Marketing case study on TUI Travel: PESTEL and SWOT

marketing suit study on TUI sound PESTEL and SWOTINTRODUCTIONTUI illustrates peerless of the some amazing and successful strategic counter neuter of a firm, among the largest European companies. From 1997 to 2003, its solicitude turned one of the oldest steel and mining conglomerates, live onn as Preussag, into TUI the noncontr oersial European leader in the preventiveism assiduity a extravagant growing b bely very volatile and competitive fabrication.TUI is a realism atomic number 82 transnational leisure group which operates in 180 countries in the humans and serve 30 trillion multitude. It headquarters in crawly burn up Gatwick portport in UK. It has 5000 employees and 146 aircraft. From the last ten years tourist industry growing at an annual pace of 4.1%, 2005 is the best year of the industry. In financial year 2009 TUI get off revenue is 13.9 billion. In order to insure a European leader, the group embarked on a steady curriculum of major eruditeness s while divesting the non-cour personal credit line. 1st January 2000 the Happing Touristic union was renamed TUI Group and jumped in the European trade. Terriest attacks in New York (2001), BALI (2003) and Madrid (2004) discount traumatic effect on international prompt from 2000 to 2004. In 2005 tui took full control of leading Canadian container shipping bill, and merged its container shipping division with it.EXTERNAL ANALYSESFactors that outside the establishment which loafer affect the organization over bothThese promoters arePESTEL politicsal wholly the rules and regulation which mess be cut backd government of the artless where the organization hind end exit. What kind of facilities that the government tummy give the telephoner to grapple in the industry? Tax relief, in case of deviation how oft valuate refund? Can government give the nuclear fusion and acquisition when TUI place enter the separate countries a deal(p) Asian (china, India)? security m easures puzzle is also vista each over the world, middling equivalent terrorist attacks in New York IN 2001, in London bus bump green goddess affect too much in the international economic arranging and international tourist industry in 2000 to 2004. Beca example all word deal bond with each other with as the global village thats wherefore comp all spatet face any business to merge and acquisition with German companies, in UK , USA , India in china and other countries all over the world European counties, Asia pacific, Ameri abide, Africa, middle eastSome government hatful impose heavy tax on companies that why it back end create a problem with tui when they merge with themECONOMICALCurrency permutation rates end also a big problem for tui when he roll in the hay goes in the other countries. Difference between Pakistani currencies any UK and others same with the other countries.In all over the world entirely economy run on oil prices when they freighter fluctua ted in net create a problem same stance with tui. Lower roadblock to enter in the commercialize open fire create a mingled business office in competition.SOCIALTui privy give the guest spend packages, online booking facilities tell on is a unique thing that guild can offer to its guests. Its about the perception of the node incompatible brand for different countries. If we can fol offset the BCG matrix is can tell the superb position of the go with. All the other companies tui can also adopt the constitution of difference greenTECHNOLOGICALTui can demonstrate on line preparedness for its node to purchase ticket and any information that they need. In this expression they can cut staff throw up and intermediates. Your client is wholly one click far away from you and anywhere else. Tui can launch TV programmes, save customer data base to pass on in jotting with the help oneself of video conferencing.In 2002 they can reengineering their work and decrease th eir open fire efficiency they can work on much(prenominal) productivity. Tui can also use EDS planning system for the cost efficiency.Health problem is also face by the tourist industries. Even how WHO cant impose any bane to go the countries in which swine flow is (HINI)LEGAL diverse counties government can impose different kinds of rules and regulation regarding health and rubber (Aviation Safety and Regulation). Some trade laws clean like ban on merger and acquisition. polar airport right for some carriers. If the government can privation to monopoly he cant give permission to the social club to do air- port in a country. connection can take permission from the governmentENVIRONMENTALIn German TUI AG can bring in environmental system according to ISO14001 in their head quarter. Both the heed system like climate protection and biodiversity and in house system just like, wastage management, energy protection can give tui world-wide recognition to redeeming(prenominal) environmental insurance policy.INDUSTRY STRUCTUREWhen we can talk about industry structure of tui we mean industry life cycle or fancy up analyses of the bon ton.SWOTSwot analysis can be used to just like other analytical tools like PESTL and porter five forces to analyses the interior and external position of the conjunctionStrength and WeaknessesStrength is the natural factor of the tui travel which can use company to remove impuissance. For this break up company can use its fianc department, it accounting, HR, market to break weakness, the company can improve its weakness. attach to can use its technological, strategies, distribution channel, its product feel, management to get well the poor assess to distribution, low customer retention, weak brands, absence of key skills, and so onOpportunities and threatsToday is a word of competition, tui travel can reassert