Thomas Cook Tour Operation UK Ltd :: Business and Management Studies

doubting doubting Thomas Cook Tour mathematical operation UK LtdIntroductionThomas Cook Tour Operation UK Ltd is the third largest break groupoperating in the UK snuff it constancy, owning its own incitedistribution bring, tour operation and airline. The troupebelieves that they have earned their slip through consumerrecognition for their quality and expertise in providing packageholidays.The imbalance of the market caused by high sensitivity to economicchange and the intangible asset and perishable nature of the products sold,forces companies competing within the travel industry to constantly sample new and imaginative ways to create demand and maintain orstrengthen their position. A combination of economic downturn, a omitof consumer confidence, pictorial disasters and the effects of terrorismhave had a major impact on the performance of Thomas Cook Touroperations. In this report I will analyze the marketing strategiesused by the gild and address the effectiveness in achieving theirobjectives.CompanyThe tragic events of September 11th 2001 had a devastating affect onindustries throughout the world. The travel and tourism industryhowever was hit the hardest. Increasing fear amongst consumers afraidto fly and a downturn in the world economy caused a drastic chasten inthe demand for both business and leisure travel make passengernumbers to plummet. Thomas Cook tour Operations, like its competitorsexperienced high profit losses as a resultant role of falling passengernumbers, added security be, falls in their share prices and change magnitude insurance premiums in which occurred I the aftermath.Prior to September 11th the travel industry experienced a dynamicgrowth between 1995 to 2001. During 2001 20.6 one thousand million package holidayswere sold to the British Consumer, 1 growth of 2.6%. However the declination of the industrys success came immediately after theterrorism attacks. Thomas Cook Tour Operations were as a result strainedto deve lop a new strategy in order to observe their rapidly fallingprofits.In order to develop their new strategy, the company carried out a SWOTanalysis. This is a technique that involves identifying a companysstrengths and weaknesses in the business, the opportunities presentedby the trading environment and any threats argue the company. Thebelow information is adapted from the Thomas Cook Tour OperationsChief executive Update.StrengthsExisting percentage market shareThomas Cook reputationExisting Thomas Cook image and soft touch recognitionHigh level of awareness within target marketKnowledge and experience of market trendsLarge number of distribution channelsGood product varietyWeaknessesHoliday Essential brand not well established and relatively low demandfor the product.Confusion and lack of identification of other Thomas Cook brands e.g.JMC and holiday essentials.High intensity costsHigh capital expenditure, i.e. marketing expenses, data processingcosts and human resources, e.g. staff turnoverOver capacityExcessive situated assets i.