Beruflich Dokumente
Kultur Dokumente
Author ID:
Module:
Module Code:
Tutor:
21212808
Strategic Management
MS60005E
Anabela Soares
London
November 2014
Contents
Intoduction............................................................................................................................................3
PESTLE................................................................................................................................................4
P.E.S.T.L.E. analysis.........................................................................................................................4
Opportunities and threats..................................................................................................................4
Key drivers for change......................................................................................................................6
Porter Five Forses.................................................................................................................................6
5 Forces.............................................................................................................................................6
Industry attractiveness......................................................................................................................7
References............................................................................................................................................8
21212808
Intoduction
The tourism industry is always changing, trying to make the most of todays innovation and
resources that customers are willing to pay for. This report is an external environment
analysis of the European Tour operators to understand the current situation and where it is
heading. For analysis PESTLE has been used, outlaying the opportunities and threats,
and pinpointing the key drivers for change. The second technique used is Porters Five
Forces analysis, showing how these forces drive the industries profitability.
The
information in this report is collected from various data bases, internet sources, text books
and journal articles.
External environment Conditions, entities, events, and factors surrounding an
organization that influence its activities and choices (Business Dictionary, 2014).
European Tour Operator a person, company or organisation who is organising paid
travel arrangements and places to stay (package holidays) in Europe (Cambridge
Dictionary, 2014). Even though there are others outside Europe whose business it is to
send tourists to Europe, this report focuses on Europe based operators and Europe
destinations only for more specific purposes.
21212808
PESTLE
PESTLE analysis is a tool to scan the industries or organisations external environment by
focusing on the changes in its components (Pardey, 2007). It is widely used for marketing
purposes.
P.E.S.T.L.E. analysis
While customers, suppliers and competitors make the specific environment, the variable
parts of the general environment include:
Political
Economical
Socio-cultural
Social networks.
Globally aware.
Technological
Legal
Environmental
Air pollution.
CO2 emissions
Deforestation.
21212808
Socio-cultural
Technological
Legal
Environmental
21212808
and culture.
None found.
The changes in PESTLE variables do not necessarily mean they are opportunities or
threats. In many cases it may not make any difference or affects one part of the industry
more than the other.
Key drivers for change
People change and their lifestyle changes. This means new demands in tailored
holiday packages. As the population ages the seniors are common customers to the
dropping the loyalty scheme. The industry has to cope with price fluctuations.
Important driver for change is a political conflict. Europe is mostly safe and trusted
destination to travel but unrests in certain parts of it may suspend the destination. A
sudden suspension may end up with abandoning holidays or even cancelling long
term contracts altogether.
21212808
References
Bowden, R. (2007) Tourism: our impact on the planet. London: Wayland.
Business Dictionary. (2014) External Environment. [Online] Available at:
http://www.businessdictionary.com/definition/external-environment.html [Accessed 16 November 2014].
Coulter, M.K. (2010) Strategic management in Action. 5th Edition. NJ: Pearson Education.
Eurostat (2009) Study on the Competitiveness of the EU tourism industry. [Online] Available at:
http://ec.europa.eu/enterprise/sectors/tourism/files/studies/competitiveness/study_on_tourism_competitiv
eness_2009_en.pdf [Accessed 16 November 2014].
Eurostat (2013) Tourism industries - economic analysis. [Online] Available at:
http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Tourism_industries_-_economic_analysis
[Accessed 16 November 2014].
Keynote (2014) Tour Operator Activities Market Digest 2014. [Online] Available at:
https://www.keynote.co.uk/market-intelligence/view/product/11359/tour-operator-activities?
utm_source=kn.reports.browse [Accessed 16 November 2014].
McGrath, J. and Bates, B. (2013) Little book of big management theories and how to use them. Harlow:
Pearson.
Mintel (2011) Holiday market all packaged up - half of Brits prefer package holidays. [Online] Available at:
http://www.mintel.com/press-centre/leisure/holiday-market-all-packaged-up-half-of-brits-prefer-packageholidays [Accessed 16 November 2014].
Novelli, M. (2011) Tourism and political change. Annals of Tourism Research. Vol 38(2), p.731733
OECD (2008) Tourism in OECD Countries 2008: Trends and Policies
ONS (2014) Overseas Travel and Tourism, Provisional Results for September 2014. [Online] Available at:
http://www.ons.gov.uk/ons/dcp171778_384247.pdf [Accessed 16 November 2014].
Pardey, D. (2007) Introducing leadership. London: Butterworth-Heinemann.
21212808