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Running head: THOMAS COOK
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Thomas Cook
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THOMAS COOK
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Introduction
Thomas Cook is one of the world's well-known tour firms. The firms provide affordable
low-cost packages to numerous destinations worldwide (Polat & Arslan, 2019). Hence, the tour
operator emerged as a popular option for those traveling and searching for affordable gateways.
However, the collapse of the airline on September 23, 3019, of the hundred years old British Brand
marked the end of the world's oldest travel firms in the world. The company has existed and
continually created a tremendous change within the global tourism framework. Thomas Cook
established the firm in 1841 in Leicestershire. Initially, the business concentrated more on day rail
excursions. Cook believed that alcohol caused most of the social challenges and planned on a
special temporal train that would ferry temperance supporters to a meeting miles away (Polat
&Arslan, 2019). In the years that followed, Cook continually organized railway trips for
temperance society and Sunday schools until 1845, when he planned his first business trip to
Liverpool. Cook later diversified the company's operations in the UK, Europe, and other countries.
In the years that followed, the company expanded its operations to hotels, cruises, airlines, amongst
others, and its target market revolved around Britain’s middle class. The paper will examine some
of the problems and the prevailing situation of the organization using various diagnostic tools.
Thomas Cook SWOT Analysis
As a leader in this industry, the company has numerous strengths that have kept it afloat
over the years. These strengths have had a significant aspect in assisting the company in
maintaining its market share and entering new markets (Shengnan et al., 2019). One of the
strengths of the company has been the successful development of new products through
innovation. The company has also, over the years, kept a highly skilled working team through
training and learning programs. As a result, the company has had a skilled workforce and a
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motivated one to continually achieve the organization’s goals. Customer satisfaction has been one
of the company's biggest priorities, an aspect that has assisted the company in maintaining
customer loyalty. The other strength is observed in their supply chain. The organization enjoys
excellent supplies from its reliable suppliers that ensure the availability of raw materials on time
which is a significant way the company beats the challenges emerging from the supply chain
(Shengnan et al., 2019). Over the decades, the firm has established a network distribution that
assists the company in reaching its potential market. Through a strong portfolio, the organization
has expanded its product category in existing and in new markets.
Nonetheless, the company has a weakness that it can address to ensure its survival in the
market. The profitability ratio and the percentage contribution of the company are way below the
industrial average. The company is not a good predictor of demand forecasting, which increases
its continued miss of significant opportunities. Hence, the company has high inventory levels
compared to its competitors as it does not address the on-demand product issue. The company is
yet to dedicate its investments into new technology fully, and thus it becomes a challenge to
compete favorably with existing competition (Shengnan et al., 2019). The company has a good
financial palling framework. However, it fails to utilize the cash more efficiently. The product gap
is another weakness that limits th...
