A)Strategic Capabilities and competitive advantages :

1) Unique resources : Resources-based view of analysis : (i) Tangiable A. Inbound logistics 1) A fleet of 145 aircraft. 2) 248 hotels with 157,000 beds 3) Cruise : Handle over 9,000 cruise ships through strategic alliance with 4 cruise liners belonging to Hapag-Lloyd Cruises and joint venture of TUI AG and Royal Caribbean Cruises Ltd. B. Outbound logistics 1) 4000 travel agencies 2) Approximately 3,500 travel shops 3) Insurance 4) Car parking and car rental service 5) Excursion 6) Tour 7) Destination service and cruise handling C. Marketing & Sales
1) TUI sponsors the football team of Bundesliga club

Hannover 96 since 2002 until now. 2) Online multi-media product marketing. 3) UK accommodation online travel agent. 4) LateRooms.com offers customers saving of up to 70% off the normal room rate. The customer can book online or by phone 24/7, 12 months in advance or up to the moment of stay, and pay when stay. D. Service
1) Differentiated product - The Differentiated,

unique holidays and flexible duration service. E. Procurement Good relationship with supplier (principal suppliers : hotel owners, operators, aircraft supplier.) 1. Payments are often made in advance. 2. Key strategic relationships with hotel chains, such as RIU, Fiesta, Atlantica. 3. Key strategic relationships with aircraft providers, such as Boeing. Intangiable

A. Technology Development Outsourcing the Information Technology on automate the ticketing activities, online hotel reservation and video conferencing. B. Human Resources 1. 53,000 employees and operating in 31 key source markets worldwide. 2. Coaching and monitoring staff by outsourcing to a third party. 3. Management receives feedback through employee opinion surveys. 4. TUI travel value two-way communication through elected employee representatives. 5. An all-employee share scheme enabling staff to acquire shares in the company on preferential terms. 6. The localization of airline. C. Firm infrastructure Group Risk Management Committee(GRMC), a committee of the Group Management Board. D. Reputation 1. Brand loyalty more than 200 brands in 180 countries. 2. More than 30 million customers which has the good customer base.
2) Core competence : Value-based view of

analysis :???????????
i.

combination of supply chain and value chain by the vertical and horizontal integration. strong distribution channel in the supply chain. the cost leadership by control the cost of upstream supplier.

ii. iii.

B)

SWOT : Strength :

Group Risk Management Goal congruence Differentiated product and service E-business refer to the barriers of new entrants Good customer base Brand loyalty High market share Joint venture with the Indian Travel and Tourism industry Since the sprint in 2009, the joint venture of TUI AG and Royal Caribbean Cruises Ltd.

Weakness :
1) Funding problem stakeholder of investor. 2) High fixed cost
3) Exit barrier because of high fixed asset.

4)

Threat (Sept 2008-09) the global economic crisis with a general slowdown of activities, consequently the massive unemployment and a major credit crunch for consumers. Therefore, it brings the business of TUI to a halt because of TUI is selling the luxuary product which is unnecessary product. The increasing of fuel oil will increase the fixed cost of TUI

The concentration of the players in industries, that will lower the bargaining power of TUI to customers.