Turkcell is a leading mobile telecommunications operator in Turkey that has operated since 1994. It faces challenges from currency depreciation reducing purchasing power and increasing debt. To address this, Turkcell hedges against currency risk and gradually raises fees. Looking ahead, Turkcell plans to expand into nearby emerging markets, acquire 3G to remain competitive, and expand related services like internet and apps. Long-term, Turkcell may globally expand through acquisitions as technologies change.

1. TURKCELL
(Mobile Telecommunication)

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Theoretical Model
Competitor Analysis
To see the competitive environment, Turkcell can
use the model of competitive analysis
Market Commonality
Resource Similarity

15. Additional Update on Turkcell
 Current goals in 2012