How Assignment Help Supports Tourism and Globalization Studies
Globalization refers to the interdependence and interconnectedness of economies and culture with each other with an aim to enhance economic activities and trade expansion between different nations (Khan et al, 2020). On the other hand, Global tourism may be stated as people’s activity related to staying and traveling in multiple countries across the world for business, recreation, leisure or other personal purposes. Global strategy is the term used for the business expansion within the global market, includes the international and standardization strategies. Tourism strategy refers to the tactical plan formulated with an intention to promote and develop the tourism destination to reshape the tourism industry’s future (Bazargani and Kiliç, 2021). In addition to that, strategy of global tourism termed as the strategic framework used by the tourism sector to enhance its activities and overall profitability within the global world, in order to generalize long term objectives.
In addition to that, the strategy of global tourism is termed as the strategic framework used by the tourism sector to enhance its activities and overall profitability within the global world in order to generalize long-term objectives. This topic is often explored in Assignment Help resources, which assist students in understanding global business, tourism strategies, and international market dynamics.
The TUI group is considered as one of the leading group within the sector of tourism in the world. It’s headquarter is situated in Germany (TUI Group, 2024). It offers the services and activities related to tourism and hospitality in more than 140 nations worldwide and have estimated 19 million customers across the world. It operates more than 400 hotels and premium resorts in collaboration with luxury brands such as Robinson, TUI Blue and RIU and has 17 cruise ships. Furthermore, it aligns with around 1200 travel and tourism agencies with an aim to expand its business with cruises and hotel through joint ventures.
This case study report aims at improving the strategic management of the TUI group and proposes practical recommendations related to the future actions of the organisation. The structure of this case study report outlines five chapters along with the recommendations and conclusion. First chapter includes the strategic management within the TUI group. Second chapter involves the demonstration of organisational strategies, decision making and strategic options available to the TUI group. Third chapter emphasises on the business environment of the TUI group. Fourth chapter is based on the sustainable management of tourism and the last chapter includes the strategic options, challenges and competitor analysis along with relevant examples.
Strategy has been defined as a setting of priorities and goals with the determination of action to accomplish the organizational goals and to allocate resources to achieve the effective outcomes (Lasserre and Monteiro, 2023). It is referred as a foundation of the organisation as it involves with the identification of weakness and success and a strategic formulation of mission and clear vision for the future. In addition, global strategy refers to the adoption of comprehensive plan to attempt towards the standardization of its services and products across the world to generate high revenue and enhances their customer base. On the other hand, strategic management is the concept of setting procedures and objectives of the organisation with an aim to improve its competiveness and efficiency (Mintzberg, 1987).
TUI group offers the best holiday experiences and business divisions of airlines and market at affordable pricing (TUI Group, 2024). Its strategy is embedded into the ecosystem among which customer plays a central role. The strategy of TUI Group focuses on profitable growth and expansion of customer base to enhance its competitiveness in the Global tourism industry. In the past years, the TUI group implements the pricing strategy to facilitate best services of tourism and hospitality to its customers. However, the rapid paced world of globalization demands for the modification in the products and strategy to attract large customer base in the competitive tourism industry (Moutinho and Vargas-Sanchez, 2018). As a result, it adopted multiple strategies apart from pricing strategy, includes the effective services strategy to provide high satisfaction by delivering best services to the tourist to retain them to ensure long term profit and organizational growth.
Additionally, the market expansion strategy of TUI group focuses on the product growth encourages the organisation to adopt the innovative and creative method of offering effective customer services to its guests. Apart from that, it offers wide range of other services related to market, cruise and airlines to attract diverse segment of customers from global world (Tabari and Chen, 2022). The product strategy of TUI group was based on the offering multiple services of accommodation, tours and ancillaries, flight and cruise services, car rental and by offering high flexibility to customers by adopting the effective strategies of marketing to enhance the chances of success and growth. Besides that, it adopted the effective marketing strategy includes the social media marketing, influencer marketing and website promotions to strengthen its brand image in the globalized tourism world (Okumus et al, 2010). It focuses on the concept of customer-centric approach of marketing to ensure its long term business growth and success.
