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Analysis FROM THE Travel and leisure Industry Marketing Essay


Environment play an important role to the survival of organisations, its change can be fatal for organisations. Macro-environment factors that impact to a greater or lesser extent on virtually all organisations. So does the tourism industry. To be able to achieve authority in the travel and leisure industry it is necessary for European travel operators to undertake a PESTEL analysis to make certain how these factors are changing now, how they are likely to change in the foreseeable future and the actual macro-environmental forces that drive competition in tourism industry.

PESTEL analysis of the tourism industry


EU enlargement

There are increasing variety of countries want to become listed on the EU and based on the BBC media, eight countries are sitting on the sidelines to join the European Union. (BBC, 2010)

Then Euro

The introduction of the euro simplifies the money conversion of tourists.

Aviation Taxation

The Western european parliament has needed airlines to pay tax on aviation fuel, and be brought in to the EU's carbon emissions trading design (BBCNWS, 2006)


Exchange Rate

The euro Continuing depreciation this year, No more than half of the year 2010, the euro rate of practically 20% depreciation of the buck, only to fall season 7% in May, the euro has hit the longest in 11 years the beginning of a slump. (Julia and Jack, 2010)

Low Interest Rate

European Central Loan provider announced on Sept 2, 2010 to keep interest levels at record Lows.


Ageing population

With living specifications improving and the extension of life expectancy, elderly travel can be more frequent, the proportion of seniors in European countries travel up to 60%. (Europa, 2007)

Changing travel pattern

Consumers expect more choice, personality and variety, they no longer want to visit according the route that arranged by the travel company but prefer to travel under their own will.

Holiday preference

In recent time, the amount of short holidays has grown by 47% in Western and one in two holidays was short excursions. European vacationers have altered their action, their desire for domestic journeys alternatively than those abroad



With the introduction of technology, travel Operator not only retailing travel travels online, but also through travel organizations, television and call centers. (Johnson and Scholes, 2008)


With advancements in technology, travel operator can gather all the information of hotels, air seat tickets, flight, and traveler routes to make their products and services more cheaply and with a better standard of quality.


Iceland Volcanic ash

Volcanic ash closes British airports and costs Western travel and leisure one billion Euros

Terrorist attacks

Recent risk of terrorist problems will struck the European travel and leisure industry


Restrictions on mergers and acquisitions

The competition plan of EU somewhat restricted mergers, acquisitions and takeover between companies. (European union business)

Key drivers for competition

Social (Ageing populace)

Vacation travellers before year 2050: 60 to 74-year-oldsa

Source:http://epp. eurostat. ec. europa. eu/statistics_explained/index. php/Tourism_and_sustainable_development (22 November, 2010). Online by Europa. european union.

Demographic change impact greatly on the travel industry. It really is predicted that within the last decade of the century, the European inhabitants aged over 55 will develop by 10%, people over the age of 65 will develop by 54%, the rate of growth within the next century will increase, and from the graph above it is evident that the elderly group travellers will exhibit a steady development rate until 2050. (Europa, 2007)

Since generally the older have strong payment capacity with a great deal of leisure time and also they are all have strong eager to travel which means this significance increasing of this segment makes competition between Western travel operators, most of them pay more focus on older people market and as the elderly people prefer venturing with family, enjoy short holidays and desire for the ecological environment, so face of the huge market, virtually all the Western Travel Operators have made a quick reaction and made different strategies. The First choice provides family getaways and villa getaways to older people people and the Visiteurope supply people plan the trip independently straight also The Golf club med special offers Eco aspect resorts and family vacation to the elderly tourist.


Companies through merger, acquisition and takeover can grow markets and invite the companies to develop new products more efficiently or to reduce creation or syndication costs. However, The EU's Competition Insurance plan keeps an vision on companies to make certain they don't club together to talk about the market between them or don't react in ways to exclude would-be competitors.

