Strategic Management - Turkcell

Topics: Mobile phone, GSM, Revenue Pages: 11 (3494 words) Published: March 4, 2013

Turkcell is a mobile communication company based in Turkey that started its operations in 1994. It was the time when Turkey first met the mobile communications. Its competitors are Vodafone and Avea. Turkcell is listed on the Istanbul (IMKB) and Newyork stock exchanges since 2000. It is the first Turkish company to ever be listed on the NYSE. Turckcell has over 34.1 million subscribers all over turkey and this has made it the leading and largest operator in the country with a market share of 54%. Its investments within Turkey are worth over 8.8 billion US dollars and through the years, it has continuosly increased the variety of its services as well as the quality of its services. Turkcell offers technologies that enable fast data transfer such as “TurkcellEdge”. Turkcell also provides GSM services internationally. Through Fintur and its affiliates, Turkcell has increased the number of its subscribers base by over 9.6 million. In 2002, Turkcell received a prize for Best New Service in World Communication Awards. In 2007, it entered the INFO Tech 100 list which is based on the financial data obtained from S&P. Turkcell is owned by the group by 51% and nearly 35% of shares of Turkcell is publicly traded.  Turkcell employs 2800 people average age of whom is 33. 90% of the employees are university educated or higher. For Turkcell employees are most valuable assets and the company tries hard to provide employees with best human resources practices in the world with creative, innovative, and efficient work environment that will encourage high performance and make employee enjoy working.

Business: Industry, Market, Customers, Products

Turkcell is one of the leading companies in the mobile communications sector. The company operates in Turkey with a market share of 54%. Besides, it serves in Ukraine and Belarus under brand name “life : )”, in Kazakhstan as “Kcell”, in Azerbaijan as Azercell, in Georgia as Geocell, in Moldova under “Moldcell” brand and finally in TRNC(North Cyprus) as “KKTCell”. Market share of Turkcell in these countries, to say in sequence, is 18%, 14%, 50%, 55%, 44%, 32% and 69% for TRNC. Turkcell also started operations in Germany as “Turkcell Europe” in the first quarter of 2011. The group has 60.4 million subscribers in total.

Turkcell stands out in the market with its focus on quality and innovation. Turkcell mostly appeals to business people and people with income above the average, whereas the competitors in the market focus on attracting youth and people with lower income through sms packages and other promotions. Although Turkcell also has some promotions and packages, it does not get on a price war with other companies and just try to appeal costumers with its sound quality and coverage area which is proved to be 99.07% in Turkey. Turkcell’s services, except the basic call, sms, and mobile internet services, can be stated as Music, TV and video services for mobiles, daily information and education services, and dozens of applications. The most recent innovation of the company came out on a new mobile phone “T20” produced by Turkcell itself. T20 enables people to use their simcard as a credit card and to ask and receive money from friends in emergency cases. Turkcell’s ambition is to follow up the newest technology and make the necessary changes immediately. Within this context, providing a speed of 42Mbps in 3G Turkcell is one of the first 10 companies using such a technology in the world.

Trends in Profits and Sales(US Dolars)

| 2008| 2009| 2010|
Revenue| 6,970,408| 5,789,972| 5,982,093|
Profit| 1,755,062| 1,104,804| 1,126,921|

Revenue of Turkcell is developed from the subscribers in Turkey and also from the subscribers in 9 countries where the subsidiaries operate the business. The trends of the sales revenue of Turkcell are mostly improved. In 2008, although it did not significantly change, the revenue from sales still increased up 10.1%. This...
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