Saga Holidays Essay example
Saga Holidays was a family-run business which started from year 1948. This business had steadily grown until nowadays. As a result, it has recognised reputation as a travel organiser that concentrated serving the older target market only.
However, the chairman of the Saga Holidays had decided to retire in October 2004. Thus, he had sold the organisation to the Charterhouse with an incredible amount of £1.35bn (BBC News, Oct 2004).
Although no one can prove that it is worth such a high price, this article endeavour to analyse its strategic market environment.
External Environment Analysis
PEST stands for Political, Economic, Social …show more content…
SWOT analysis stand for Strengths, Weakness, Opportunities and Threats. In general, According to Hooley, G. et al (2004, pp.43), SWOT analysis is a dual way approach. This is because Opportunities and Threats analyses are external environment analysis which are much more link to PEST analysis. On the other hand, Strengths and Weakness analyses are internal environment analysis.
Table 2 show the summary of the SWOT analysis for Saga Holidays.
Table 2: SWOT Analysis for Saga Holidays
Strengths (Internal Environment)
Saga Holidays had a strong corporate image that is providing high quality services to the customers. As a result, they had gained the trust and loyalty from the customers. Due to the changing environment, they are more flexible than the other big companies.
Besides, their system process was highly successful because of they have thorough understand on its markets. It also can be defined as first mover advantage; they have more advantages than their competitors. This is because of the new competitors had to invest in the new market it may costly. They are the main travel business that concentrate on people 50’s over and provide with special medical treatment and holidays insurance. Therefore, Saga Holidays can be categorised as the specialist travel organisation. Although the mainstream of the Saga Holidays was holidays organisers, they had diverse their business into different market. Which were Saga