Strategic Analysis for Tui Travel PLC Essay Example | Topics and Well Written Essays - 2500 words

Strategic Analysis for Tui Travel PLC - Essay Example Additionally, while other companies in similar marketplaces are experiencing drops in share value, based on the current economic crisis across the globe, TUI Travel, Plc. has witnessed a 42 percent increase in share value (TUI Travel, 2009). What this suggests is an organisation which is satisfying stakeholder expectations and is reaping the profit of having a very solid business model and diverse line of company brand names. Perhaps this high share value can be attributed to having a business model which recognises opportunities for improvement and looks continuously for methods to make the business even stronger. For example, in 2009, TUI Travel entered a strategic alliance with Air Berlin and will now own almost 20 percent of Air Berlin (Done and Wiesmann, 2009). This new strategic alliance will give TUI Travel a multitude of new opportunities for customer air travel and give the firm more destinations to provide to their many customers. Even though TUI is not invested into this alliance for a long-term, ownership agreement, TUI is actively looking for opportunities to expand its brand presence and keep the TUI name both flexible and financially-strong in the minds of its customers and investors. TUI also seems to have a very high cash availability, which is something that many companies in today’s economic climate cannot say. Cash increased by a considerable margin from 2007 to 2008, suggesting that TUI has the financial capabilities to consider many different alliances or acquisitions in the pursuit of giving the company a stronger brand image and more options for holiday for its many travel customers. There are many strengths under TUI’s current business model, one of which is the external environment which is prompting many positive changes to how the business performs internally. Arends and Niththyananthan (2009) suggest that TUI is now facing much lower fuel prices, lower