Club Med SWOT-analysis

After the analysis of the environment, like for Opodo and Mobility, we made a SWOT analysis for the Club Med. You will find hereafter the strengths and weaknesses of Club Med and the opportunities and threats of its environment.

Mobility SWOT-analysis

After an environment analysis about Mobility few posts down, a swot analysis allows to see more clearly positive and negative elements. Our SWOT bellow :

Opodo SWOT-analysis

Opodo as a business has now been analysed and we have looked at the environment around the company and the industry. It's therefore now time to summarize it in a SWOT model.

Environment comparison

In this comparison, we focus on the main similaritys of our three companies.

Macroeconomics forces

• All of the three companies are concerned of the crisis. Indeed, it can affect companies and particulars' expenses.


• The oil prices is one factor that can threaten the travel industrie. Increasing in the oil prices especially effect the Mobilitys cost, since one of their main ressources is oil using in the cars. Due to increase in flight tickets because of a increase in the oil prices, Club Med and Opodos business are also affected by that. Thus, since this is something that effect the whole industry the companies can propably still stay competitive.
  

Industry forces

• Each company adapt to an extent they offers to the customers. For instance Mobility proposes different vehicle dependent on customer's needs, Club Med offer different stays according to the kind of customers: private or business and Opodo supply with different services to their two customer segments. However, their adaptation is not too distinguished from the industry competitors.


• Media as a marketing tool has a huge influence on the travel industries'activities. Indeed, for instance, if media focus on environmental questions, it will have a positive impact on Mobility's business. People will be more aware of environmental issues and want to help with protecting the planet. Thus, they will reduce the use of their personal car for green transport. More generally, Media is one of the important tool in travel industry to attract new customers. For Club Med and Opodo, it can rely on media coverage to attract customers and sell them private or business journeys.
  

Key trends forces

• Travel industry companies today focus more and more on protecting the environment. Indeed, Club Med favours local products and employees. Opodo has not yet incorporated a strategy in their business where they focus on the environment, which is one of their weaknesses. Mobility, considered as green transport, encourages people to use its services instead of their own car which is bad for the planet. Club Med and Mobility have therefore already implemented one of the big industry forces in their strategies.


• One of the main trends in the travel industry is the eTourism. People use more Internet to book their trips especially in Club Med and Opodo. For Mobility, the customers have the opportunity to change their choice of rental hours quickly on the internet.


• Another trend which inluence the travel industry is the mentality shift. People are more open minded to discover new places, to use new way to move. Indeed, they are less reluctant to travel. Moreover, they want more help to protect the planet and will therefore turn to the green transports as said before.


• Neither Opodo or Club Med is today using smartphones applications, which they have to start incorporate in their strategy if they want to follow the market trends.
  

Market forces

• The market the three companies are competing in is characterised by high switching costs. For Mobility, who have not any direct competitors in Switzerland, customers, who would like to reuse a personal car, will face high switching costs. Indeed, if a customer wants to give up mobility for another transport way, it will cost a lot for the person. Mobility has many unique advantages such as the park in downtown for instance. The situation is different for Club Med and Opodo. The switching costs are not that important in the beginning of the customers relationship to Club Med and Opodo. However, they become more high on long term, because of their knowledge in the field and the fact that people get more comfortable with the two companies.


• In the travel industry, companies try to maintain a relation with their customers, for instance by sending e-mails, newsletters and the opportunity to sign up for a customer club. For instance Mobility send to their customers a newsletter each month and Club Med and Opodo have made a club for their customers.


• Government decisions can impact travel industry, for instance, for Mobility, if there is a restriction in using cars in the city. For example make some cities, restrictions of using the car if the number of cars is to high during certain times. People are in these situations obliged to use public or green transport. This will have a positive impact on Mobility. For Club Med and Opodo which operates in many countries, new law concerning the protection of environment or taxes for instance can affect its business.

Analysis of the business environment of Club Med

Industry forces

• The main actors of the tourism are the tour operators which imagine and elaborate the journeys.
  The marketing policy of the group is based on a customized marketing where one chooses his club, as you choose a holiday, in contrast to mass tourism.
  In travel industry, there is more and more a great saving which is made on the fixed costs.


• The new concept of "Club Med Passworld Teen Access" offers teens a place designed and drawn for them.


• High influence of the media on tourism. One study showed that 31% of people get their ideas in the travel magazines.

Key trends forces

• Concerning the trends of the tourism industry, we noticed that people’s mentality has been shifted. Indeed, few years ago, people wanted only holidays to rest, to be quiet. But today, people want to take advantage of holidays for discovery. There is a really need of culture and adventure. People wants to have new experiences, to know the local culture (visit of museum, of monuments, of natural sites, of exposition, etc.), to discover landscapes, etc.


