Thomas Cook Strategic Analysis
The travel and tourism segment is one of the more highly competitive industry sectors due to the huge number of international, regional and domestic companies that all have access to similar packages in terms of destination offers. Pricing, in most instances, represents the key concern of consumers and businesses with specialised adventure and environmental tourism along with tourism packages as growth segments. Whilst the last two areas (adventure and environmental tourism and tourism packages) are strengths of Thomas Cook, the company’s limited revenue footprint that is concentrated on the UK, and continental Europe was discovered to be a weakness. It seems that the company has not been exposed to or marketing to a larger travel and tourism segment as the above two areas represent approximately 75 percent of revenues.
Thomas Cook Strategic Analysis
In looking at competitive factors, the company is of moderate size when compared to industry leaders such as Expedia, Travelocity, and American Express. Growth by acquisition was found to be the key method employed by these companies, along with German-based TUI that has taken over the domestic leadership position in the UK from Thomas Cook in just over a decade. In contrast, Thomas Cook has not pursued this strategy as well as a broader travel and tourism destination footprint which seems to be limiting its growth and industry positioning. With a brand name that offers a 175-year travel history, Thomas Cook has the reputation to pursue and accomplish more aggressive growth through acquisition and marketing awareness to compete with competitors and broaden its market positioning and increase revenues.
The global tourism and travel market has been growing since 2010 at a rate of 4.5 percent since the recovery from the 2008 recession (Thomas Cook, 2016). One of the key segments in the industry represents an increased demand for international travel that accounts for approximately 30% of Thomas Cook’s revenues with the domestic UK and Ireland as the largest segment at 35% (Thomas Cook, 2016).
This report seeks to analyse the company’s business and revenue segments, industry sector and provide a competitive analysis of the company. It will also delve into its travel offer segments and competitive analysis using key tools such as PESTEL, Porter’s 5 Forces, a SWOT Analysis, Boston Matrix and Strategy Clock. These tools, which are contained in the Appendix, will be referred to herein to provide an understanding of key points. The above will form the basis to determine varied understandings regarding the company and industry sector. As the findings segment represents the key aspect of this report, it will serve to aid in drawing preliminary conclusions and if more information is needed.
The deductions section will synthesize what has been uncovered in the findings segment in order to arrive at what has been uncovered and the completeness of the findings research process. This also represented the opportunity to discuss areas that might warrant additional research or investigation. The findings and deductions will form the basis for summarisation in the conclusion which will discuss any potential research limitations.