Apart from that, the strategic management of the TUI group aims towards the effective utilization of human and physical resources (Gooderham et al, 2019). It focuses on the execution of strategic plans and policies to increase the excellence within the organisation. Strategic management act as a roadmap, acknowledges the TUI group to strengthen its position with the adoption of product and market expansion strategy to establish its excellence in the global tourism market. Besides that, the strategic management of the TUI Group guides about the fluctuations in the profitability of the organisation by suggesting appropriate strategies to ensure profitable and sustainable growth in the future (Charkina et al, 2022). Moreover, it guides the organisation about the fulfilment of its CSR responsibility towards the environment, social and economic factors as its key principle for the strategic development in the global world.
Strategic management of the TUI group formulates and implements the risks management strategies to mitigate the adverse impact of the negative business situations (Barykin et al, 2021). For example: during the global pandemic of Covid-19, the strategic management of the TUI group adopted the domain and transformation initiative to enhance its pace and relevance. With the effective alignment with through the program of global realignment, the TUI group targets to recover its financial losses incurred due to the arrival of global pandemic with the major allocation of its proportion to the airlines and market business.
As per the context of globalized business world, an organisational strategy is quoted as a long term plan and aims to allocate different resources to ensure the organizational success and growth (Pencarelli, 2020). It serves the assistance to the organization to achieve the goals and objectives. The organizational strategies are comprehensive in nature, aimed to facilitate process of well-informed decision making about the allocation of resources, competitive positioning and directs the business in order to achieve the sustainable advantage in the global market. On the hand, corporate strategy termed as the tactical plan which outlines the objectives and goals of the organisation. The primary purpose of the corporate strategy is to improve the growth, sales and efficiency (Erol et al, 2022). Conversely, strategic process refers to the four phases, denoted as planning and scanning of business environment, formulation of strategy, implementation of strategy and evaluation and effective controlling.
Strategic option are also termed as a growth option, encompasses with the organization decision towards the successful alignment of resources with the actions and capabilities to ensure the increased competitive and sustainable advantage (Scott, 2021). TUI adopted the development of new product, diversification and market penetration as its strategic option to enhance its growth and competitiveness. Additionally, the process of strategic decision making includes the evaluation of long term objectives by analysing the current patterns and trends of the market (Streimikiene et al, 2021). The market analysis are effectively aligns with the objectives and vision of the organization to facilitate development and organizational success. The TUI group has implemented the attractive pricing strategy with an aim to attract diverse range of customers. Along with that, it is important for the organisation to adopt other strategies related to the diversification of services and product to increase the satisfaction and brand image within the competitive tourism industry (Post et al, 2022).
The corporate strategy of the TUI group includes the strategy of sustainability, focuses on ensuring the social, economic and environmental sustainability to increase the bard image and value of the organisation. With the adoption of sustainable strategy, it increases the chances of long-term economic and business success within the sector of tourism across world (Bertella, 2020). The strategic process of the TUI group emphasises on the accomplishment of its objectives, related to exploration of diverse horizons by experiencing and discovering cultures, market and diversity of the foreign countries. To accomplish this, it adopted the product and market expansion strategy to provide the best and memorable services to the diverse cultured guests by fulfilling their expectations and needs. Besides that, with the implementation of Ansoff Matrix, the TUI group can choose the best strategic option within the context of organisational success and growth in the global tourism sector (Distanont, 2020). This Matrix on the strategic option guides the organization to formulate well informed and strategic decisions to increase its market and customer reach with modification in the existing services and products.
With the help of Ansoff Matrix, TUI group adopted the strategic option of market penetration across different nations and development of services and product by offering multiple services to the customers (Chatterjee et al, 2021). Strategic decision making is significant for the TUI Group as it offers the competitive advantage by ensuring necessary managerial skills and knowledge required for the improvement in the performance of the organization. It is important as it comprehends the strategic decisions taken by the organisation and their potential impact in its performance.
In the competitive business world, the term business environment refers to the total of internal and external factors which plays a vital role in influencing the performance of organization (Ranjan and Foropon, 2021). It comprises of internal and external factors, has a crucial impact on the success and competitiveness. An internal factor of the business environment includes factors within the organization such as culture, employees, management and its structure. On the contrary, external factor of the business environment comprises of the external forces, includes competition, current patterns and trends of the market and policies and regulations (Madanaguli et al, 2022). TUI Group’s internal environment comprises of its human resource, policies and plans, value system, management, organizational structure and culture. Whereas, the external environment of TUI consist of multiple factors related to politics, social, technological, environmental, economic and legal factors.
The internal analysis of the TUI’s business environment has been conducted with the implementation of SWOT analysis, focuses on the depth analysis of the internal business environment with the identification of its strengths, threats, weaknesses and opportunities (Koseoglu et al, 2021).
