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Numerous group as TUI, Expedia, Go Travel, Club Med are present in the French market but Thomas Cook is a very good model in term
of strategy, positioning and growth
Indeed, with 3 million annual customers in 2009 and a market share of 13%, Thomas cook France is a second major tour operator in France
offering a large range of tourism and services through all over the world for all the budgets. Thanks to the acquisition of Jets tours and results
in net progression, the group is now able to develop a strategy based on the innovation and on it network growth.
In 2012, Thomas Cook wants to reach 20% of market share on the tour operating market and is interesting to explore the strategic position of
the groups to achieve its objectives.
Throughout this report, we are going to analyze the macro-environment of the group thanks to the Pestle Analysis and the five forces
framework, as well as it strategic capability in order to understand it strategic fit and direction with Environment.
2.1.2 Economic
All stakeholders are strongly influenced by the economic situation. Tourism is one of the most resilient industries in the world. "The
international tourists arrivals are estimated to have declined worldwide by 4% in 2009 to 880 millions. In the same year, international
tourism generated 611 billion in export earnings "according to the world tourism organization.
Cause to the global economic crisis and the problem of the H1N1 Flue, the short distance travel have been privileged face up to the purchasing
power diminution. Indeed, in France, only 20% of the population traveled in a foreign country and 46% didn't go on holidays cause to the
diminution of their budget. The decreasing of the Euro and the unemployment augmentation can represent also a threat for the French
customers.
Moreover, the pressure on the fuel prices by the speculation, the conflicts or by the OPEP countries can cause majors impacts in the Tour
operator's strategies because the oil prices is also an important factor in the package holidays industry.
2.1.3 Social
Nowadays, we can see a rise in tourism by elderly and by the student. News customers' expectations emerge and influence the tour operator's
offers.
With the development of cheapest holidays (particularly in Mediterranean countries), the travel abroad became banal and now, lot of people
are looking for a consumption more responsible. The attitudes concerning safety and environment play from now on an important role in the
customer's decisions
2.1.4 Technological
With the internet development, lot of actors offer competitive price and also at the last minute. This entire permit for the customers to choose
and to compare
The impacts are considerable because the online reservation and sales permits to eliminate staff, intermediaries and in this way tour
operators have to adopt their strategies in order to don't lose their customers. Nevertheless, Internet is also a low barrier for potential
entrants.
Internet has also permitted the emergence of platform like Trip Advisor. Just in few seconds the customers have the power to destroy the
reputation of a company.
2.1.5 Environment
The sustainable tourism represents a good opportunity in the Tourism industry. We can see consumption more responsible and the
augmentation of "ethical packages holidays". For example, KUONI group realized a partnership with some organizations or associations to
promote tourism more responsible.
However, Tourism can contribute to the degradation of the environment (CO2 emission cause to the aviation contribution, green house
effects, pressure on the local resources and water for some countries...).
Natural disasters like the tsunami, Caribbean hurricane, Iceland disruptive volcano have major negatives effects. At long term, these events
can cause many problems on destinations.
2.1.6 Legal
In France, the employment law concerning the working time (35 hour per week, 5 weeks of holidays) has permitted to the French people to
travel more but on shorts distances which favored the development of "short stays"(Marrakech, Roma).
3 - Task B
The external factors play a major role on the tourism industry and its actors. Now that the macro-environment analysis has been realized, the
second parts will deal with the strategic capabilities of Thomas Cook France.
SUPPLIES
COMPOSITION OF THE PACKAGES HOLIDAYS
MARKETING
AND
SALES
SERVICE
Figure 3 Thomas Cook France Value Chain
3.3 Resources and competences
3.3.1 Physical resources and capabilities
Even if Thomas Cook is a service provider, the tangibles goods that it possesses take on a strategic importance.
The most important factor for the group is the utilization of its most important physical resource: its 660 agencies on all the French territory.
These agencies permit to develop a good quality in term of sales and advices but also permit to identify in "live" the demand evolution.
Thomas Cook is the first tour operator which covers all the territory thanks to its distribution network. TUI Travel, the leader on the French
market arrive in second position with almost 400 agencies. (..). The most important factor for tour operator capabilities is
the utilization of the distribution framework. More than 60 % of the sales are carried out by the agencies network.
Moreover, Thomas cook possess a quite sophisticated IT infrastructure thanks to its partnership with TravelTainment. Thanks to a
performing tool concerning the online reservation, the group proposes a high technological solution and became the first group in France to
put in place such a partnership.
