The Purpose of this Report is to strategically analyse the competitive situation affecting the European Tourism Industry. Each force is discussed separately and in the order laid out by Grant (2009).

The first 200 words of this essay...

Module Title: competitive Strategy & Innovation

Module Code: BUSI22680

European Tour Operators

NTU Number: N0336973 Word Count:1560

The Purpose of this Report is to strategically analyse the competitive situation affecting the European Tourism Industry. Each force is discussed separately and in the order laid out by Grant (2009).

1) Threat of new entry:

When assessing the barriers to entry, legislation and governmental forces play an important role in the barriers to firms, to an extent that many economists believe the only affective barriers of entry are those set by the government(Grant 2005). Legislations imposed by the EU, such as the 2013 emissions trading scheme, may therefore affect the level of profitability and increase the competitive rivalry. TUI's CEO is concerned that incentivising the efficient use of aircrafts and the cap on fuel consumption may lower the competitive advantage, as larger firms with higher fuel consumption are forced to increase consumer's tax (TUI website).

The rise in no thrill airlines and the ease of setting up online agencies that are able to offer cheaper holiday packages have also placed pressure on operators such as TUI group and MyTravel which merged with Thomas Cook. These