• Besides, in this type of business, environment protection is more and more considered. With all the questions about global warming that have been emerged, people are more and more concerned with this problem. And because travelling produce a lot of pollution (for example, with airline transport), enterprises like Club Med have to take into account this problem in their offers.


• Another trend is the fact that, today, people travel gladly with friends and less with family, especially young people. So the business travel must consider it and propose offers that target this kind of consumer. That’s what Club Med do with its “Club Med Passworld”.


• And finally, let’s talk about the growing importance of the e-tourism. Internet really changed the way of preparing holiday or just a travel. People can easily find the best offers and make a choice at home Moreover, the presence on the web of the travel enterprise enable people to book a travel late (“Last minute” offers).

Market forces

• In this kind of business, offers are often segmented according to the type of consumers. We can distinguish four main types of consumers: family, senior, couple and bachelor young people.


• But consumers can also be segmented according to the type of the activities proposed. For example, business travelis growing in importance. There also exists sport travel, tourism of sailing, seaside tourism, tourism of mountain etc.


• Finally, in this kind of market, the customer relationship is very important. Indeed, the travel business industry has to be welcomed and gentile with its clients because, if a client has a bad experience, it is easy for him/her to switch from one tour operator to another one.

Macroeconomicforces

• Since 2000, the Club was not saved by the difficulties in which was confrontedthe sector of the tourism: war in Iraq, epidemic of pneumopathie atypical,threats and terrorist attacks, bad economic situation (crisis, rise of theprice of barrel of oil, …), etc.


• The group emphasizes the use of locallabor. This allows him toforge ties with thepolitical institutions and the culture of hostcountries.

References :
www.clubmed.ch
http://christophe.benavent.free.fr/IMG/pdf/clubMed_msgx_2007.pdf
http://www.slideshare.net/Mondadori/etude-tourisme

Analysis of the business environment of Opodo

Key trends

• Increasing trends of using apps and alternative ways for people booking travels on the mobile etc. which could be a threat for Opodo.


• Smartphone penetration is expected to reach 92% in Europe by 2014 with mobile phones set to overtake PC’s as the most common web access device worldwide.


• There will be power shift from search engine to smartphone manufactures.


• The first consumers using the smartphone were business travelers but now the leisure consumers are also catching up.

• Green environment. Consumers’ interests for the green environment are still increasing and the consumers not only want to improve themselves through fitness, healthcare etc., they also wants to improve others and the environment.


• An important development for Opodo is that there is a rise of travel and tourism reservations through social networks applications such as Facebook etc. It has already been shown that a markeeting tool as Facebook is important and idicates higher sales both for the companies in travel and tourist industry.


• Travel retails are expected to stagnate because of the past global economic crisis.


• Europen travel and tourism and week performance because of the crisis.



• Traditional airlines are becoming more and more similar in strategy with the budget airlines, using extended service offerings.


• The future trend in the hotel industry looks similar to the above mentioned, more and more hotels are charging for extended services.
  

Industry forces

• The competitors are other companies doing the same as Opodo, like ebookers etc. But it’s also the hotels, fly companies, car rentals and travel agencies.


• Travelmarket has introduce a "charge measure" for thier customers.


• The new entrants in the market are the travel companies focusing on new technology to use in the industry. (As we identified in key trends)


• The substitute products and services are the same as the competitors.


• It can also be some alternative travel agencies for the costumers there want to experience unusual destinations and more challenging activities when traveling.


• The same as the competitors and the substitute products and services.


• Workers – employees. Important to keep the good relationship with the customers.


• Shareholders – the biggest are: Amadeus 55.36% and Air France, British Airways and Lufthansa 10.24% each.


• As well the IATA has made a promise to cut the carbon dioxide emission by 50% unto 2050.


• Tourist industry is as well working strong with SCR.

Macro Economic forces

• GDP is stagnating.


• Increased unemployment.


• Indication of a huge future demand for employees to the airline industry.


• Oil price increasing which leads to more expensive flight tickets. This is a vital factor since the cost of fuel stands for 1/3.


• From the start of 2012 the EU airlines will need to pay for their emissions. Which can lead to more expensive air travel.

Market forces

• The major key issue for Opodo is the huge shift in the way consumers have to search and book their travel.


• The biggest growth potential is in the leisure segment ( arrow from the key trends to the market segment)


• Because of the costumer’s opportunity to compare prices on the net, it’s important for opodo to keep searching for the best package for their customers.


• The customers wants an easy and fast way to book their.


• The switching costs are high because of the key issue described in the “market issue”.


• Because the costumers easily can find and purchase cheaper products and services, the largest margin for Opodo could be archived in the relationship to the customers. To hold on to the loyal customers they have to keep developing the good relationship with both the business and the private customers through customer contacts and services and their customer club.


