Case studies

Nouvelles Frontières in 2000: The Internet Challenge



Nouvelles Frontieres has become, by the year 2000, the largest tour operator in France and the sixth largest in Europe. The case presents the main features of the tour operating industry in Europe and describes how Nouvelles Frontieres was able to grow so rapidly and so extensively in the context of this industry. The main focus of the case is on working out what Nouvelles Frontieres' competitive advantage is based on. In particular, students should assess the vertical integration strategy of the company into airlines, resorts, travel agencies, etc. By the turn of the century, a new challenge has emerged: Internet. Travel related services are the sector most affected by e-commerce. Moreover, Nouvelles Frontieres' main source of competitive advantage is its integrated network of exclusive travel agencies, which is being undermined by the exponential growth of online sales. The last section of the case presents Nouvelles Frontieres' Internet strategy. A video 'A Journey into Nouvelles Frontieres' (301-232-3) is available to accompany the case.

Keywords: Competitive advantage; Vertical integration strategies; Internet distribution; Bargaining power of distributors; Tour operating; Tourism; Air travel; International expansion; Competing internationally