The TUI group also have a very strong cash flow, giving them much necessary resources to sustain growth and invest into new areas. When heading into the future, TUI must utilize their financial and personnel resources in order to further enhance its impact in the travel and tourism industry, or potentially diversify into new …show more content…
TUI group would likely be able to find new suppliers easier than a supplier could find a new buyer (TUI Group, 2014).
3.5 Competitive Rivalry (High)
The rivalry within the airline industry is intense. All choices are on the internet, giving customers low switching costs. Although TUI owns many different agencies, hotels and airlines, they compete with some of the biggest companies across the world, such as Virgin (Paptheodorou, 2006). Furthermore, TUI has high fixed costs due to significant maintain fees, human resources spending and etc.
3. VRIO Analysis
TUI Group has 77000 colleagues in 130 countries, more than 30 million customers from 31 source markets travelling to 180 destinations, over 300 hotels, 136 aircrafts, 13 cruise ships and 1800 retail shops in Europe (TUI Group, 2014). This demonstrates TUI has strong tangible assets and reputation among the world, allowing them to generate new ideas and develop better services.
Resource or Capability
Supported by the Organization?