in the sector mentioned in the study, the market concentration ratios of fast-food brands were tried to be calculated, and the competitive environment and market structure in the industry were analyzed. In general, the fast-food sector and the entire market, in particular, McDonalds' firm has been handled as a case study, the emergence of the brand in the first place, its development process as a global fast-food brand across the world, and its entry into the fast food market in Turkey are examined from a historical perspective. It is discussed. Then, the market share of McDonalds' hamburgers was tried to be analyzed by comparing them with the market shares of other fast-food brands and products. The market concentration and competition structure observed in the fast-food sector throughout Turkey were intended to be made using certain indexes accepted in the literature, but insufficient statistical data on the industry limits research. In this context, the market concentration levels in the fast-food sector in the Turkey in this study were tried to be analyzed via firm Concentration Ratio-CRn and Herfindahl-Hirschman index. As a result of the analysis, it has been determined that the market concentration rates of the mentioned global brands in the fast-food industry are at a high level and the level of competition is close to the oligopoly market. It has been observed that an oligopolistic market structure has developed in the market where fast-food style foods are consumed, away from the perfect competition market. As a result of the analysis, it has been determined that the concentration rate in the Fast-food industry in Turkey is quite high and the level of competition is close to the oligopoly markets. It has been determined that global brands have more and more market share in the current fast-food market in Turkey, increasing the number of branches and their geographical prevalence thanks to their power, recognition and capacity to rapidly integrate into the market. In summary, it has been observed that a small number of international fast-food brands have come to dominate the market by increasing the number of restaurants they own and their share of the consumption pie in Turkey over the years. This has brought about the oligopoly market structure in the sector in question.
Keywords
Globalization , International Brands , Fast-food Industry , Market Concentration Ratio , Oligopoly Markets
Kaynakça
- Akardeniz, E. & Kıraç, F. (2015). Measuring the Level of Competition and Concentration; Gaziantep Technical Textiles Market, The Journal of Academic Social Sciences, March 2015, 3 (10): 451-472.
- Anıl, M., Kılıç, O., Başkaya D., Dinçer, M. & Aydın, G. (2011). Fast-Food Type Nutrition Habits of Samsun Ondokuz Mayıs University Students. Samsun Symposium Proceedings Book, p.52.
- Boyer, R. (1999). The Variety and Unequal Performance of Really Existing Markets: Farewell to Doctor Pangloss, in: Hollingsworth, J.R. and Boyer, R. (eds.). Contemporary Capitalism: The Embeddedness of Institutions. Cambridge: Cambridge University Press.
- Brady, K. M., Robertson, C.J. and Cronin, J. J. (2001). Managing Behavioral Intentions in Diverse Cultural Environments: An Investigation of Service Quality, Service Value and Satisfaction for American and Ecudorian Fast-food Customers, Journal of International Management.
- Brand Core. (2018). Fast Food Alışkanlıkları Araştırması, http://zennadanismanlik.com/images/pdf/Brandcore_Mart-Nisan-2018_Fast-Food-aliskanl%C4%B1klari.pdf. (Access Date: 10.04.2021).
- Bikker, J. & Haaf, K. (2002). Measures of Competition and Concentration in the Banking Industry: A Review of the Literature, Economic & Financial Modelling, 9 (2): 53-98.
- Caves, R.E. (1996). Multinational Enterprise and Economic Analysis (2nd. ed.). New York: Cambridge University Press.
- Cemalcılar, İ. (2001). Marketing Management (3rd ed.) Anadolu University Publications, No: 885, Eskişehir.
- Chung, H.F.L. & Enderwick, P. (2001). An Investigation of Market Entry Strategy Selection: Exporting vs Foreign Direct Investment Mode: A Home-host Country Scenario. Asia Pacific Journal of Management, 18 (4): 443–460.
- Curry, B. & George, K. D. (1983). Industrial Concentration: A Survey, The Journal of Industrial Economics, 31(3), 203-255.