Essays on Situation Analysis of the Royal Caribbean Cruises Case Study

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The paper "Situation Analysis of the Royal Caribbean Cruises " is a perfect example of a marketing case study.   The Royal Caribbean Cruises enjoyed major developments in the industry with their customer base increasing annually. However, after the September 11th 2001 when the country’ s World Trade Centre and the Pentagon, the organization started to experience a major problem that negatively affected their performance. Since then, the organization has been facing a number of economic and political related problems in the markets that they operate in. The major destinations for the organization are the Europeans countries and American states.

The major problem provided developed as a result of these attacks were the political environment is the political stability of the countries and states in which the organization operates. The result of this was that the organization customers reduced immediately. As a result, the organization had to contend with a great number of the travel cancellation as the consumers of their services chose to use other means that were much faster and were considered safer for use. The economic problem that the organization has faced was also as a result of the same problem in the United States that saw the share price of the organization fall by 40% and the company lost a range of about US$ 20 t0 25 million within the first week after the attack in the United States. Relevant and Key facts (qualitative and quantitative) Given that the Royal Caribbean Cruises is not the only organization operating in the industry, competition is a major problem that they constantly face in their daily activities.

Since the organizations provide luxury services to the consumers, the competition is usually based on non-price factors such as the quality of services, the brand name and goodwill of the organization and the different destinations that the organization provides for their customers. Carnival, a competitor of the Royal Caribbean Cruises, currently has about 43 vessels that provide the consumers with the services in the organization.

The organization has a good command in the market as the reported revenues in 1999 and 2000 were US$ 3.50 billion and US$ 3.779 billion respectively. With such facts, then it is important for the organization to consider improvements to increase its market share and reduce the competition that they face. Situation Analysis (synthesis; qualitative and quantitative) Strengths Among the strengths that the Royal Caribbean Cruises enjoy are the fact that they have purchased more than 3000 new passenger vessels to provide services to the consumers in the Caribbean and Europe.

Growth within the organization and the industry as a whole has been triggered by the presence of a healthy economy in both Europe and the Caribbean, a wide range of destinations that are served, good product positioning and additional ships purchased by the organization.

In the case of the Royal Caribbean Cruises, the purchase of new ships has helped the organization to e come more competitive as it has the opportunity to serve more consumers and provide an increase in the destinations that the organization serves. The size of the consumers who use and are loyal t the brand in the Northern part of the Caribbean alone are more than seven million consumers by the year ended 2001. This large size of the consumers in the organization makes the organization to enjoy potential growth over time as well as enjoying positive returns from their activities.

Given that the industry only attracts about two percent of the total leisure and travel market, then having such a large population utilizing the products and services of the organization, then the organization is enjoying a large market share of the total market.

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