interrelationships
This is when you work together for the benefit of each party. Within interrelationships there are 3 different parts which are: chain of distribution, integration and interdependences
Interdependences is how different organisations rely on each other for example hotels rely on attractions so get their income.
Chain of distribution is how the products are distributed to customers. The chain of distribution is getting a lot more complicated for example many airlines rely on tour operators and travel agents sell seats on their aircraft. However, tour operators have their own airlines so they get to keep all the profits.
Integration is whether the chain is horizontal or vertical.
Horizontal integration is where a business at the same level in the chain of distribution merge together or are purchased by one and other, an example of this would be Manos which specialises in holidays to Greece and Turkey but now it has been brought by another tour operator called My Travel.
Vertical integration is where a business at one point of the chain of distribution purchases or acquires a business at a higher or lower level of the chain of distribution. An example of this would be Thomas Cook as all staff are trained the same way and all have similar skills and the same regulations.
Chain of distribution is how the products are distributed to customers. The chain of distribution is getting a lot more complicated for example many airlines rely on tour operators and travel agents sell seats on their aircraft. However, tour operators have their own airlines so they get to keep all the profits.
Integration is whether the chain is horizontal or vertical.
Horizontal integration is where a business at the same level in the chain of distribution merge together or are purchased by one and other, an example of this would be Manos which specialises in holidays to Greece and Turkey but now it has been brought by another tour operator called My Travel.
Vertical integration is where a business at one point of the chain of distribution purchases or acquires a business at a higher or lower level of the chain of distribution. An example of this would be Thomas Cook as all staff are trained the same way and all have similar skills and the same regulations.
how the chain of distribution operates:
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