SWOT analysis for TUI Travel PLC

grind away analysis for TUI pop off PLCTUI Travel PLC is organize through the merger between TUI Tourism First Choice Holidays PLC on 3 September 2007 and listed as TT on the London stock(a) ex channelise in FTSE100. TUI Travels headquarter is in UK. The keep club itself operates in mainstream sector, and specialist sectors that includes registration end points, specialist activities. Today, TUI Travel PLC, the success leisure get going company, have to a greater extent or less 27 key source markets, 500 000 people that they employed, and operate their line of strain in more than 180 countries with 30 million customers. TUI Travel PLC (2010)SWOT analysisStrengths-Well recognized brand-Superior management team effective operations-Market leader advantageously responsible bodily governance-Good marketing skills economies of cuticle-Good financial stability.Weaknesses-Heavy reliance on technology-Capacity-led volume reductions backfire-Diverse portfolio and autho risation risk to cost of financing.Opportunities-Expand Low-Cost Airlines/ form Alliances-Doing Investments-Market Specific Targeting (Ecotourism, Medical Tourism)Threats-Climate change-Hedging and exchange rate-Geopolitical/ natural catastrophes/ pandemic, add up chain / result bereavement-Supply Chain / Product failure-Aviation cost flow fund of capital of the United States cost-Economy decline and impact of consumer demand capacity commitment-Decline in market sh arStrengthsThere atomic number 18 five strengths of TUI. First, TUI Travel PLC has more over than 200 brands. Most of the brands are well recognized much(prenominal) as TUI, Thomson, Fritidsresor, Jetair, etc. And most of these brands are the trusted brand that tether in the market place. Second, they have many experienced leaders and too they have around 50,000 colleagues that commit to TUI Travel PLC where the company builds a erupt working condition for employee much(prenominal) as reward, employees survey, etc. Through their boss management team, the company has an effective operation which are flexible business model where they can adapt and meet to the changes happen, strong performance, synergy, and merger desegregation processing well. TUI Travel PLC (2009)Third, they are the number one travel websites in UK Germany by visitor numbers, number one in water found holidays, snow sports, adventure, etc. TUI Travel PLC (2010) shows that TUI Travel PLC was a market leader. Since they are the market leader, they are well responsible in governing their corporate business which is being ethical such as controls the usage of light speed emissions. Fourth, TUI segmented their market into niche market that provides product divers(prenominal)iation. Their distribution strategies are through internet, call centre, and retail shop. Since, they are the openhandedst distributor in the large market, it is certainly benefits them such as supplier advantage, innovation/ RD, and cost reduction . Therefore, company has effective marketing skills with an efficient distribution channel which helps them to reach customer satisfaction. And Fifth, TUI Travel PLC maintains their finance stability through hedging by a group of expertise and cash in balances from the strong birth with banking financing partner. TUI Travel PLC (2009)WeaknessesThere are some weaknesses that we have identified. First, TUI is highly relying on technology to operate their business in servicing and trading around 27 key source markets. So if thither is any faulty, it may resolve the business activities. Second, their results in planning on increase volume of deal which offers low price bid are not to their expectation, they get legal injury speculation on the market situation. Third, risks such as liquidity and cash management may happen when companys expansion grow so sporting and diversify. TUI Travel PLC (2009)OpportunitiesSome opportunities may happen such as profits margins allow for be inc reased if take chance of low-cost airlines such as Air Asia, Etc. or forming alliances since people likes to travel in budget airline with their limited budget. Second, doing some investment and expansion since at that place is growing markets around such as in South tocopherol Asia, Africa, Middle East, Etc. that have a superb infrastructure and destinations. Third, shoot for hot market segment since ecotourism and medical tourism are appear because people requisites to travel for their own purpose such as want various adventure and have treatment.ThreatsCompany need to look off the threats which are climate change due to the global wastes such as carbon emission that will affect the travelling activities. Next, fluctuation of outside exchange and fuel prices that may interrupt hedging process and fallacious economy that may cause cost base increase. Third, political dissymmetry such as riot, natural disaster such as tsunami/ outlet eruption, and diseases such as H1N1 w ill affect the operation to the desire destination and safety of customer. Fourth, even though TUI is a big distributor, building relationship with supplier is still important so that they able to maintain their supply chain and provide the qualified product to customer. Fifth, if not able to ripe the fund and capital cost of aircraft it may cause a rope of expenses. Sixth, company need to be prepared that there might be economy decline that bring impact of consumer demand capacity commitment. Seventh, TUI is not the only one that keeps progress in the tourism industry there are many competitors that TUI needs to be informed. TUI Travel PLC (2009)RecommendationSince there is booming in the tourism industry, competition is arise. And TUI Travel has their main competitors which were doubting Thomas Cook, MyTravel Group, ReweTouristik, and First Choice Holidays. To be able to maintain their position, my recommendation to TUI travel are international strategy and differentiation fro m their competitors in attract customers, pile up market share, and growth where there are opportunities that actually can be apply from my SWOT analysis such as alliance, target to new market segment, expansion in other country, Etc.TUI Travel is a big company and operates in many sectors. They have big responsibilities and challenges in running a big company. My recommendation to TUI travel is monitor lizard well their business performance such as add value product and service in achieving customer satisfaction and loyalty, innovation, social responsibility, build break in working conditions, and upgrade technology changes in achieving better information.ReflectionFrom this report, it is unconditional for TUI Travel PLC to analyze and make sure to have a good research before take any strategy action. Through analyzing and fellow feeling the PESTEL and SWOT analysis, I believe the company can still take place to emerge with the opportunities that they can get, handle their ch allenges, and develop their business. Because through analyzing, company is aware of whats happening and will able to find solution in different challenges that they may face.I have recommended some solutions through the capability that the company did not aware and it can be works on it. It will be successful solved the situation if the company implement and monitor it well. And through this report, I learn and experience a lot in how to analyzing and conduct TUI Travel PLCs SWOT, PESTEL analysis, and recommend solutions after a better consciousness in the lesson of SWOT, PESTEL analysis, and discussion of group presentation.