In order to enough time merger issue, the many travel Operator commenced to slow down the pace of mergers and started to increase their product line utilizing the original resources. Since TUI have previously merged in many companies they have significantly more resources, they offers packaged or 'all-inclusive' pre-paid and preplanned trip to its customers, also organized the transport between airport terminal and hotel, provided local excursion, offered assistance for car renting, etc. They also within the sail activity. And the Uk MyTravel Group retailing not only fully packaged travels but also tour services (including air travel, hotels, retail travel services and tours). The ReweTouristik asserting to have the biggest been able travel syndication network in Germany and offering deal vacations in more than 1, 300 travel firms. (Johnson and Scholes, 2008)


The PESTEL examination provide a better understanding of the impact of macro environment to European Travel Operators, they must use the PESTEL and make an instant respond to the changing environment to attain the control of the travel and leisure industry.


Analysis of Hi-fi Sector


Music plays an important role in our daily life, with the development of technology people buying and being attentive patterns change, many digital music devices show up such as Apple's ipod touch or Sony' Music player which are threat the hi-fi sector, how and where to compete become the main issue to the hi-fi manufacturers. In this article, the following issues will be discussed: SWOT evaluation of the hi-fi sector, Strategies of Ansoff matrix and Apple's business models.

SWOT Analysis


Produce sound system at highest quality.

High performance criterion provides a great customer support before and after sales: lots of the personnel is audiophiles themselves, they provides the professional knowledge to their customers.

Reputation: Linn, Naim and Meridian have high brand value, produce the best hi-fi gadgets with high price premium which will make many audiophile customer stick with them.

Integrated product profile: the merchandise portfolio of Linn now addresses a variety of sources, amplifiers and loudspeakers including surround systems and multi-room home installations.


High price: The entry-level systems from the Hi-fi organizations typically start between 1000 and 2000. (Johnson and Scholes, 2006)

High cost services: Linn provide their prospects to audition the merchandise at duration before they purchase and Naim run non-profit-making basis servicing and repair.

Financial Low turnover: the annual turnover of Phillip of almost 20bn but to the three hi-fi firms it only stayed in million position of and profitability of them are less than 2 million.


Social: from the perspective of Maslow's hierarchy, the hi-fi product remain needed in the esteem need stage.

Technology: with the growing of network technology, the three hi-fi companies can use the web to expand promotion, expend distribution network to get more potential clients.

Consumer market: Still have the consumer market. You may still find many customers seeking hi-fi products.


New competitors look: Apple, Philips and Sony. Apple now retains a dominating position in the digital music marketplace with 65% of the hard-drive-based music market.

Global Compact disc sales and more aged technologies have fallen 23% in value during the last five years while the sales of Ipod device increased of 207% and MP3 are flourishing.

Illegal Downloading: Illegal downloading will make the company lose potential prospects.

Change in buyer behavior: With the change of the tendency people seems focus more on variety and fashion than quality and affordable technology is popular.

Take features of opportunities

It holds true that the specialist hi-fi firms faced many exterior hazards, such as new technology, a high competitive rivalry (Phillips, Apple, Sony); however, they can conquer the threats using their functions and their primary competencies to consider good thing about those opportunities. They produce sound system of the highest quality, offering high grade prices and unique customer support. What's more they are also the know-how of hi-fi sector and have professional knowledge of these high quality products. Also their reputation in hi-fi sector is really high. Lately, they remain the benchmark of the hi-fi sectors.

Strategic options of Ansoff matrix

Source: http://tutor2u. net/business/strategy/ansoff_matrix. htm

Ansoff matrix provides a simple way of creating four basic substitute directions for tactical development. You can find is without doubt that change produces market can gain opportunities and the potential for dramatic development, however, change could also involve fierce competition. As product development can be an expensive and high risk activity so we choose market development instead.

