Tui Travel Plc Strategy Case Study

Abstract

The subject of this study is the determination of the current and future strategic positioning of TUI Travel Plc in order to maintain and strengthen the competitive advantage in the European tour operators industry and in tourism globally. The study is analysing the various methods that the company has applied and managed to ensure that it maintains its large share market as well as profitable growth and satisfactory overall profit margins. The paper examines the challenges faced by the company and the major emerging issues in the industry that affect the ability of the company to remain competitive. Innovation strategies and new products launched by the company as well as their effectiveness in light of improving the company’s ability to compete better in the increasingly competitive industry are examined. It also focuses on TUI Travel Plc as a major player in the tourism industry, notably in Europe. With the thriving of the tourism industry globally, TUI Travel Plc as one of the major industry players has encountered a lot of competition from existing and new players in the industry. This case study explores the mitigation strategies that the company has employed against the newfound levels of competition.

The applicability of Porter’s generic strategies to TUI Travel Plc competitive strategy is analysed, assessed, and drawn conclusions from. The future of the tourism industry is explored in the study and respective recommendations are being made. Furthermore, the direction of the industry in the next five years is discussed and related conclusions are being drawn. The competitive strategy of the company is found to be sound and the company is deemed to have a promising future. The company has invested in several strategies to ensure that it maintains its competitive advantage in the market. The company’s future in the industry is secure if it will implement the suggested strategies towards improving its competitive strategy. By doing so, it is expected to perform even stronger in the coming years and can further strengthen its competitive position. Finally, the conclusions for the entire study are determined and related recommendations were made.

Table of Contents

Abstract 1

1. Introduction 3

2. Dealing with Competition 5

2.1 The Competitive Strategy of TUI Travel Plc. (Porter’s Generic Strategies) 5

Cost Leadership 6

Differentiation 7

Focus 9

2.2 Innovation Strategies 10

2.3 Future Strategy for TUI Travel Plc. 11

2.4 The Industry