Thursday, September 12, 2019
TUI Group Environmental Essay Example | Topics and Well Written Essays - 1000 words
TUI Group Environmental - Essay Example Established in 1997 the company has expanded its operations in tourism to emerge as the market leader globally (TUI AG, 2015). The company has invested in three business portfolio; TUI Hotels and Resorts, TUI travel and the cruise ship venture. TUI has strong portfolio comprising of over 1,800 travel agencies, 300 Hotels, 13 cruise liners, 130 aircrafts, six airlines, etc. The company recorded turnover of Ã¢â ¬18.7 billion in 2013/1014 financial year (TUI AG, 2015). TUI operates in more than 180 regions with over 30 million clients. The companyÃ¢â¬â¢s shares trade on London Stock Exchange (FTSE) and in Frankfurt Stock Market. TUI experience strong competition from Thomas Cook, First Choice Holidays, Rewe Touristik and My Travel Group. TUIÃ¢â¬â¢s growth strategy is to increase the number of hotels by opening more 60 hotels and purchase four new ships.PorterÃ¢â¬â¢s five forces analysis promotes the understanding of sources of sources of external challenges facing the industry.T he threat of new entrants: The tourism industry requires high capital and is controlled by a few market leaders. However, the possibility of entrants of low-cost airlines offers price threat to TUI. Developing of efficient rails and customers preferences for personal vehicles can have adverse effects on the company. Substitutes: The social media, TV and other social activities pose some threats of substitutes though not a perfect replacement of tourism. Also, tourism is highly undifferentiated thus there is low threat of substitute.