This case study, “Turkcell: The only Turk on Wall Street”, starts with an introduction about the history and characteristics of the Telecommunication and country’s economic structure in Turkey. Then it focuses towards Turkcell and its successful story since its beginning in 1993 until now. In the case study, Susan evaluates the prime factors such as social responsibility and the corporate vision, which lead Turkcell through a period from when it received its Global Systems Mobile Communication (GSM) authorization license to delivering voice and data to more than 20 million subscribers.
The study goes like this, the importance of Turkcell’s existence at the Board of Directors of the GSM organization, which represents approximately 77 percent of the world communication industry with 700 members from 192 countries and a total of around 788 million subscribers. Turkcell uses the Global Systems Mobile Communication Association board as a forum to meet the world’s leading GSM operators, cell phone manufacturers, and data/content providers and developers on a regular basis. This facilitates the firm to track global developments and be an active participant in defining global strategies.
The last section of the study points to future challenges that Turkcell, as Turkey’s leading and Europe’s sixth GSM operator by subscriber numbers, may face. Vision was major abstract theme that Turkcell displayed since they initiated operations. A vision statement how you picture of a company in the future but it’s so much more than that. The vision statement is the inspiration, the structure for all the strategic planning. A vision statement simply answers the question, “Where do we want to go? ” The creation of Snabbit.
The design of the rabbit with snail antennas was created to make it memorable and reflect the company’s energy, dynamism and total uniqueness that define Turkcell. Now you can see this logo present in various promotional events. Another example of Turckcell vision was the first GSM distributor in Turkey. This awarded them the prestigious ISO9001. The ISO award promotes the guidelines to operating efficiency, improve productivity and reduce costs. Thus means the firm has been certified in design, engineering and manufacturing.
The vision Turkcell created articulating their dreams and hopes to succeed in the telecommunications business, reminded them of what they were trying to build. However, not everything wasn’t pretty and clear. First they had to struggle with the government, because the telecommunication industry was government-owned. After Turkcell acquire the license to operate and making the green numbers, deflation brought 50 percent of profits down. As consequence of the deflation Turcell had to use U. S funds to repay bank loans among other liabilities.
Subsequently, they increased the rates 101% in 2001, but it wasn’t enough to cover the 114% inflation and devaluation of the Lira. In addition, during their first quarter of 2003 they had to pay a total of 313 million of debt in principal and interest. Even though, they had durable financial struggles, their organizational philosophy and social responsibility never fluctuated. Their philosophy argues that the importance of good costumer relations and being a good corporate citizen. Being a responsible philanthropic company Turkcell provided 5000 teenage girls with scholarships.
Great leaders make great decisions. Turckcell marketing teams along with sales department were one’s most pressure and crucial sectors for the sustainability of the company. 2001 was a difficult year for the whole economy and the mobile communications were not the exception. Resources were compounded in turkey by the economic shock that lead to the depreciation of the currency, lower purchasing power and in general the contraction of the whole economy. The economy malfunction didn’t distract their mission.
Subscribers in rural areas resisted to technology such as cell phones and the worst part was that they didn’t know how to use the mobile communication. As a part of their strategy to attract new costumers’ and educational campaigned was fulfilled. The project lasted more than 3 years and it tour 82 cities and teach more than 500,000 attendants. We can clearly see that even though the economy was not at is fullest that wasn’t enough to stop Turkcell. The decision they implemented to target rural areas and build a campaign to introduce mobile operations was the best strategy to gain loyal costumers.
One recommendation that their strategy to gain new costumers fail to do was to target teenagers. With more than 225 million people carrying cell phones in Turkey, nearly two-thirds of teens owning their own cell phone. Teenagers are more receptive to technology and innovation. Being able to communicate faster in this rapidly moving world cell phone for teenagers is not a privilege but a necessity. Immediately Turkcell has to develop a partnership with social networks sites. Facebook, Twitter and other social media sites are the upcoming innovations that teens are starting to use.
Kids aren’t afraid of technology; new phone allows them to do more things that they want to do. In the short-run, have a clear vision as they did at the beginning of Turkcell. Develop a fast and efficient website, because teens these days have a big interest and activity online. In the long-run, Turkcell we decided if the profits were sufficient or change the strategy. As Dr. Jasso says the only things that remains constant is change and strategy is always changing. The perfect time to pull this strategy together will be soccer world cup.
During the world cup more than ? of the population is enjoying the matches. Several marketing and advertising ads will hit the spot. This will aware the populations that Turkcell has an innovative change targeted towards teens how eventually are the ones that will lead the world’s future. These days teens are do much more with their mobile devices that we use to expect before. They text with their eyes closed and this is only the beginning. Technology can hardly keep up with their increasing demand for new mobiles and features.