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Management case study - Essay Example

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Management case study

By acquiring main players on the European market, Preussag could finally capture more than 30 percent of the European tourism market and was renovated under the new name – TUI Group.
Despite some major successes, it its strategy that could be observed in the case study, some additional steps or changes could be made in order to improve it and make final results of the operations even more successful.
Firstly, as it was mentioned in the case study the main reason behind consolidation – economy of scale has not yet been reached (Viardot 2007, p. 21). TUI Group made several serious acquisitions in European market and in UK, but they still have rather strong competitors on both markets. They were able to buy fully the main tour operator in France, but could merge only 30% of their main competitor in UK. In addition, MyTravel, one more UK leading tour operator takes a part of the whole market share. They have succeeded with buying German tour operators, but one more competitor originally from Germany is left, which is ReweTouristik. Therefore, TUI Group could try to expand their presence on the European market by continuing a strategy of merges and acquisitions with their main competitors. By doing this they will be able to expand their leadership on the market without making significant changes within the company. In addition, they would be able to reach the level of synergy that would help them to establish the economy of scale, so important in the industry.
Secondly, despite the major presence in EU, TUI Group could try to expand their operations in Asia. They could try move even further on East, to Japan. Having these great resources behind, experience and knowledge in multicultural operations and a good strategy, they could try to establish TUI Japan for Japan tourists, because Japan is considered to be a very attractive from the outbound tourism prospective country (Japan Tourism Marketing 2009) especially towards other eastern ...Show more

Summary

Restructuring have always been considered headaches for TOP managers in most corporations, because they consume a lot of resources, time and efforts and results are not always satisfying (Vance 2009, p.2). Preussag (ex-smelting and mining European giant) made something even more…
Author : emardeula
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