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Fasten Your Seatbelts: Turbulence Ahead for the Travel Agencies

Industry Analysis
Competitive analysis is a critical component of the strategy for most firms. The Five Forces model of Michael Porter is one of the most widely used tools for assessing industry competition. Use the Five Forces model (p.52-62; pp 56-69 in 5th ed) to analyze the travel agency business outlined in Fasten Your Seatbelts: Turbulence Ahead for the Travel Agencies. Then explore how the internet is affecting this industry.
Directions:
1) Use a table format like that presented on p. 59 (p. 63 in 5th ed) to rate each element in the five factor competitive analysis. Submit these tables.
Answer the following: Is this industry an attractive one? Defend your answer.
2) Use the same table format to analyze the effect of the internet on this industry. Submit these tables.
Answer the following: How has the internet and other information and communication technologies (ICT) affected the travel agency industry.
3) Using the strategic group concept (p. 67; p. 72 in 5th ed), select two dimensions on which classify the travel agencies. Then use it to classify the following:
Real Adventures; STA Travel: Expedia; Kosher Expeditions; Thomas Cook; Travelocity; AAA Travel Agency; Circle of Asia; EuroLloyd Travel Group; Travel Services International; Morris Travel; Maritz; American Express Travel Services( Rosenbluth International); MedRetreat.
4) Outline the strategic decisions facing a travel agent in the late 1990s.

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