Introduction
Nowadays, the services of civil aviation firms constitute an essential part of practically everyone’s life. Civil aviation enables regular people to travel large distances in a short amount of time. In other words, civil aviation firms enable consumers to conserve their most important resource – time. Today, air travel is the second-largest mode of passenger transport, with rail being the largest. Over the past decade, air transport has accounted for 35% of total passenger traffic carried out by all modes of transport in interurban and international travel.
According to statistics, conventional airline flights carry more than 1.6 billion passengers yearly, implying that one in every four individuals uses air services (Vickerman, 2021). All of this is owing to the apparent benefits of air travel. Air transport, in conjunction with other sectors of the economy, contributes to the country’s socioeconomic growth. As economic activity develops, so does business travel, and the need for speed and convenience, which are key aspects of air transport services, rises.
Strategic Analysis
Turkish Airlines first began operations in 1933. The Airline was called the “State Aviation Administration” at the time and only had three planes. Moreover, the well-known name Turkish Airlines first emerged in 1955 (Tümer et al., 2019). Turkish Airlines is not a low-cost carrier, but rather a large corporation that is crucial for providing excellent service; thus, passengers are given comfort in all classes. The backs of the seats are always reclined, and meals are provided regardless of the tariff.
Turkish Airlines offers three levels of service: Economy, Comfort, and Business. As an international air transport corporation, Turkish Airlines was voted “Airline of the Year” in 2013. Turkish Airlines’ recent triumphs include two notable achievements: the company’s revenue reaching $1.1 billion, as reported last week, and a record purchase of 117 Airbus aircraft (Tümer et al., 2019). The Air Transport News awards event was held in Montreal. The ceremony was attended by the CEOs of the world’s leading transportation corporations.
The political landscape in the markets where Turkish Airlines operates is highly variable. The corporation’s two primary markets are Europe and North America. Politically, the two areas are quite stable. The United States is one of the firm’s most significant markets. As such, the policies that this government can implement in regulating the business climate can have an impact on Turkish Airlines’ operations. Turkish Airlines has enjoyed long-term political backing in Turkey under the current government, which has helped the Airline overcome other aviation challenges. Another key aspect influencing Turkish Airlines’ operations is the economic climate. The global economic climate influences this company, as it operates as a worldwide airline.
The firm has a zero-tolerance policy for laziness and bad intentions. The firm loves and cares for its business and its passengers, and this honor demonstrates once again that Turkish Airlines is a rising star in the global aviation industry. This is the only worldwide award event that encompasses all the major categories of the air transportation industry. The purchase of new aircraft and the expansion of flight schedules demonstrate that the corporation aims to become a competitive and successful organization. Thus, the company’s strengths are its focus on expansion. It is crucial that Turkish Airlines prioritizes customer preferences and considers them when planning its activities.
Air transport is growing at a faster rate than other areas of the economy. The amount of economic growth is directly related to the level of demand for air transport, and air transport itself is a potent stimulant for development. The market for civil aviation services is evolving rapidly and is heavily influenced by the global economic environment. The direct and multiplier effects of linked industries comprise the civil aviation services market’s contribution to the local, regional, and global economies.
Currently, the traditional airline operating model, characterized by regular carriers with extensive route networks, is facing intense competition. On the one hand, low-cost airlines are challenging the competence of scheduled or otherwise network airlines by revising decades-old practices to reduce costs, even in unexpected areas; on the other hand, a new generation of high-speed trains is seriously competing with airlines in intracontinental transportation (Alcácer and Esel, 2015).
Having stations in the city center, which is much more convenient for the customer and saves time, and due to their ability to develop high-speed trains in Europe, where the distances between the leading economic centers are not very long, they can successfully compete not only with the network but also with low-budget air carriers.
At the same time, despite inter-industry competition, there are chances for airlines and train operators to collaborate. This rivalry poses a problem for Turkish Airlines, as it undermines the Airline’s popularity among consumers. Another issue for Turkish Airlines is its inability to successfully enter the Asia-Pacific markets, which are dominated by businesses such as Emirates Airways. This is a drawback since it lowers the company’s competitiveness, which upsets its plan.