Since 2006
THOMAS COOK
CHAIRMAN
2004 - 2006
MAEVA
Group strategy Director
2000 -2004
VOYAGES-SNCF.COM
General Director
1996 -2000
PIERRE & VACANCES TOURISME
Marketing and Communication Director
1995 -1996
CLUB MDITERRANE
Marketing Director - France
1990 -1995
UCPA
Marketing and sales Manager
2007
Evolution
Cash flow
Staff costs
1.900.000
400 000
4.200.000
1.300.000
-54,76 %
-69,23%
Financial
Human
Financial
Human
Physical
Intangible
Capabilities for competitive
Advantage
Intangible
Physical
Figure 4 - Threshold vs. Unique Resources /
Competencies
The principal competitive advantage of Thomas Cook France is its reputation and brand name which are two elements which permit them to
be the second leadership on the French market. With more than 150 partnerships, 4 billions of customers and a strong presence in the
international market, the brand Thomas Cook has a good reputation and notoriety.
WEAKNESSES
Excelent brand image and notoriety
Human resources: Decrease of the wages
Competitive distribution network : 660 agencies
High Chairman substitutions (4 in five years)
Human competencies
Financial resources: Negative gross operating
profit
Positioned on all the segments
Low cost with "Club Jumbo"
Mid-range with
Up market with "Jet Tours"
The group is late on the internet distribution
network
Intangible resources: Lack of identification on
other Thomas Cook brands
Strong partnership and relation with suppliers
Net Income growth
Table 4 - Strengths and weaknesses
4. Task C
Thomas Cook France have a strong brand image and its communication strategy is based on its knowledge and experience
The customer is in the center of its preoccupations. Their only objective is to give at the customer an unforgettable experience. For example
Thomas Cook France is the only company who propose an assistance in French in their "village holidays"
Purchasing power diminution
Thanks to its new low-cost product "Le Club Jumbo", the group can face up to the global recession and propose substitution product and
services to maintain their sales volume
Internet development
X
The group is late on this segment. The sales represent only 11% of the sales. The Chairman has decided to invest in this network and wait for
the next years
Appropriate strategy thanks to the development of an online platform "Vacances trs prives.com"
The sustainable development is a priority in the Thomas Cook strategy. Since 2007, the group put in place a strategy to reinforce their image :
1 package holiday bought = 1 tree planted in Indonesia
The group propose a new offer positioned on a niche segment: luxury package holidays at decreasing price scale
-Thomas Cook propose competitive prices thanks to its network and partnerships
-Strong relations with the suppliers which permit economies of scale and to be competitive
-Pricing policy
Servive of quality
Partnerships
150 partnerships
.
Table 6 - Thomas Cook France match with critical
success factors
References List
Books
Gerry Johnson, Kevan Scholes and Richard Whittington, 8th edition, Exploring Corporate Strategy, Text and cases, 2010
Gilian Dale, BTEC National, Travel and tourism, 2007
John Beech, Simon Chadwick, The business of tourism management, 2006
A.K Bahtia, The business of tourism: Concept and strategies, 2007
Viviane Tauran-Jamelin, Marketing du tourisme : 1re et 2me anne, 2002, France
Internet
Journal du net, 2006, Qui sont les championsdu voyage ?
Available at: http://www.journaldunet.com/management/0608/0608149-match-tour-operateurs.shtml
Tnooz, 2010, Build your own package holiday on Thomas cook and you actually go with Expedia
Available at: http://www.tnooz.com/2010/01/08/news/build-your-own-package-holiday-on-thomas-cook-and-you-actually-go-withexpedia/
Journal du net, 2010, France : Le march du tourisme en ligne
Available at: http://www.journaldunet.com/cc/10_tourisme/tourisme_marche_fr.shtml
Strategos, Pierre Amalou,2009, Denis Wathier, prsident du directoire de Thomas Cook France
Available at: http://www.strategos.fr/spip.php?page=article-numero&id_article=775
Synolia, 2010, THOMAS COOK VOYAGES DOPE SES PARTS DE MARCH AVEC SUGARCRM
Available at : http://www.synolia.com/cas-clients-sugarcrm/thomas-cook-voyages-dope-ses-parts-de-marche-avec-sug-2.html
Available at:
http://www.radiobfm.com/edito/info/81395/deni
s-wathier-on-ne-peut-pas-se-contenter-de-faireuniquement-du-voyage-generaliste/
Les Echos, 2009, La consolidation du secteur est
en cours
Available at: http://www.lesechos.fr/entreprisessecteurs/service distribution/dossier/300377344la-consolidation-du-secteur-est-en-cours.htm
Daily Bourse.fr, 2008, AVEC JET TOURS,
THOMAS COOK "ATTEINT LA TAILLE
CRITIQUE" EN FRANCE (WATHIER)
Available at: http://www.daily-bourse.fr/avec-jet-tours-thomas-cook-atteint-la-taille-criti-Feed-AFP080609113548.x4aesox2.php