Nouvelle Frontiers

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  • Topic: Travel agency, Travel website, Tour operator
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  • Published : February 22, 2013
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INTERNATIONAL STRATEGIC MANAGEMENT
CASE ANALYSIS
Nouvelles Frontieres

Presented by: Group-3

HasijaSwati Bansal Abhishek
El Hanafi Hasna Aggarwal Varun
Khamlichi ZaynabLakhaney Vernit

Introduction

Nouvelles Frontieres, with over 40 years of experience, is the first French tour operator. Nouvelle Frontieres was created in 1967 by Jacques Maillot, then a college student, and four of his close friends. It was initially created as a student association that organized low price holidays and has since then, it has grown very rapidly to become the largest tour operator in France.

Nouvelle Frontiers has remained both a tour operator and a travel agent, since its inception. With the goal of being the cheapest tour operator in all travel categories, this company has a vastly diversified product range from budget holidays to luxury tours & trips. Nouvelle is presently the market leader in France with reported net profit of 23 million euros (of year 1999) & has considerable presence in countries like Spain, Italy & UK.

The company has undergone aggressive vertical integration into both airline and hotels and the issue of concern for the CEO,in the case, is how investors view this integration as the company is about to go public. The CEO is worried as to how the company should go public. Another issue that bothers Jacques Maillot is how the rapidly growing use of Internet in Europe will affect the travel industry as a whole.

PESTEL Analysis

Political
* Airline industry was deregulated in the US in early eighties and in Europe in early nineties. The deregulation still applied to flights within European Union

Economic
* The stabdard of living in Europe has increased and this has led to an increase in the development of the tourism industry & demand for air travel. This has benefitted Nouvelle Frontieres greatly.

Social

* Consumers preference varied from country to country. People of different nationalities & culture had different favourite holiday destinations to suit their tastes.

Technological
* Introduction & then rapidly growing use of internet offered a very good platform for Nouvelle Frontieres to offer its services through another channel. It helped Nouvelle increase its customer base.

Environmental
* Weather and climatic conditions of some destinations are favourable for tourism and some are not. The climatic conditions also the influence the choice of destination made by customers and hence effect travel rates & Nouvelle’s business.

Legal
* Due to increase in length of legal holidays( a minimum of four to five weeks in most countries), tourism & associated air travel greatly benefitted.

SWOT Analysis
Threats| Opportunities|
Airlines Low Cost companiesTravelling packages that comprise: flight ticket, hotel and other services.Travel Websites as govoyages.comThey propose to the customer to form his own travel by assembling a ticket flight and a hotel.The increase in the use of internetTerrorist threats| Advanced New technologiesNew technologies like smart phones and tablets can positively improve the use of the e-commerce. Government Support| Weaknesses| Strengths|

Unsteady demand The demand is dependent on major variables (meteorological conditions, geo-political environment etc) * Some destinations are attractive in some seasons while it isn’t on other seasons. | Exclusive & specialized distribution system. * Exclusivity of the products * Better understanding to consumer preferences.Offering the Lowest price in the market and still making money * Vertical Integration: Backward integration. Corsair & Paladien resorts * Competitive price setting system * NF is lowest price competitor in the market place.|

Strengths:
Exclusive and specialized distribution system.
One of the important strength of NF is having its own exclusive...
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