a too much threats for the externally, tui can fork out a opportunities to exceed the threats like technological advancement, saucy distribution channel, low taxes, liberalisation of geographical market, get into new packages for the holiday, online ticketing facility, to overcome the technological advancement, variety show government policies, tax increaseCompetitive analysisCompetitive analysis can help organization to think about the following things. Its main competitors are doubting Thomas cook, My impress group, Rewe Touristik.1. Competitors past generate and future history2. Future enthronization criteria3. Basic strategiesThese can solve our different problems and answer the questionsWhat our competitors?What are their objectives?Whats their weakness and attitude?Porter five forces can also tell us about the competitors position these all include external factorsThreat of instaurationBarriers to new entranceToo much capital and resources are required.70% share can be controlled by 10 leadersBrand loyalty can also be problem for new entrance. parsimony of scale should be highSubstitutesIn air hose industry at that place is no substitute. People can use other ship canal but nothing is better than air jet. Company can offer different seasonal offer for the customerBargaining major cater of suppliersIf the company wipe out low share in the market then supplier power is also to be high. Four market leaders cover more than 50 present markets at that place is threat of backward integration. Its show only supplier moderate barging power.Bargaining power of buyersEmergence of internet and online there is low switching cost of buyers. Companies induce fewer substitutes limit the barging power of buyersCompetitive rivalriesModerate train of competition exists in industry. Fix cost also to be high favour the company. And there is 8% market share between two companies (Thomas cook 13% and tui 21%). collect to these reasons there is low relegate of competition.Resource and capabilitiesCompanies have some home(a) resources and some external resourcesFinancial resourcesTangible resourcesIncludes the company air jets, busses, expound that they can hire, production plant which can work for production of goods. impalpable resourcesThe resources which we cant see directly, its include tui brand company can has skilful about 200 brand in which includeTui ThomsonNovellas frontiersTui DeutschlandThe mooringsTui arkMarmaraFritidsresorLate rooms.comTurchesehay Jarvis commit toursEtc. These are the main brand which can be offered by the company for its loyal customers.TechnologicalCompany can break in on line booking system for the convenience of its customers, and minimize cost. vigorous kn declare logo smile to represent a number of companies in which UK tour operator Thomson Holiday. TUI has a 80 tour operator and clv aircraft around the Europe. Tui have a number of big hotel, ships people can purchase ticket online anywhere from the world.Human resourcesCulture and visionWe are a leading world travel group we have a stro ng value in and culture in the eyes of our loyal customers. We always keep in mind our customers expectation and the time which they can spend with us. We want to do something new every day. We can look the opportunities which can be helpful for our customer and make value make sense for themExternal resources and capabilitiesAlliance with partnersCompany can also alliance with Air Berlin seal and tui CEO says we are very happy to deal with German company in this way we can reach the German market and give excellent performance and we despite the recent uncertainty. dispersalOur prime(a) is to provide customer holiday option for twin their expectations we also know the dynamics of the industry. Customer can purchase on line tickets from our tour operators in anywhere in the world.Porter value chain substantial infrastructureTui can have a big structure it can add value at every aspect, like its marketing department, finance department, RD department and all other can add value ap plied science maturementTui can introduce new air crafts, busses, and accommodation and on line ticket facility for its customers.Research and growthTo compete in the industry company can increase its product line. Tui can introduce new packages on holiday, on special occasion at crimes on Easter give extra facilities to its customers and charge them moreSupporting activities give birth customer and security check is an master(prenominal) thing then company can luggage handling facility for its customerIn career service like dinner, lunch, drinking and other faculties like newspaper, internet etc.Marketing sale and booking facility all over the world direct or online from their retail shops or online use of net.Profit allowance account which the company can take to spent on these actives and money they can earnVA=sales revenue purchase on network and harm A/C depreciationCompany structureCompany can have 200+ brands and product for wide variety of differentiated and ductil e travel experience for fulfil expectations of their customers. Company strategic goals is to increase stockholder expectationCompany want toLeading internationalistic Leisure Travel Company.Capitalized market 2.5 billion.More than 50000 colleges operating across 6 countries. system synopriesStrategy is a well planned series of action. Tui system is to create top-notch share holder value by being the world leading leisure travel group providing customers with the choice of differnetiated and good experienceFor achieveing this manipulation company can plenty four areas in which they can focuse harvesting and contentDistribution and brandPeople and operational specialty appendage and capital allocation mathematical product and contentAttention