Turkish Airlines’ primary success criteria include advertising, product quality, price competitiveness, management, customer loyalty, market share, customer service, e-commerce, management experience, and branding. These are the essential principles that drive the organization’s performance, enabling it to stay in demand and competitive. One of Turkish Airlines’ critical success factors is the comparatively inexpensive cost of flights, particularly in economy class. People who do not have enough money to travel from point A to point B are more likely to choose Turkish Airlines (Alonso Tabares, 2021).
Another feature that makes this firm appealing is its promptness. Flights are seldom delayed or canceled, which is an essential component in an airline’s image. These crucial elements must be maintained and developed for the firm to succeed in the future. These characteristics can be crucial in a consumer’s decision about which carrier to choose. Hence, they are critical in establishing a customer base.
Opportunities include the fact that technology is constantly evolving, providing a basis for innovation and various new developments that can bring profit and success to the company in the future. Technology can also help the company improve safety, which is also an essential criterion for customers. It is worth mentioning that the development of technology can also pose a threat to Turkish Airlines. This may happen because the introduction of innovations requires certain costs. If the company lacks the means to introduce these innovations, it risks becoming uncompetitive (Oeschger et al., 2020). The company will fall behind in progress and will be less attractive to customers. The company’s weakness is that it has not yet established a presence in the Asia Pacific region. This may encourage the customer to opt for other carriers.
Thus, the company has great potential. With proper management of all the resources provided to the company, Turkish Airlines can become a leading organization in the aviation sector. However, the company should take steps to mitigate the risks listed above. Additionally, to capture a larger share of the passenger air transportation market, Turkish Airlines must capitalize on its advantages and mitigate its disadvantages.
Strategic Choices and Reflections
Since the Airline has decided to expand the number of airplanes, the first strategy will focus on this. The massive investments this company will make in the coming years will help it achieve its strategic goals. However, it is worth remembering that expansion requires a significant amount of highly skilled personnel. The employment market is rapidly changing, and organizations that are concerned about their future rely on smart young people. A lack of job experience is no longer viewed as a drawback, but rather as an asset. Companies prepare professional top managers in a few years by inviting the finest of the best.
However, labor market rivalry encourages firms to use unconventional tactics to attract young workers, such as organizing special promotions, open-door days, and announcing contests and internships. Many major corporations have a multi-tiered structure for recruiting and developing young workers (Slatten et al., 2021). The goal of such a system is to recruit brilliant young employees who share the company’s ideals. At this point, youth are becoming one of the most important producing forces, with a high labor potential as well as social and labor mobility. Young individuals in the job market are characterized by their enthusiasm, drive for innovation, ability to learn quickly, and innovative, creative thinking.
Many well-known corporations begin their search for talent at top public institutions, targeting students and graduates. The primary motivation for attracting students and graduates is not so much the current demand for employees, but rather the pursuit of long-term objectives. Companies are focused on forming a staff reserve of young, active, dedicated, and ambitious employees who will develop within the company, study the specifics of its activities from the ground up, and eventually replace the current generation of employees.
To attract staff, the company can create a more favorable working environment. Additionally, to attract younger and more promising employees, Turkish Airlines should establish a clear career path that its employees can enjoy (Adiloğlu-Yalçınkaya and Besler, 2021). The advantages of this strategy are that the company will attract new employees who are interested in the company’s development.
The downside, in turn, may be that in the event of a lack of funds for investment and non-compliance with the financial plan, the company may slow down its development, which could render it uncompetitive. However, the expected results are reduced employee turnover, an improved company reputation, and increased profitability through investment. The risk could be that a wrong investment could lead the company to bankruptcy.
Another alternative plan could be to innovate, which will help attract investors from outside. On the plus side, this action can help to reduce the company’s costs and channel the energy into introducing new technologies in the company’s operations. The downside may be the risk of investors gaining too much influence over the company and interfering with independent functioning. The expected result is increased competitiveness, improved quality and efficiency of operations, and safer transportation. However, the preferred option is the first option, which relates to investment and staffing. It is more efficient and safer, as the company will develop independently, without external help and influence. The risk is that excessive investor influence could significantly alter Turkish Airlines’ management plan of action.
