1912.0 Akbank Part B: Itís a Young Country
Changes in the external environment and internal responses to these changes demonstrate the impact of government policies and administration on the strategic and tactical options for businesses - government decisions can produce unanticipated threats as well as provide unforeseen opportunities for businesses. This case looks at the provision of financial services both when a banking system is weak and inefficient and when it is liquid, solvent, and highly competitive, seen through the lens of Akbank's adaptation to the evolution of Turkey's banking sector. Of special interest are the effects on financial depth and financial inclusion of a commercial bank's efforts to align its internal capabilities with external opportunities. The film component (available soon) gives one a deeper understanding of both Turkey and Akbank in 2008, to better appreciate the context of Akbank's strategic and operational options. It portrays the dynamism of Turkey and Akbank, as well as both Akbank biases and beliefs of potential customers that might lead to missed opportunities in the provision of financial services for low income households and family businesses.
After the 2001 financial crisis in Turkey, the consolidation of domestic banks, entrance of foreign banks, and steps taken by the government in strengthening the banking sector made the banking sector much more competitive. This case (Part B) can be used to analyze the best course of action that Akbank should take in maintaining its lead in the market.