Turkey and the Southern Corridor Case Solution & Answer

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This Case is aboutÂ INTERNATIONAL BUSINESS, STRATEGY

PUBLICATION DATE: March 11, 2015 PRODUCT #: 715042-HCC-ENG

In December 2014, Russia had cancelled the South Stream pipeline that was missioned to deliver natural gas through Black Sea on Europe and substituted it with a pipeline through Turkey. The Turkish Stream proved to be an excellent chance for Turkey to turn itself into an energy heart of its own area. The geographic position of the country was clearly one of its strong point: to its east lay 70% of the natural gas reserves of the world’s, including Azerbaijan, Turkmenistan, Iran, Iraq, Russia, as well as the eastern Mediterranean basin.

Turkey and the Southern Corridor Case Solution

To its west was largest energy consumers of the planet Europe. In the event TANAP pipeline jobs and the Turkish Stream join to other potential energy reservations within the broader area and to go through, would it not be unlikely that Turkey would finally become one of the major energy hallways in Europe -maybe even a central location or hub? Was it risky to persist as a transit nations and secure its own energy needs and to continue at possibly lower costs? Would Turkey be able take advantage of the accessible resources in its south and to prioritize economical increases?