Strengths:
There are multiple strengths emerges within the analysis of internal environment with the implementation of SWOT analysis. TUI group primary strength is its well-recognized brand image across world as it operates its business across 140 nations and works with the collaboration of estimated 1200 travel and tourism agencies, emerges as its strength. In addition, it is recognized for its effective management of the tourism and travel services with skilled staff, leads to deliver standard services to its customers, emerges as its strength (Khan et al, 2020).
Weakness:
There are few weaknesses of the TUI group, revealed in the SWOT analysis, such as heavy technical reliance, increased financing risk and increased cost of operations. As per the requirement of the current era of digitalization, TUI group has adopted advanced technologies related to machine learning and artificial intelligence to operate its business operations in smooth and streamlined manner. This results in increased resilience on technology, emerges as potential weakness (Kyrylov et al, 2020). Apart from that, to maintain the effectiveness of its services and operations, it adopted the advanced technologies, results in high cost of installation and maintenance.
Opportunities:
TUI group adopted multiple strategies related to the market expansion, marketing, diversification of services and product and effective pricing, results in increased opportunity related to the attracting large number of customers. Furthermore, the market expansion strategy also enhances the opportunity for the foreign direct investment by the investors, results in increased market value and financial stability of the organization (Chung et al, 2020).
Threat:
The dynamic business environment consists of various threats related to climate change, non-compliance with the foreign business policies and significant decline in the economies of scale. This results in increases threat for the TUI group within the internal business factors (Khan et al, 2020).
To understand the external factors of the global business environment has a crucial impact on the performance of the business, PESTEL analysis has been conducted with an aim to analysis the external business factors, which are as follows:
Political Factor:
There are multiple political factors related to the changes in governmental rules and policies, terrorism and global pandemic, security policies and taxation rates, affects the performance of the TUI group in adverse or favourable manner (Bazargani and Kiliç, 2021).
Economic Factor:
External business environment comprises of economic factor includes the foreign exchange rate, change in the value of currency and market competition, has a significant impact on the TUI group’s efficiency and performance (Lasserre and Monteiro, 2023). Furthermore, the economic growth and development fosters a significant increase in revenue and profitability of the organization.
Social Factor:
Multiple social factors include cultural and demographic factors, choices and preferences of the guest have a crucial impact on the tourism industry. TUI group conducts appropriate market research to understand the cultural and other preferences and fulfill the needs of the guests to ensure long term sustainability and growth in the global tourism industry.
Technological factor:
In the rapid paced era of digitalization, adoption of advanced technology is essential for the businesses to operate in the global market in effective and efficient manner (Mintzberg, 1987). TUI invests in the R&D department to analysis the technological advancement and adopts them to streamline business operations and to offer effective services to the tourists.
Environmental factor:
The industry of tourism has an adverse environmental impact as a reason of which, the TUI group can adopt the environmental policies and regulations to maintain the regulatory standards of environmental law. This result in increased brand image and enhances its concern towards the protection and conservation of environment, leads to increase the number of customers and competitiveness in the global market (Moutinho and Vargas-Sanchez, 2018).
Legal factor:
The legal regulations, rules and policies of the foreign countries have a vital impact on the performance of the TUI. Certain regulatory obligations related to the legal compliance have to meet by the organization to ensure the smooth and streamlined operations (Tabari and Chen, 2022).
Sustainable strategy, also termed as a corporate responsibility is termed as a strategic action, focuses on the enhancing performance and to drive investment, along with increased engagement of external and internal stakeholders (Okumus et al, 2010). In addition, the concept of sustainable strategic development focuses on the strategic integration of the environmental, social and economic objectives with the business objective to improve the conservation and preservation of the resources, community and nature. This includes the actions, initiatives and programs aimed to promote the wellbeing of the society and planet (Gooderham et al, 2019). There are multiple key drivers of the sustainable management of the TUI includes innovated business model based on the sustainable strategy, competitive and economic advantage, saving of resources, compliance with environmental policies and preservation of natural environment.
