Thomas Cook Managing Marketing

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5.0. BCG MATRIX[pic 13][pic 14]

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6.0 PERPETUAL MAPPING

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[pic 18]Thomas Cook

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BARGAINING POWER OF BUYERS

7.1 In this day and age, customers have a choice of products from different service providers and the internet enables to compare prices and compare product offerings before coming to a decision. Thomas Cook should add more value added services to entice current and prospective customers in order to delight them.

HIGH

BARGAINING POWER OF SUPPLIERS

7.2Suppliers for travel companies include airlines, hotels, Event organizers, transportation service providers etc.

7.3Thomas Cook is the leading brand in the travel industry and has high power over suppliers when negotiating prices.

7.4Suppliers can supply directly (forward integration).

MEDIUM

THREAT OF NEW ENTRANTS

7.5The internet has enabled many new travel companies to enter the market without the need to invest heavily in infrastructure and this is also the preferred option for customers when seeking to purchase travel. Online growth is predicted to be faster than offline growth.

7.6 But reliability is an important factor and consumers wish to engage with a brand which is reliable and well known so the risk associated with the purchase is minimized.

MEDIUM

THREAT OF SUBITUTES

7.7In the travel industry, the number of substitutes is very high.

7.8 Travel seekers can go on a self-driving tour without the need of a specialized agent .Nowadays GPS Systems and travel guides are freely available also suppliers can sell directly to customers(hotels ,airlines etc).For business Travellers video conferencing has reduced the requirement for business related travel.

HIGH

COMPETITOR RIVALRY

7.9 The market is highly dynamic with a number of competitors with similar product propositions.

7.10 Thomas Cook plans to embrace the online explosion to stay competitive to customer’s needs and preferences.

HIGH

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FACTOR

IMPACT

IMPLICATION

8.1 POLITICAL AND LEGAL

8.1.1Political unrest in Middle East and North Africa affects Thomas Cook extensive operations in Egypt and Tunisia.

Cancellations in bookings.

Lead to reduced profitability (Thomas Cook incurred an operating loss of 317 million pounds in 2012).

8.2 ECONOMICAL

8.2.1Rise in fuel costs.

8.2.1Currency fluctuations when operating internationally.

8.2.3 Economic Recession.

Increases operating expenditure thus increases prices for customers

International market costs and profitability fluctuates affecting distribution strategy.

The travel industry is most affected as a result of recession. The booking cycle for holidays’ has shortened.

Leading to an increase in domestic short travel.

Prices need to absorb exchange rate changes and reflect a suitable pricing strategy.

Low budget packages and more last minute deals can be introduced.

8.3 SOCIAL AND CULURAL

8.3.1 Perceived risk is a factor for customers when purchasing travel.

8.3.2Consumers have become more practiced at travel

Thomas Cook has the best overall reputation in the industry.

Researching and booking holidays without the need for specialized assistance.

Thomas Cook should sell based on this proposition to increase sales.

Thomas Cook has enabled customization options to create product offerings tailored to customer’s individual requirements via the web.

8.4 TECHNOGICAL

8.4.1Technological innovation has led to increased social networking and proliferation of the internet.

8.4.2 Mobile and other technology development.

There is a shift from offline line sales to online sales. As most consumers seek convenience.

Word of mouth recommendations are important and consumers can reassure their travel decision through social networking and world wide web.

Thomas Cook is in the process of strengthening its online business as it is highly penetrated to attract more sales.

It’s Store of the future enables customers to view video content to complete a booking via an instore tab

8.5 ENVIORNMENTAL

8.5.1An increase