Privatization of Anatolia National Telekom: EUTEL Confidential Instructions SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Privatization of Anatolia National Telekom: EUTEL Confidential Instructions
Anatolia National Telekom is a multiparty negotiation simulation patterned after the Turkish government's aborted attempt to privatize its state-owned telecommunications monopoly, Turk Telekom, in late 1997. Provides participants with an opportunity to identify and negotiate complex issues related to the valuation and sale of a state-owned enterprise in an emerging market. Members of each negotiating team are valuing a 20% equity stake being offered by three "selling" teams to three prospective "buying" teams representing different types of foreign investors.
Authors :: Michael D. Watkins, Banu Ozcan, Burkhard Schrage, Paul Vaaler
Swot Analysis of "Privatization of Anatolia National Telekom: EUTEL Confidential Instructions" written by Michael D. Watkins, Banu Ozcan, Burkhard Schrage, Paul Vaaler includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Telekom Anatolia facing as an external strategic factors. Some of the topics covered in Privatization of Anatolia National Telekom: EUTEL Confidential Instructions case study are - Strategic Management Strategies, Economy, Emerging markets, Financial analysis, Government, Negotiations and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Privatization of Anatolia National Telekom: EUTEL Confidential Instructions casestudy better are - – increasing energy prices, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, increasing household debt because of falling income levels, supply chains are disrupted by pandemic ,
banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Privatization of Anatolia National Telekom: EUTEL Confidential Instructions
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Privatization of Anatolia National Telekom: EUTEL Confidential Instructions case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Telekom Anatolia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Telekom Anatolia operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Privatization of Anatolia National Telekom: EUTEL Confidential Instructions can be done for the following purposes –
1. Strategic planning using facts provided in Privatization of Anatolia National Telekom: EUTEL Confidential Instructions case study
2. Improving business portfolio management of Telekom Anatolia
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Telekom Anatolia
Strengths Privatization of Anatolia National Telekom: EUTEL Confidential Instructions | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Telekom Anatolia in Privatization of Anatolia National Telekom: EUTEL Confidential Instructions Harvard Business Review case study are -
Strong track record of project management
– Telekom Anatolia is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Strategy & Execution field
– Telekom Anatolia is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Telekom Anatolia in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Telekom Anatolia has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Telekom Anatolia to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Telekom Anatolia is present in almost all the verticals within the industry. This has provided firm in Privatization of Anatolia National Telekom: EUTEL Confidential Instructions case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Low bargaining power of suppliers
– Suppliers of Telekom Anatolia in the sector have low bargaining power. Privatization of Anatolia National Telekom: EUTEL Confidential Instructions has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Telekom Anatolia to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Telekom Anatolia is one of the leading recruiters in the industry. Managers in the Privatization of Anatolia National Telekom: EUTEL Confidential Instructions are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Privatization of Anatolia National Telekom: EUTEL Confidential Instructions Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Sustainable margins compare to other players in Strategy & Execution industry
– Privatization of Anatolia National Telekom: EUTEL Confidential Instructions firm has clearly differentiated products in the market place. This has enabled Telekom Anatolia to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Telekom Anatolia to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Telekom Anatolia are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Organizational Resilience of Telekom Anatolia
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Telekom Anatolia does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Telekom Anatolia has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Privatization of Anatolia National Telekom: EUTEL Confidential Instructions HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Telekom Anatolia digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Telekom Anatolia has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses Privatization of Anatolia National Telekom: EUTEL Confidential Instructions | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Privatization of Anatolia National Telekom: EUTEL Confidential Instructions are -
Capital Spending Reduction
– Even during the low interest decade, Telekom Anatolia has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Telekom Anatolia has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Privatization of Anatolia National Telekom: EUTEL Confidential Instructions, in the dynamic environment Telekom Anatolia has struggled to respond to the nimble upstart competition. Telekom Anatolia has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Telekom Anatolia is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Telekom Anatolia needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Telekom Anatolia to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Privatization of Anatolia National Telekom: EUTEL Confidential Instructions, it seems that the employees of Telekom Anatolia don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High cash cycle compare to competitors
Telekom Anatolia has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Aligning sales with marketing
– It come across in the case study Privatization of Anatolia National Telekom: EUTEL Confidential Instructions that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Privatization of Anatolia National Telekom: EUTEL Confidential Instructions can leverage the sales team experience to cultivate customer relationships as Telekom Anatolia is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Telekom Anatolia, firm in the HBR case study Privatization of Anatolia National Telekom: EUTEL Confidential Instructions needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Michael D. Watkins, Banu Ozcan, Burkhard Schrage, Paul Vaaler suggests that, Telekom Anatolia is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Telekom Anatolia is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Privatization of Anatolia National Telekom: EUTEL Confidential Instructions can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Telekom Anatolia has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Opportunities Privatization of Anatolia National Telekom: EUTEL Confidential Instructions | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Privatization of Anatolia National Telekom: EUTEL Confidential Instructions are -
Building a culture of innovation
– managers at Telekom Anatolia can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Telekom Anatolia can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Telekom Anatolia can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Using analytics as competitive advantage
– Telekom Anatolia has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Privatization of Anatolia National Telekom: EUTEL Confidential Instructions - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Telekom Anatolia to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Telekom Anatolia can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Telekom Anatolia can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Telekom Anatolia can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Telekom Anatolia in the consumer business. Now Telekom Anatolia can target international markets with far fewer capital restrictions requirements than the existing system.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Telekom Anatolia to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Telekom Anatolia is facing challenges because of the dominance of functional experts in the organization. Privatization of Anatolia National Telekom: EUTEL Confidential Instructions case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help Telekom Anatolia to increase its market reach. Telekom Anatolia will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Creating value in data economy
– The success of analytics program of Telekom Anatolia has opened avenues for new revenue streams for the organization in the industry. This can help Telekom Anatolia to build a more holistic ecosystem as suggested in the Privatization of Anatolia National Telekom: EUTEL Confidential Instructions case study. Telekom Anatolia can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Telekom Anatolia has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Developing new processes and practices
– Telekom Anatolia can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Threats Privatization of Anatolia National Telekom: EUTEL Confidential Instructions External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Privatization of Anatolia National Telekom: EUTEL Confidential Instructions are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Telekom Anatolia with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Telekom Anatolia can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Telekom Anatolia needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Consumer confidence and its impact on Telekom Anatolia demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Telekom Anatolia business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Telekom Anatolia in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Regulatory challenges
– Telekom Anatolia needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Environmental challenges
– Telekom Anatolia needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Telekom Anatolia can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Telekom Anatolia can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Privatization of Anatolia National Telekom: EUTEL Confidential Instructions .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Telekom Anatolia in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Telekom Anatolia can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Weighted SWOT Analysis of Privatization of Anatolia National Telekom: EUTEL Confidential Instructions Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Privatization of Anatolia National Telekom: EUTEL Confidential Instructions needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Privatization of Anatolia National Telekom: EUTEL Confidential Instructions is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Privatization of Anatolia National Telekom: EUTEL Confidential Instructions is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Privatization of Anatolia National Telekom: EUTEL Confidential Instructions is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Telekom Anatolia needs to make to build a sustainable competitive advantage.