Market development Strategies

To change the marketing development first we have to make sure the Critical success factors (CSFs) of specialist hi-fi sector. It is clear that finest quality of sound system is their CSF. So the manufacturers should continue steadily to provide such a good quality of audio and keep on satisfying their "audiophile" and keep maintaining brand value by keeping high premiums on products. From then on manufacturers should utilise resources, capabilities and competences to increase range.

New segments :

Online buying: While using growing of internet technology, the hi-fi manufacturers should totally use the internet to show services to customer, let customer understand the hi-fi product in thorough directly through internet, purchasing products without departing home and present the high quality lifestyle ideas to their customers.

New users:

Actually, hi-fi system isn't just use to hear music, customer can connect the hi-fi product with TV, video, computer to take pleasure from auditory feast all the time. Specialist hi-fi manufacturers should promote their Hi-fi system in various ways such as cooperate with luxury hotels to install sound system in their hotel or sponsor some big occurrences to make more folks more familiar with the hi-fi system.

New geographies:

As Linn, Naim and Meridian have been founded for many years, they curently have ability to trade growth. Develop market to China, India seems a great choice. While using development of contemporary society, many people in developing countries are now positively seeking high-quality standard of living. The hi-fi system is also easier accepted by the rich people in these countries. So Manufacturers can consider starting branches in these countries.


As the sales of turntable and Compact disk products keep lessening, the hi-fi manufacturers can consider reducing production of these products to focus resources on new market.

Strategic alliances

Since iTunes have already dominate the music marketplace, and there are also have demand for high quality music, so the manufactures can make proper alliances with iTunes to get market publicity and appeal to more iTunes users to buy hi-fi products. (Johnson and Scholes, 2008) Also apple can use the skills of hi-fi sector to boost their quality of audio.

Apple's Business Models

Innovation and creation ˜ ipod device+iTunes˜.

The perfect integration of ipod device and iTunes created a whole new business style of Apple. (Mary, 2010)While using iTunes released in 2003, Apple began being able to access to the music market, iPod users through iTunes may easily find their desired music of cheap prices with convenient payment and gain best music experience from it. Also, iTunes greatly marketed the selling of ipod device and let the ipod touch distinguish with other music players, within a brief period iPod occupied practically 90% of the market and now Apple occupied 65% of the hard drive structured music market talk about.

Perfect product line

iPod is one of the most successful and impressive products of Apple with a perfect product line. For different market segments iPod have different product lines. The new training video iPod will occupy the high-end market, allowing users to take pleasure from full range of audio-visual and iPod nano will take up the mid-market, while iPod shuffle main in low-end of the market. . (Zhangming, 2010)

Good quality /price ratio

Apple's products are trendy and impressive and the ipod device is cheaper than the high 'accessibility -level' audiophile system with capacity to store huge quantities of data.


New versions of the ipod device are released which can play video and store photos and the iTunes store is starting to provide chance to buy films and episodes of popular Tv set series online. (Johnson and Scholes, 2008)

Make money from music activities

Hardware products

iTunes is free for users which is very easy to use also to download but it have to work with with Apple, if customers want use the iTunes they need to buy Apple's hardware products, which let Apple gain high benefit from it.


iTunes achieve long-term steady earnings progress. Customers pay for each download when they use iTunes. Although it seems that iPod have more revenue than iTunes, the main element to successful is it integration of iTunes. iPod, after all, have a product cycle, and iTunes music service will have been provided along with iPod, from this perspective, iTunes isn't just offers a new income model for Apple but also provides long-term steady source of earnings. (Xiaosa, 2010)

Deep selection of accessories

iPod created a huge and growing accessories market. Besides, there's also a large variety of third-party accessories, from documenting to the game. What's more, there are other iPod-based device and adapter relationships and nearly every day new products seem. (Mary, 2007)


The hi-fi sector is in the competitive environment now, however, by keen on producing high quality sound system, using the marketplace development strategies and learning the business models of Apple, the hi-fi manufacturers still can take advantages from the opportunities.

Word matter: 2100 words

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