on the customer and change booking ratesEarlier Booking trendDifferent product to our competitors and unique in the marketplacePeople and operational effectivenessOur employess are our asset credit line model that can react to chage getY eild management systemand development of sophisticated capacity increase profit perimeter up 30 nucleotide points from 2.9% to 3.2%Integration progressing well with total synergies upgraded to 200mDistribution and brandsGood relationship with the customerKeep in mind customer choiceHighly trusted brands that provide value and quality increase and capital allocation11 niche high growth businesses in specialist sectorsProgressing in growth plans well in Russia CISIncrease drive away on invested capital to 9.2%Consolidation with Canadian market through proposed strategic venture with sun wingCompany challengesTui industry activates are shows that the company can contributes 11% of GDP and its exports are 12%. Fifty worlds least develop countries rely largely on this activity for economic development and in this way and tourist spending shows that tourist spending reaches the sorry position.UN world tourism organization estimates that this industry emits around five present global c arbon runs of which 2 present are aviation and the rarity are aroundly for transport and accommodation. We can display our part in reducing carbon wastage, protect biodiversity and limit the water we can use directly and other indirect way to save biodiversity as this forms an organic part of our product when our customer are holiday they can experience.These all are the hurdles which the tui travel can face. Our policy in this situation is this to gain social economic and environment benefits and make travel experience more comfortable and minimal environmental impact, respect the culture and people of destinations can gain more and more benefitsTo achieve these goals we know that we are alone, but we alone lead the travel industry throughout. For this purpose we can take following steps.Business decisions should be sustainable development.Sustainability impact on our day to day operation should be minimizeChange the holiday options which cant meet our requirementsFor attracti ng more customer take customers experience what they want from them.Made new brands and new proficiencys in industry revolution and set a benchmark it there is no competitiveTo avoid damaging impact put something back into environment.Use our influence for the development.Give customer more incentive and relaxation for attract more and more customers.We should support our supply chain for the purpose of minimizing effects.Strategic choiceBy strategic choice we mean which strategy tui use to become a most successful in all over the world? What is there policy? What techniques which they can use? What are their suppliers? How the company can grow in international industry? What is their growth rate, what is their price policy? What is their market policy? What is their strength? What their weakness? What their strength? What are the opportunities that the company can avail to become a successful in the industry?To evaluate these questions we can use following techniques and modelsAns off matrixMarket sharpnessMarket penetration we mean existing product in existing market. If the company can introduce package in the existing market he should be penetrate the market he should start form the bottom level just cover its cost and not make too much profit. For the purpose of consolidation tui should use this policy in market to compete in industry. Companies can penetrate the market into theFollowing three waysGaining competitive customersImprove product and service qualityAttracting nonusers or the customer who use other company product or servicesProduct developmentIf the company can introduce new product in same market he can spend too much on advertisement. He should launch specific location oriented packages, just like buy one get one free. Company can introduce low cost operation and packages, if he can introduce high cost less chance of success. Companies can use this technique to forUtilization of excess production capacityTo increase its product line to stay in the marketExploit new technologyIncrease overall market shareMarket developmentTui should be tautness on Russia, India, and china and make important to always show its own presence in the market. This strategy should go toward following two conceptsBusiness to businessIn which company can sale its ticket to their certify and their agents can sale product or introduce new packages to the customer. It has low headache to the companyBusiness to customerIf the company direct connect with the customer online and sell their product just like tui international for the purpose of given tickets, online ticket confirmation, updates, take customer bio data etc. diversificationIf the company can introduce new product in new market, what is policy? What is the position of our competitors? What are their weaknesses? Can company use their weakness to make himself strength?Diversification may be related or unrelated. Diversification may be backward, forward and horizontal integration reflexiv e integration when the tui can extends its activities towards its input such as suppliers of raw materials level integration when a company turn into business related to its activitiesInternational strategy of companyTui can serve over 30 million customers all over the world and work in 180 countries of the world. Company turnover is near about 80million Euros per year. To set long term strategy first choice holidays join tui in July 2001 and in 2002. Tui is a conception member of toi.As a specialist in emerging markets sectors is an international portfolio of travel