The current business model of TUI is based on the strategy of sustainability, aims to lead the global tourism world by empowering community and economic development for the long run development and profitability of the business (Charkina et al, 2022). Its sustainable agenda is underpinned with the core factors based on the empowerment of society to foster development and transformational progress of the tourism industry. In addition, the TUI group focuses on the reduction of environmental footprints and to maintain the environmental standards within the tourism industry (Barykin et al, 2021). Another driver of the sustainable management is termed as competitive and economic advantage, for which the TUI group fulfills its corporate social responsibility (CSR) to enhance its competitiveness in the global tourism world. In addition, it strengthens the brand image, leads to attract large segment of customers. This enhances the economic advantage of the business by driving high revenue turnover, emerges as a sustainability driver.
Additionally, compliance with the environmental policies and maintaining of regulatory environmental standards emerges as a key driver of the sustainable management of the TUI group (Pencarelli, 2020). These results in the completion of CSR objective related to the conservation and preservation of natural environment and resources and guides about the optimum utilization of resources. The ESG model based on sustainability empowers the organization to adopt the sustainable business practices and aims to minimize the issues related to ethics and sustainability in order to improve its overall performance. It guides the tourism organization about active engagement in the fulfillment of its environmental, governance and social responsibility to ensure increased business opportunities in the global market (Erol et al, 2022). The sustainable strategy of TUI group aims to empower the society and people to promote economic growth and development. Furthermore, it aims to ensure the strategic transformation and progress of the tourism sector to foster development and growth.
Besides that, the TUI group can promote the policies of sustainable tourism to achieve high sustainability within business operations (Scott, 2021). With the adoption of polices related to the consumption of renewable energy sources, implementation of measures related to conservation of water and organization of eco-friendly activities on tourist destinations can attract large segment of eco-conscious guests. For example: Hyatt Corporation engages with the adoption of sustainable practices to protect and conserve environment with the installation of solar panels, electronic vehicles and increases use of paper as a substitute of plastic to conserve environment (Hyatt Corporation, 2024). Unlike this, the TUI group can also adopt these sustainable policies to minimize its adverse impact on environment. In addition to this, encouraging local communities, heritage and cultural tourism is another way by which the TUI group can achieve economic sustainability by offering local cultures, values and artistic heritage to the guest by involving the local communities.
This leads to enhance the economic growth and development of the nation, therefore helps the organization to fulfill its economic responsibility. Furthermore, by offering the sustainable facility of accommodation, TUI group can strengthen its brand image and CSR efforts. For example: Marriott International group within travel and tourism sector offers the sustainable food menu and accommodation services to its guests with an aim to reduce its overall waste and carbon footprints (Marriott International, 2024). It has been suggested that TUI group can also adopts the practices related to the reduction of carbon footprints with the promotion of biodiversity and ecology to achieve high sustainability. Apart from that, the promotion and adoption of green sustainable initiative with an aim to minimize exploitative tourism can help the organization to achieve sustainability (Streimikiene et al, 2021). This can assist the TUI group to take full responsibility for its actions and further encourages the organization to address the demands and expectations of the visitors with the adoption of green sustainable initiatives.
Strategic opportunities in the tourism industry refer to the chances of development and growth with the adoption of dynamic business strategies with an aim to increase opportunities of expansion and growth (Post et al, 2022). It includes the increased chances of foreign investment, opportunities related to the expansion of market, promotion of heritage and cultural tourism and increase eco-tourism opportunities. There are multiple strategic opportunities for the TUI group of tourism such as increase in collaboration by coping with the current patterns and trends of the global tourism market. With the experiential travel and eco-tourism practices enhances the opportunity of collaboration within the global market, results in increased foreign investment (Bertella, 2020). Furthermore, there are strategic tourism opportunities related to capitalize local heritage, festivals and events to the TUI group, results in increased opportunity of foreign market penetration. Apart from that, TUI explores about incentives provided by the foreign government, emerges as opportunity in managing financial factors in effective manner along with the understanding of regulatory compliance (Distanont, 2020).
There are multiple strategic challenges faced by the TUI group related to the destination disruption, lack of understanding of consumer preferences and competition and non-compliance with legal regulations and policies (Chatterjee et al, 2021). The rapid paced globalization arises challenge for the TUI group related to the destination disruption, has an adverse impact on the operational efficiency and cost of the business. Additionally, lack of understanding of consumer preference and foreign market emerges as a strategic challenge faced by the TUI group during globalization. Due to lack of knowledge about foreign trade policies and regulations, TUI group faced strategic challenge related to the non-compliance with the policies and regulations. On the contrary, the term competitive advantage referred to the factors that enable the organisation to produce services and products in more effective manner as compare to its rival competitor (Ranjan and Foropon, 2021). These factors include the cost leadership, basis of differentiation, capabilities and strategies considered by the organisation to take advantage from its competitors.
