The Strategies of a foreign bank in an emerging market-A case study of Park Bank in Turkey
This paper attempts to explore the strategies of a foreign bank in an emerging market-namely Park Bank in Turkey. Reviewing the existing literature on foreign entry to emerging markets, this paper focuses on the three main questions that researchers have attempted to address- Why Park Bank entered the Turkish market, what strategies were employed and how these strategies affect the level of competition and efficiency of the Turkish banking sector. The case study, generated by documentary analysis, in-depth and semi-structured interviews with both Park Bank officials and those of the Banks Association of Turkey, evaluates the manner in which a foreign bank acts in an emerging market with high volatility by segmenting the market through revising its lines of business. The case reflects a good example of an incremental strategy formation by a foreign bank that has already established a presence in the local market and it also reveals that such strategic evolution has implications on the domestic banking sector. The strategy of business expansion towards new market segments through organic growth affects the level of competition and efficiency in the Turkish banking industry as local banks are forced to re-evaluate their own strategies.