B3 Flashcards
Interrelationships
Organisations working together to benefit them both
Airports and airlines
Interdependences
Organisations that rely on each other to enable them to provide a better product or service to their customers
Coach companies and Alton towers
Horizontal integration
2 organisations on the same level of the chain of distribution merges together
Vertical integration
Organisations at different points in the chain of distribution merge together
Tui owning travel agent, tour operator, airline
Advantages of inter relationships and inter dependence
Joint promotions and shared advertising, increase in customers, increased revenue, shared expertise,
Disadvantages or interrelationships and inter dependence
Confusion of identity, less personalised service for customers , bad press about partners , shared commission on sales