Royal Caribbean Cruise Lines

1
Royal Caribbean Cruise Lines

• Nikki Barkume
• Samantha Knurbein
• Clinton Turner

2
Company Overview

• Established in 1969. Based out of Miami Florida
• Own Royal Caribbean Cruise Lines as well as
  Celebrity Cruises
• Own 28 ships
• 35 of market share
• Second largest cruise company next to Carnival

3
SWOT Analysis
4
Macroenvironment

• Economics
• Fuel prices rising
• Social
• Cruise safety
• Environmental Awareness
• Political/Legal
• Government restrictions
• Technological
• Internet booking
• Newer ships/More energy efficient
• Internal system upgrades to promote efficiency
• Demographic
• Baby boomer generation
• Ships accommodating larger demographics

5
Porters Five Forces

• High Competitive Rivalry
• High Demand price signaling
• High Threat of Substitutes
• Many competitors in the travel and entertainment
  industry
• High/Low Bargaining Power of Buyers
• High Demand Low Power
• Many Substitutes High Power
• Low Bargaining Power of Suppliers
• Follow the Money
• Low Risk of Entry
• High Barriers to Entry

6
Industry Dynamics

• Focusing on becoming more efficient entirely
• Fuel Efficiency
• Booking Efficiency
• Labor Efficiency
• Technological Efficiency

7
Market Opportunities

• Large Untapped Market
• 90 of U.S. market has not cruised
• Increasing Capacity
• Greater number of berths
• Targeting Larger Demographic
• Higher Economies of Scale
• Integration Opportunities
• Horizontally Vertically

8
Key Strategic Issues

• Although they are the top innovator of the
  industry, RCL lacks significant market share in
  comparison with their top competitor Carnival.

9
Suggestion

• RCL needs to horizontally integrate its the
  only way they can begin to compete with Carnival
• Asian Demographic
• Acquire smaller companies