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  1. 1. TURKCELL (Mobile Telecommunication)
  2. 2. Basic Information of Turkcell Case Summary Future Actions Theoretical Model • Leading mobile telecommunication operator in Turkey with over 100 different consumers’ services • Operated since 1994 • In 2002, there were about 2000 employees with $3.2 billion asset • Famous in differentiated services
  3. 3. Currently Used Strategies  Differentiate itself using a better quality of service along with variety of services over 100  Maintain position of being the leading mobile services technology provider  Maintain positive images of the companies through excellent public relations and marketing plan Case Summary Future Actions Theoretical Model
  4. 4. Current Problems (from case)  External Factors: the Turkey’s Lira currency’s depreciation due to inflation (through Seigniorage) - Reducing purchasing power - Debt increases with lower purchasing power - Need to maintain 2 accounting standard - Reduction in calling minutes due to economic crisis  Internal Factors: decision to implement 3G (Already Implemented in 2009)Case Summary Future Actions Theoretical Model
  5. 5. Measures for dealing with situation  Current Measures i. Buying Forward Contact to hedge against FX risk ii. Raising the fees gradually to keep up with inflation  Future Measures i. Expand to more emerging market; if cannot compete in Europe yet ii. Implement 3G as soon as government license allows Case Summary Future Actions Theoretical Model
  6. 6. Resources for Future Actions Resources of the firms Among the best telecommunication provider Strong Brand equity (Snabbit) Expertise in marketing (Various CSR projects) Great service team Employees customer loyalty Received various award with ISO-9001standard Strong connections with various firms around EuropeCase Summary Future Actions Theoretical Model
  7. 7. Future Actions  Immediate future actions i. Expand the subscriber bases and increases calling minutes to expand revenues using marketing plans similar to a previously successful ones. ii. Keep the management standard to maintain a leading position. Case Summary Future Actions Theoretical Model
  8. 8. Future Actions  Medium-term future action I. Should expand to nearby country with emerging telecommunication industry. II. Utilizing existing financial holding to expand and acquire subsidiaries to increase the number of subscribers. III. Acquire 3G to stay competitive. IV. Expand to related field of services. (Internet, or applications) Case Summary Future Actions Theoretical Model
  9. 9. Future Actions  Long-term future actions i. Expand globally if situations arise, through acquisition, mergers, or joint venture. ii. Continue long-term contribution to the society for future brand equity and corporate social responsibility. iii. Keep assets ready for new technology to stay competitive in new markets in future Case Summary Future Actions Theoretical Model
  10. 10. Future Actions Pros & Cons Buying 3G License Pros I. Staying competitive technologically II. Expands number of services provided Cons I. Resources required are huge II. Requires a lot of time to payback III. Need to brought in employees with expertise in new technology Case Summary Future Actions Theoretical Model
  11. 11. Future Actions Pros & Cons Expand across nearby emerging countries Pros I. New growing markets in nearby countries gives more subscribers, more revenue. II. Already have access through other firms in the countries (Azerbaijan, for examples) III. More utilization of brands Cons I. May create conflict with subsidiaries II. Market can resist change in technology if brought inCase Summary Future Actions Theoretical Model
  12. 12. Theoretical Model Overviews of telecom market  The expansion throughout Europe, and other places, can lead to the situation in which the firm, Turkcell, compete with the same firm, in this case, Vodafone, in many areas (countries in Europe).  This is the model of “Multipoint Competition,” or “Multimarket Competition.” Case Summary Future Actions Theoretical Model
  13. 13. Theoretical Model Overviews of telecom market  Oligopolistic competition, but with government owned firms competing with price lower than cost (predatory pricing)  Turkcell must compete through differentiation of their services so they can have more control in pricing strategy in oligopolistic competition  Due to oligopolistic natures, collusion is tempting, but government may not allow, so it results in large numbers of merging and joint ventures.Case Summary Future Actions Theoretical Model
  14. 14. Theoretical Model Competitor Analysis To see the competitive environment, Turkcell can use the model of competitive analysis Market Commonality Resource Similarity
  15. 15. Additional Update on Turkcell  Current goals in 2012