Plan of Action for Implementation
The implementation of the planned strategy necessitates a clear plan for the organization to follow over the next five years. The goal of this strategy will be to expand the number of planes and attract more passengers. This strategy’s vision suggests that the investment will enable Turkish Airlines to become a major player in the air transport industry. It is crucial to determine how the organization will balance its revenue and expenditures in this plan of action. This corporation will make significant expenditures on the acquisition of a new aircraft over the next five years. The primary objective is to achieve an income that matches the calculated amount. This can be achieved by supporting the company’s current status through the provision of quality transportation.
A key direction of the company’s development is the expansion of air transport routes, as the number of aircraft is expected to increase. Turkish Airlines must focus on the most popular routes to meet the needs of its customers. This will help make the company more popular among passengers, which will, in turn, increase revenue and, as a result, attract more investment. Additionally, the company needs to analyze global trends to identify underutilized routes and allocate its resources accordingly (Guliyev, 2022). Actions can be organized in areas such as advertising, customer satisfaction, and company expansion.
Addressing the Key Points
One of the Airline’s strategic goals is to create and strengthen its distribution and product marketing systems. It is challenging to maintain a high level of customer service for the Airline’s products unless all sales staff are aware of the importance of this direction and understand how specific actions impact overall performance. As a result, the key job in working with this group of people is to establish consistent goals, methods of customer service, and quality standards (Berkcan and Aksoy, 2022). It is also critical that all airline sales workers who adhere to service standards see a tangible benefit from their efforts.
In this case, the key indicator system serves as a tool for monitoring and analyzing work outputs, decreasing the risk of subjectivism in their appraisal. At the same time, each employee sees the link between their objectives and the company’s strategic goals, and unit managers have the opportunity to measure the effectiveness of each subordinate’s work and influence the process of implementing the organization’s strategy.
Continuous monitoring of changes in actual indicator values and comparison with target values defined in accordance with the development strategy enables managers to identify potential problems early on, recognize the need for timely management decisions, and evaluate the impact of subsequent decisions. An example of the initiative could be the introduction of mandatory meetings for staff to increase motivation (by 2014). Also, an initiative such as increasing advertising worldwide through deals with travel agencies should be achieved by 2015. The initiative to conduct training courses for staff is expected to be completed by 2015.
The current market conditions, which have a significant impact on airline operations, are characterized by the following main factors:
- Liberalization of the global air transport market
- Establishment and development of airline alliances.
- Changes in passenger preferences, driven by increasing demands for quality of service.
- Strengthening of low-cost airline positions.
- Trends in the consolidation.
- Internationalization of airline partners (travel agencies).
The circumstances established lead to increased competitiveness among enterprises, which are increasingly free to operate in the global market. The aforementioned issues have a clear monetary manifestation, which directly impacts sales volumes and operational performance (Čavlin et al., 2023). In this regard, it is critical for each Airline to conduct regular monitoring of its performance in comparison to other airlines as well as its own efficiency.
Customer satisfaction is one of the key performance indicators used to evaluate the company’s efficiency, compliance with its strategy, and competitiveness, as well as that of Turkish Airlines. Additionally, the organization should focus on income and new routes. These indicators will help measure the company’s development, identify difficulties, and resolve them at an early stage. This is required to prevent plan nonconformity and further deterioration of the company’s position, or possibly insolvency.
Conclusion
As a result, the global air transport business is one of the most active sectors of the global economy. The rapid rise of a highly competitive market, along with the deregulation and liberalization process, including intra-regional and inter-regional agreements, collaboration within multinational alliances, and other factors, has all contributed to an increase in competitiveness in the air transport sector over the last decade.
Vehicle accessibility defines a new way of life, separating communities into those who are fortunate, fully accessible to the social and cultural accomplishments of modern civilization, and others who are excluded from them. To remain competitive, Turkish Airlines must invest in its own development and expansion, which will help attract more passengers and increase the number of routes it operates.
Reference List
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