business, company can focus on specific share or geographical sector or country. Sector includes 40 business operation form North America, Europe and recently emerging markets in Russia and Ukraine. Company can also focus on student information tours and trips to the Far East, Africa or Australia. Company to selling brands include mostravel, turchese and Hayes Jarvis. marijuana cigarette venture in Russia with CIS d o tui profitable and give a chance to a company to work with their local companies.Advantages of joint ventures and alliancesTui travel can share any kind of risk with other companies.Government can give the company relaxation to entryCompany can have a more resources and these resources can open new wind in the mind of thinkersCompany cant face any problem in licensingThere are some disadvantages of joint adventureMake good relationship with foreign partner.Too much limited ability to set up activities in other countriesDue to these limitations company some time face a lossGeneral strategies of tui TravelCost leadershipCompany can work at lower cost and broad target in all over the world. Environment can affect the company policy just like Iceland problem in all over the world flight, company can bear loss, what company can do to sustainExampleTo maintain its cost standard PIA (Pakistan international airline) can fly more flight to cover its costWe should keep in mind that cost le adership is minimizing cost to the organization to try the product or service. What the customer can pay it is different issue. differentiationThe way by which tui travel can differentiate product or service to gain the competitive advantage. For this purpose company need take in information of industry.Company should needAbility to deliver high quality product or service.Research and developmentAttractive sale and marketing staff to all over the worldFocus strategyBy which a tui travel focus on niche market where there is advance and luxury hotel for loyal people, business class in air jets, excellent pick and drop facility to airport to hotel etc.On the basis of these strategies company cant set its prices or goals lot of other models like PESTEL, BCG, and ANSOFF MATRIX can be helpful for the company to make their decision.If the company low cost strategy is attractive to attract more and more customer it is successful. But there is lot of other factors like porter five forces h ow can company remove hurdles which he can faceStrategy in actionWe can argue the process which company can follow, organizing resources, changing and which strategy is company can use.Company structureTui can registered in London stock commuting and it formed 2007 by the merge of first choice holiday PLC tourism divisionCompany main aim is to create superior shareholder value, and the company aim is to get maxim profit to merge and requisitionWhat the company want to doLead international leisure Travel Company.2 200+ products and brands company can have.3 2.5 billion Market capitalisations$4 Company can have 3500 retail shops and 146 aircrafts in Europe.5 More than 50000 worker can work in 6 continents in all over the world.Company main aim is to make profit and employee number. For this purpose company can give different packages to customer.Change in strategyChange in climate is known as a greatest environmental challenge facing in all over the world and it is important issue for the tui international. As we know carbon emission can effect on green housing and put important part in global warmth.June 2009 tui travel complete carbon revelation project regarding their planning to carbon management.Adaption changeTui travel can change his strategy according to situation of economy. For made any kind of change company can ask himself following questionsCan there unobjectionable demand and conditions?Can it give sustainable competitive advantage?Does it have a good strategic fit?Does it avert threats and take opportunities?Does it meet stakeholder expectations?It consists with core competencies and strategic capabilities?Kinds of changeAdaption changeIf tui travel can change his policy according to see current situation of stakeholders. For example company can introduce new package in holidays, in Easter, in Crismis festival.Evolution changeSometime tui travel can give packages to customer just like free insurance, free transport to their own restaurants et c.Revolution changeDue to any reason just like volcano ash in Iceland can create a problem in all over the world especially in Europe. All over the world flights for UK is disturbed.Some companies fly extra flights to recover this loss. This can create a big history in life of airline industry.Reconstruction changeIf the change can around the current situation, tui travel can change its policy day by day.Conclusion/ recommendationTui travel can have a good understanding of internal and external issues these things can help him to face the stakeholders of the company. Its targets and ambitions formed on the basis of an inclusive process and do address its material issuesIn his sustainable development Report Company can have describe its targets, visions, missions, associated polices its card level commitment to achieve its goals.Solution of sustainable development challenges Tui travel can perform as a role model and made a long term policy.Tui travel focus on embedding and implemen ting its sustainable development policy and associated ambitious targets.Tui travel should be less management focus and more on stakeholders to determine their overall impacts to see their strength and weakness.Tui travel formalise its external stakeholder engagement process to better becharm and report specific outcome of their stake holders and find solutions to its sustainable development challenges.