Competitive analysis termed as process for the identification of industrial competitors and researches about the current marketing strategies adopted by different competitors in the global market (Madanaguli et al, 2022). It is important for the TUI Group as it provides a detailed comparison with the identification of weakens and strengths of organisation and its competitor. Furthermore, it is significant as it helps the organisation to enhance its customer base, strengthens its brand position and fosters development and organizational growth.
With the implementation of Porter Five Force framework, TUI understands the industrial competition within the context of different forces that influences its performance. The following are the five forces of Porter’s framework, provides in-depth understanding of current market trends within global tourism sector.
New Entrants Threat (Medium)
First force of Porter’s framework is new entrant threat, which is medium for the TUI group as launching business in the industry of tourism requires innovative ideas and huge investment to sustain in the highly competitive industry of tourism (Koseoglu et al, 2021).
Buyer’s bargaining power (High)
Second force comprises of buyer’s bargaining power, results as high as the industry fluctuates with the changing needs of the buyers. Increased competition results in offering diverse range of services and products to buyer, this enhances its bargain power.
Supplier’s Bargaining power (Low)
Third force of Porter’s framework is related to supplier’s bargaining power, which is low as the TUI group acts as its personal own supplier (Chung et al, 2020).
Substitutes Threat (High)
Porter’s fourth force is related to the substitute threat, emerges as high as the tourists are looking forward for the best and efficient services, resulting in high chances of substitute within tourism industry.
Competitive Rivalry (Medium)
Last fifth force comprises of competitive rivalry, results in medium as the tourism market is distributed on the basis of highly fragmented, regional operators, geographically marketed and privately owned (Khan et al, 2020). However, there is limited level of differentiation in services, TUI able to sustain its position and competitiveness by delivering effective services and products. Besides that, there is a competitive analysis of the TUI with jet2holidays.com, emerges as its key competitor within the tourism industry.
| Factors | TUI Group | jet2holidays.com |
|---|---|---|
| Services Offered | Offers services and products related to tourism and hospitality, Airways and cruise services and rental cars. | Offers services of travel insurance, plans package holiday, accommodation, meals and car hiring facilities. |
| Adopted Strategy | Adopted strategy of pricing, product and market expansion to expand its business reach in global tourism industry. | Adopted the customer centric approach to expand and retail base of global customers across world. |
| Unique selling Proposition | Its unique business model based in sustainability and offering concept of unique holidays (Lasserre and Monteiro, 2023) | Offered best services of tourism and holiday provider based on British packages |
| Current number of customers | Serves customers more than 27 million every year | Approx. 133 million customers worldwide (Jet2Plc, 2024) |
Conclusion
6 Years | PhD
From the above, it has been concluded that the strategic management played a vital role in maintaining performance and efficiency of the TUI. It was revealed that it adopted the strategy of pricing along with the product and market expansion to strengthen its competitiveness and position in the global tourism industry. It has adopted the product development, diversification and foreign market penetration as its strategic option to enhance its growth and competitiveness. Strategic decision related to the adoption of sustainability strategy and ESG principles aims to foster the brand image and focuses on the wellbeing of nation, environment and communities. There were multiple strategic opportunities available to the TUI, identified as increase in collaboration, experiential travel and eco-tourism practice and capitalize local heritage, festivals and events to the TUI group, results in increased opportunity of foreign market penetration. However, TUI faced multiple challenges related to lack of understanding of consumer preferences and competition, destination disruption, and non-compliance with legal regulations and policies.
To overcome these strategic challenges, it has been recommended that it could invest more in the research and development factor to analysis the current competition and information about the global market trends within the tourism industry. Additionally, it has been suggested that it can conduct appropriate research of foreign market to analyse its demographic factors, favourable factors of the business and availability of resources to mitigate the issue of demographic disruption (Tabari and Chen, 2022). Moreover, it can adopt the effective strategy of digitalization to gain information knowledge about the current trends and patterns of the market and consumers, helps the TUI in future growth. Effective digitalization strategy will assist the organization to streamline its business operations and helps in reaching wide range of tourists, results in strategic future growth and attracting diverse range of development opportunities (Pencarelli, 2020). Thus, it has been concluded that the implementation of digitalization strategy will emphasis on the effective performance of the TUI with the mitigation of key strategic issues and attracts large number of future growth opportunities to foster development and success was concluded.
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