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Akbank: Credit Card Division SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Akbank: Credit Card Division


The Turkish financial sector has been developing rapidly and often unpredictably, offering an ideal backdrop to carry out an industry analysis in the dynamic environment of an emerging market. Akbank, one of the leading private Turkish banks, has been successful in taking advantage of the new opportunities that appeared in the credit card sector as a result of post-crisis restructuring of the financial services industry in the early 2000s. Launched in late 2001, Akbank's Axess credit card quickly gained a significant market share of 15 per cent and was popular with both customers and merchants. At the same time, the attractive margins in this sector have sparked many local and foreign competitor entries. Setting a sustainable strategy for the next few years is complicated by the change in the political, macro-economic and competitive environment. The new government leading the country since 2002 has improved overall stability in Turkey, which created both opportunities and threats for Akbank's business. The opportunities included an improved banking system and increasing customer disposable income, while the market for credit cards was not yet saturated. However, threats may come from unpredictable actions that banking authorities could implement and increasing competition from both local and international players. The dynamic nature of the banking industry in an emerging market provides a comprehensive case to anchor a discussion about developing flexible strategy in a changing environment. The purpose of the Akbank case is to help students develop environmental analysis skills. It is designed to be used in a strategy course at an undergraduate or graduate level. Additionally, it may be used in a marketing course to illustrate issues related to loyalty programs or in an international business course to illustrate the impact of environmental uncertainty on managerial decision-making.

Authors :: Mary M. Crossan, Marina Apaydin

Topics :: Global Business

Tags :: Growth strategy, Organizational structure, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Akbank: Credit Card Division" written by Mary M. Crossan, Marina Apaydin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Akbank Akbank's facing as an external strategic factors. Some of the topics covered in Akbank: Credit Card Division case study are - Strategic Management Strategies, Growth strategy, Organizational structure and Global Business.


Some of the macro environment factors that can be used to understand the Akbank: Credit Card Division casestudy better are - – there is backlash against globalization, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, etc



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Introduction to SWOT Analysis of Akbank: Credit Card Division


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Akbank: Credit Card Division case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Akbank Akbank's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Akbank Akbank's 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 Akbank: Credit Card Division can be done for the following purposes –
1. Strategic planning using facts provided in Akbank: Credit Card Division case study
2. Improving business portfolio management of Akbank Akbank's
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Akbank Akbank's




Strengths Akbank: Credit Card Division | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Akbank Akbank's in Akbank: Credit Card Division Harvard Business Review case study are -

Organizational Resilience of Akbank Akbank's

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Akbank Akbank's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Digital Transformation in Global Business segment

- digital transformation varies from industry to industry. For Akbank Akbank's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Akbank Akbank's 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.

Low bargaining power of suppliers

– Suppliers of Akbank Akbank's in the sector have low bargaining power. Akbank: Credit Card Division has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Akbank Akbank's to manage not only supply disruptions but also source products at highly competitive prices.

Successful track record of launching new products

– Akbank Akbank's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Akbank Akbank's has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Operational resilience

– The operational resilience strategy in the Akbank: Credit Card Division 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.

Training and development

– Akbank Akbank's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Akbank: Credit Card Division Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Analytics focus

– Akbank Akbank's is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Mary M. Crossan, Marina Apaydin can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Cross disciplinary teams

– Horizontal connected teams at the Akbank Akbank's 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.

Superior customer experience

– The customer experience strategy of Akbank Akbank's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Strong track record of project management

– Akbank Akbank's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

High switching costs

– The high switching costs that Akbank Akbank's has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Innovation driven organization

– Akbank Akbank's is one of the most innovative firm in sector. Manager in Akbank: Credit Card Division Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.






Weaknesses Akbank: Credit Card Division | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Akbank: Credit Card Division are -

Lack of clear differentiation of Akbank Akbank's products

– To increase the profitability and margins on the products, Akbank Akbank's needs to provide more differentiated products than what it is currently offering in the marketplace.

Low market penetration in new markets

– Outside its home market of Akbank Akbank's, firm in the HBR case study Akbank: Credit Card Division needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

High bargaining power of channel partners

– Because of the regulatory requirements, Mary M. Crossan, Marina Apaydin suggests that, Akbank Akbank's 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 strategic competitive environment developments

– As Akbank: Credit Card Division HBR case study mentions - Akbank Akbank's takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

Need for greater diversity

– Akbank Akbank's 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.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Akbank: Credit Card Division HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Akbank Akbank's has relatively successful track record of launching new products.

No frontier risks strategy

– After analyzing the HBR case study Akbank: Credit Card Division, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

Slow decision making process

– As mentioned earlier in the report, Akbank Akbank's has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Akbank Akbank's even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

Workers concerns about automation

– As automation is fast increasing in the segment, Akbank Akbank's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Akbank: Credit Card Division, in the dynamic environment Akbank Akbank's has struggled to respond to the nimble upstart competition. Akbank Akbank's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Capital Spending Reduction

– Even during the low interest decade, Akbank Akbank's 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.




Opportunities Akbank: Credit Card Division | 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 Akbank: Credit Card Division are -

Creating value in data economy

– The success of analytics program of Akbank Akbank's has opened avenues for new revenue streams for the organization in the industry. This can help Akbank Akbank's to build a more holistic ecosystem as suggested in the Akbank: Credit Card Division case study. Akbank Akbank's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Akbank Akbank's 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. Akbank Akbank's 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

– Akbank Akbank's 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 Akbank: Credit Card Division - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Akbank Akbank's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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 Akbank Akbank's in the consumer business. Now Akbank Akbank's can target international markets with far fewer capital restrictions requirements than the existing system.

Building a culture of innovation

– managers at Akbank Akbank's 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 Global Business segment.

Manufacturing automation

– Akbank Akbank's can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Akbank Akbank's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Akbank Akbank's to hire the very best people irrespective of their geographical location.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Akbank Akbank's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Developing new processes and practices

– Akbank Akbank's can develop new processes and procedures in Global Business 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Akbank Akbank's can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Akbank: Credit Card Division, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Better consumer reach

– The expansion of the 5G network will help Akbank Akbank's to increase its market reach. Akbank Akbank's 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.

Buying journey improvements

– Akbank Akbank's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Akbank: Credit Card Division suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Akbank Akbank's can use these opportunities to build new business models that can help the communities that Akbank Akbank's operates in. Secondly it can use opportunities from government spending in Global Business sector.




Threats Akbank: Credit Card Division External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Akbank: Credit Card Division are -

Consumer confidence and its impact on Akbank Akbank's 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.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Akbank Akbank's will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Akbank Akbank's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Increasing wage structure of Akbank Akbank's

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Akbank Akbank's.

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 Akbank Akbank's in the Global Business sector and impact the bottomline of the organization.

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.

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.

Stagnating economy with rate increase

– Akbank Akbank's 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.

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. Akbank Akbank's needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.

Regulatory challenges

– Akbank Akbank's 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 Global Business industry regulations.

Easy access to finance

– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Akbank Akbank's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Akbank Akbank's 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 Akbank: Credit Card Division .

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Akbank Akbank's in the Global Business industry. The Global Business 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.




Weighted SWOT Analysis of Akbank: Credit Card Division 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 Akbank: Credit Card Division 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 Akbank: Credit Card Division 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 Akbank: Credit Card Division 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 Akbank: Credit Card Division 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 Akbank Akbank's needs to make to build a sustainable competitive advantage.



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