Swot Analysis, Pestle Analysis

SWOT Analysis

Strength:

• The Company has long history, which will help Company build their brand firmly and easily.

• Thomas Cook Group is one of the world’s leading leisure travel groups, with sales of £9.8 billion and 23.6 million customers (Thomas Cook Group 2011).

• The Company operates under six geographic segments in 22 countries (Thomas Cook Group 2011).

• Obviously the Company already reached the economic scale

• The Company has reached the Greiner’s (1998) Phase 6 – Growth through Alliances.

• The Company own accommodation and flight consolidator (Thomas Cook Group 2011).

Weakness

• The Company has faced poor performance in parts of their business. (Thomas Cook Group 2011)

• Disruption in the MENA region will bring challenges to the Company. (Thomas Cook Group 2011)

• The profit margin is dropping by 25 percent (Thomas Cook Group 2011)

Opportunity

• With the higher income and purchasing power, Chinese tourists become more active than before.

• UK unemployment fell 65,000 in the three months to the end of May. (The Source 2012)

• Tourism is second only to oil as the world’s leading export commodity, accounting for global earnings of more than $300 billion, or nearly 25 percent of total world GNP

Threat

• Uncertain economic environment across Europe will lead to adversely impact.

• Customers’ preferences switch from package tour to independent travel mode which will carry lower margins.

• More customers tend to directly purchase products from the services provider, when plenty of information is available on the internet.

• Political instability will cause the business slow down and carry higher risk.

• Input costs (fuel) are higher (Thomas Cook Group 2011).

• Crang, Obrador-Pons & Travlou (2009) suggest that mass tourist’s sensibilities are related to send, sea, sun. Therefore weather is very important to tourism industry. The weather issues that affect globally may cause recession of tourism industry....