Royal Caribbean
Executive Summary
Royal Caribbean is the second largest cruise line company in the world and it is in position to take advantage of a recovering industry that is once again attracting high numbers of people looking to spend money. Royal Caribbean has strong brand awareness in North America where a majority of cruises originate, but it also has a strong international reputation through the other brands it operates as well as its own increasing presence in the European and Asian market.
Royal Caribbean was hit hard by the downturn in the global economy and it continues to be in a weakened financial condition due to large investments in new ships and rising operating costs. However, the total revenue for the company is back on the rise and the company remained profitable even during down years. Forecasts for the industry are trending upward and Royal Caribbean is in place to take advantage.
An internal and external environment analysis indicate that Royal Caribbean looks to remain profitable for the future but certainly has areas to improve up and become more in line with the industry leader Carnival.
Introduction
This report will review the cruise line industry and give an understanding of where this business has its roots. From there it will give a company overview of Royal Caribbean Cruise Ltd, the second largest cruise company in the world behind Carnival Cruises. This overview will give the reader a basic understanding of Royal Caribbean and lead into the in depth analysis of the company. An external environment analysis will be done to cover the trends of technologic, demographic, economic issues along with a Porter’s Five Forces Analysis. An internal environment analysis will look at Royal Caribbean’s recent financial history and a SWOT analysis will lead into the key results area. All of these factors will be useful in developing conclusions and strategic recommendations for future development of Royal Caribbean.
Industry Overview
The
Royal Caribbean is the second largest cruise line company in the world and it is in position to take advantage of a recovering industry that is once again attracting high numbers of people looking to spend money. Royal Caribbean has strong brand awareness in North America where a majority of cruises originate, but it also has a strong international reputation through the other brands it operates as well as its own increasing presence in the European and Asian market.
Royal Caribbean was hit hard by the downturn in the global economy and it continues to be in a weakened financial condition due to large investments in new ships and rising operating costs. However, the total revenue for the company is back on the rise and the company remained profitable even during down years. Forecasts for the industry are trending upward and Royal Caribbean is in place to take advantage.
An internal and external environment analysis indicate that Royal Caribbean looks to remain profitable for the future but certainly has areas to improve up and become more in line with the industry leader Carnival.
Introduction
This report will review the cruise line industry and give an understanding of where this business has its roots. From there it will give a company overview of Royal Caribbean Cruise Ltd, the second largest cruise company in the world behind Carnival Cruises. This overview will give the reader a basic understanding of Royal Caribbean and lead into the in depth analysis of the company. An external environment analysis will be done to cover the trends of technologic, demographic, economic issues along with a Porter’s Five Forces Analysis. An internal environment analysis will look at Royal Caribbean’s recent financial history and a SWOT analysis will lead into the key results area. All of these factors will be useful in developing conclusions and strategic recommendations for future development of Royal Caribbean.
Industry Overview
The
References: "Deep Sea Transportation of Passengers." Encyclopedia of American Industries. Online Edition. Gale, 2011. Reproduced in Business and Company Resource Center. Farmington Hills, Mich.:Gale Group Disney Cruise Line. (n.d.). About Disney Cruise Line. Retrieved October 14th, 2011 from http://dclnews.com/about-us/ Global Data IBIS World. (n.d.) Royal Caribbean Cruises, Ltd. - Company Report US. Retrieved October 14th, 2011 from http://0-clients.ibisworld.com.helin.uri.edu/enterprise/financialsannual.aspx?entid=30636 Royal Caribbean Cruises Ltd Royal Caribbean Cruises Ltd. (2010b). 10-K. Retrieved from http://investing.businessweek.com/research/stocks/financials/drawFiling.asp?formType=10-K Royal Caribbean Cruises Ltd