“THY – TURKISH AIRLINES CASE
Wojciech Łaniecki Esat Murat Atalay Busra Akkulak Mamura Madalieva
I Stage Analysis of the internal and external situation.
1. Internal analysis.
1.1Expanding home market economy and favourable demographic:
Turkish Airlines has a unique growth opportunity. With a population of 75 million, a dynamic economy, a relatively large geographical area (780,000 sq km) and increasing disposable income among its population,Turkey’s air travel demand continues to grow, at a time when the majority of Europe is experiencing sharp reductions.
1.2 Strategic geographic position:
The country is attractively geographically positioned, located only three hours flight time from 50 different countries (according to Turkish Airlines) and its unique position.
1.3 Strong domestic presence:
Turkish Airlines currently operates to 37 domestic destinations.
1.4Star Alliance membership and close relationship with Lufthansa:
Most airlines will have to be part of an alliance in order to survive in the future because if you are not a member of an alliance it is very hard to compete with other alliances that offer incredible benefits
2. External analysis.
2.1 Political factor
THY is a government-owned, national flag carrier
Labor agreement has powerful(Turkish Civil Union of Aviation)
Discounters suit themselves and make money from receipts thanks to regulations of government
In 2002, the new Turkish Government announced, it would not be subsidization for THY
The State Privatization Administration launched a public share offering
Trust of financial markets without the need for government guarantees
2.2 Economical factor
Ticket prices have risen because of the increasing in fuel costs
Air travel in Turkey will be the biggest growth market
THY sells tickets via the Internet so that sales costs can be minimized
The number of airline companies will be diminished and the condition of market will change because airline firms in Europe fortificates
The number of travelling tourist from Europe to Turkey cut down due to the terrorism
International economic situation,or global crisis
2.3 Social factor
In international area, competitors use service culture enough to make their customers comfortable about the airline
They have always been transaction- oriented, not customer oriented
Swine flu,climate conditions and crash in Amsterdam
People’s lifestyle of transportation is changed by development in aircrafts
Service culture problem, It will take time
2.4 Technological factor
Satellite programming, wireless internet access, satellite monitors at every seat and seat –back personal video screens in modish aircrafts
Reservation on telephone and on the Internet
THY uses IBM computers
Turkish Airlines (THY), to take effect the new competitive conditions in the world, which has become an important reality, “On-Demand Enterprise” business processes in order to become in-house, it heard the need for flexibility for agencies within the framework of inter-and customers. This is in line with the management of software development, infrastructure, processes and tools needed to standard.
We did internal and external analysis. It provided to see tool for audit and analysis of the overall strategic position of the business and its environment for us. it is the foundation for evaluating the internal potential and limitations and the probable/likely opportunities and threats from the external environment. It views all positive and negative factors inside and outside the firm that affect the success.
3. Swot analysis.
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