• Further trends in the airline industry is increased demand for employees and airplanes. Which indicates of a good future for airplain makers such as Airbus and Boing. The increase demand is mainly due to population growth (forecast of twice as many will be flying in 20 years). However, the profit margin for the industry lie only around 1% and are expected to decrease in 2012 to 0,8% because of oil price and country crises. Business customers are declining.
  

References
Opodo homepage
Ovum
Dagens Industri
IATA

Analysis of the business environment of Mobility

Industry forces

• Mobility hasn't got so much competitors but «e-covoiturage» (www.e-covoiturage.ch) is the only one direct competitor in Switzerland. In this company, anyone can suggest a car on a trip and people may indicate that he would like to carsharing on the sameroute. In e-covoiturage company, the car belongs to a customer, unlikeMobility, which owns the car (now Mobility has 26000 vehicles).


• To conclude with the last part, Mobility is the leader of small trips (carsharing) in Switzerland and has an excellent reputation in Europe.


• Mobility provides an adapted offer to customer (an adapted car at a personalized time slot).


• The main substitutes services are public transportation (TSOL, TPG, etc.), train companies (SBB-CFF) and car-rental companies (Hertz,Avis, etc.). It’s important to note that these companies are also crucial partners of Mobility. Taxis may be substitutes too, but very expensive.


• About the stakeholders, the government (or federation) is important and influential. Because, they have the power to tax cars or not, to make urban tolls or highlight Mobility that helps improve the environment. Media can influence people too if articles are ecology oriented.


• Finally, the important suppliers are carmakers, parkings, insurances and technologic partners (inside cars).
  

Key trends

• The main important technology trend is the electric car for Mobility. Indeed, car manufacturers are building more and more hybrid or electric cars. This electric technology is needed by clients of mobility because they are sensitive to the ecology.


• In add on the web application, Mobility provides a mobile application (to book a car everywhere). They knew how to make best use of technology trends.


• Last months, the ecology and the environment required a lot of attention (less now with the crisis). For two reasons (respect of ecology and environment), Mobility customers think that using carsharing is to be responsible and respectful.


• Nowadays population is young but less attached to the car because it's very expensive (this trend enter in Europe and strongly affects Japan car manufacturers companies).


• Finally, in geographic coverage, Mobility is very present in towns and less in rural zone. So most areas will be covered in a few years.

Market forces

• Mobility offers four months to try the service. In addition we have read that Mobility have loyal and very satisfied customers (results of surveys). So we think that Mobility has a high switching cost (this is reinforced by the fact that there is no direct competitor).


• About the main market segments, private and business customers are very important. They don’t pay large sums of money but these sums are quite regular (kilometers and time slot payments for each booking).But the segment which consists of other Europe countries or cities is interesting because it can grow in future years.


• The main needs of customers are car safety and save money (if we use Mobility, we save money compared to the cost when you have a personal car).


• About demands, it continues to grow and Mobility reached 100,000 carsharers in 2011.


• To conclude, we have found a risk about government law and protection of environment. If government provides a law or taxes against the CO2 emission, it can be positive or negative for Mobility. Positive if cars are banned in the city but not for carsharing Mobility. Negative if all cars (Mobility cars too) are banished from the city.

Macro economic forces

• Overall, although there is a crisis now, people attach more importance to the ecology.


• The cost of oil may attract more customers (costs become too high) and it may also weaken Mobility.


• About the other resources, we have a big motorway network, a lot of parkings, etc. So Mobility can be used everywhere.


• Last months and with the cost of euros, it can be easier to import cars from Europe to Switzerland.


• Bank environment in Switzerland is good, so Mobility has a possibility to borrow money from the bank (there is bank security in Switzerland).

References

- Mobility website
- Informations about Mobility
- Annual and sustainability report 2010
- Survey about the swiss population (graphic page 7)
- Cost of oil and mobility in Switzerland analysis
- Article about young people and cars in Japan
- Article about young people and cars in Europe
- Article about young people and cars
- Banking in transition – future prospects for banking in Switzerland
- Article about urban tolls in Geneva

Work in progress

Just wanted to share some pictures with you all, from our group work-day the 2nd of November. The day ended with the result you can see in the last picture. A lot of colorful post-it’s on a table in the canteen of Antrophole :)

"This year’s theme is a celebration of tourism’s role in linking together the cultures of the world through travel. With millions of people travelling the world each year, never before have so many people been to so many places, nor been so exposed to other cultures. This interaction between individuals and communities, and their diverse cultures, leads to tolerance, respect and mutual understanding - the building blocks for a more peaceful world."

(Source: http://wtd.unwto.org/en)