How Can Gebeco Fit Into the Strategic Purpose of Tui Travel Plc

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Case 3 TUI TRAVEL PLC

Gebeco

Britta Glasemann 76523
Vera Effmert 79652

Preface

A suitable strategic purpose is essential to the successfulness of any enterprise. A sufficient product or service, good performed operations as well as skilled and well trained personnel are efforts in vain, if there is no thorough concept behind it. Thus, the success of any business is closely linked to a thorough strategy.

Strategia consultancy develops business concepts with suitable strategic paths for organizations in need of professional assistance. By thoroughly analyzing and evaluating the current strategic position of our clients, we identify faults and where necessary develop a whole new strategic purpose. The consultants Vera Effmert and Britta Glasemann have worked alongside with the management team of Gebeco llc. to develop a new strategy for the tour operator with the ultimate goal of enhancing their overall profitability.

Leeuwarden, 14.01.2011

Table of content

Preface2
Introduction4
Problem statement and research questions4
Company Profiles5
Company Profile TUI Travel PLC5
Company Profile Gebeco6
Internal Analysis7
Marketing strategy7
Strategic capabilities9
External Analysis11
Power interest matrix11
Five Forces Analysis13
Role and function of corporate parent15
SWOT17
Alternative Courses of Action18
Diversification19
Product/brand development19
Market development20
Strategy Evaluation21
Implementation23
Conclusion25

Introduction

The purpose of the following consultancy report is to assess how the strategic business unit Gebeco contributes to the overall value of the corporate parent TUI Travel PLC. At first, a profile of both companies will be given. After this description the SBU will be analyzed with the aid of several strategic business models. Based on this analysis the fit between the role and function of TUI Travel PLC and the overall strategy of Gebeco is identified. Further on, alternative strategies will be found and evaluated. The most suitable course of action will be chosen and an implementation plan for that will be drawn up.

Problem statement and research questions

The strategic goal of TUI Travel PLC is “to create superior shareholder value by being the worlds leading leisure travel group.” Since Gebeco belongs to one of TUI’s strategic business units, one may raise the question whether Gebeco contributes to this goal and if yes how they manage to do so. The consultancy company Strategia will launch means and measures to encourage a profitable contribution of Gebeco as a SBU of TUI Travel PLC.

The central issue of the enterprise thus will be outlined by the following problem statement and eventually be answered in the scope of this paper:

“How can Gebeco fit into the strategic purpose of TUI travel Plc?”

Before Strategia develops several courses of action for Gebeco to contribute to the profitability and stability of TUI Travel PLC, basic research will be conducted and analysis carried out. The following research questions will shed light on the current strategy of Gebeco, identify the profit and growth potential of the business and look at the competitive environment of the SBU.

• The first question “What is the current strategy of Gebeco?” will be answered by applying the marketing mix as well as the strategic capabilities and will thus give a first overview of the SBU’s overall strategy. This will be analyzed in terms of growth potential and profitability. • “How does that strategy fit to the parent organization of Gebeco in terms of profitability?” is significant to identify in order to see if the strategic goal of TUI Travel PLC and Gebeco are in symbiosis. This will also determine the direction of the strategies developed at the end of the analysis. The parenting fit matrix will give further details about this issue. • “How does Gebeco’s...
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