Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 16 June 2015
Revision date: 19-Jan-2016
Length: 5 pages
Data source: Field research
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https://casecent.re/p/131845
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Abstract
This case explores the strategic options available to TAV Airports Holding, a Turkish firm, after it withdraws from a bid to build Istanbul's newest airport. The new airport would eventually replace Istanbul Ataturk Airport, where TAV makes 43% of its current revenue, and losing it will leave the company without a presence in its nation's largest city. TAV weighs four options: continue expanding internationally to the US and other distant markets; buy an ownership stake in Istanbul's other remaining airport; diversify into related businesses; or seek out large infrastructure projects unrelated to airports. Will vertical or geographic diversification be more likely to ensure TAV's future?
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Abstract
This case explores the strategic options available to TAV Airports Holding, a Turkish firm, after it withdraws from a bid to build Istanbul's newest airport. The new airport would eventually replace Istanbul Ataturk Airport, where TAV makes 43% of its current revenue, and losing it will leave the company without a presence in its nation's largest city. TAV weighs four options: continue expanding internationally to the US and other distant markets; buy an ownership stake in Istanbul's other remaining airport; diversify into related businesses; or seek out large infrastructure projects unrelated to airports. Will vertical or geographic diversification be more likely to ensure TAV's future?