Assignment on Strategic Analysis 2022

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Strategic analysis

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Introduction
The Turkish airline is the first flight carrier of turkey and was established in 1993. The company
has enhanced its value by including the growth strategies and by that new flights were added to
the process. It is situated in the turkey’s northwestern part where the main center is located.
The strategic position of Turkish airline
Pestle analysis
Political factors
 In the company, there are various policies
which are established with the help of local
government and with the change in the
government the policies are also modified
(1).
 There are the standards policies which will
be applied to all the countries (2).
Economic factors
 Fortune of the business is affected by the
intervention of government (27).
 There is the availability of funds easily in
the equity market (26).
 There is an increase in investment in
infrastructure (5).
Social factors
 More priority is given to the preferences of
consumers (4).
 There is an investment in public services
which increased the customer base (3).
 Health and safety are given high priority
(28).
Technological factors
 Use of latest technology has reduced the
servicing and production cost (7).
 There are the latest developments which
are involved and by that user experience is
enhanced (6).
Environmental factors
 High investment is made in waste
management (9).
 Cost of operations is increased because of
supply chain investment to deal with
extreme weather (8).
Legal factors
 All the norms which are specified by the
government are complied with (11).
 In compliance with laws, the increased cost
is faced (10).
Figure 1 Turkish Market Growth (mn passengers)
(13)
In the domestic market, the constant growth is
forecasted for the upcoming period whereas in the
international market growth has been forecasted
which will be beneficial for the company (13).
Figure 2 Key financial data (12)
This image represents all the important
financial information and change taking
place.

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Figure 3 Turkish Airlines Historical Growth (14)
The changes which are taking place in the company
from the past in terms of destinations covered are
shown. In 2018 there are 322 aircraft (15).
Figure 4 124 destinations (16)
All the destinations which are covered
by the company are shown in the table.
There are a total of 124 countries in
which flights are available.
Porter’s five forces
Bargaining power of buyers: There
is a high rate of the same as many
airlines are available for all the
customers whether they are traveling
for pleasure or the agents (17).
Bargaining power of suppliers: The
suppliers have high power as they
can sell their services to those paying
more by providing best services (18).
The threat of substitute: The threat
is high as there is the use of
advanced technology by all and that
may attract the consumers by other
airlines (19).
The threat of new entrants: This is
low as the entry in the airline
industry requires due to the amount
of capital (20).
Rivalry among existing
competitors: there are many
competitors available for Turkish
airlines and so rivals are more and
dealing with them is made in the best
possible manner by providing the
preferred services (21).
Figure 5 Highest Connectivity for Europe, Africa, and the
Middle East (22).