Cruise Industry
MID 107
Cohort: Spring 2015
Alec Lekas
January 16, 2015
The Industry of Cruise Liners and How They Succeed
Introduction
Over the course of this paper, the Cruise Line industry will be thoroughly examined and discussed in order to answer some important questions. First, the current state and some brief history of the industry will be looked at. Some topics that will be discussed will be the structure of the industry, trends within it, the treat of substitutions and new entrants, and the power that the suppliers have. The second question will ask what the market is for the Cruise Line industry. In order to answer that, the market will be analyzed by answering topics such as market size, types of consumers, seasonal buying, special niches, and geographic constraints including governmental regulation. The third question will cover who the key competitors in the industry are. Some topics that’ll be discussed will be if the competition is direct or indirect, is the competition rough or minimal, and what types of niches/advantages companies have. By looking at these questions and answering them accordingly, the Cruise Line industry’s key success factors should stand out to you. The things that most affect industry members ability to prosper will explain to us why one Cruise Line is more successful in leading the marketplace than others. This will lay out the foundation to answering a very important question; what is the future outlook of the Cruise Line industry?
Main Body
The Industry
For those who don’t know much about the cruise line industry, it was said to begin around 1970 when about 500,000 people took part in overnight cruises. Since then, the passenger cruise industry, according to Cruise Lines International Association, has increased dramatically to more than 13.2 million people in 2008. Not only is business booming for the industry, but the economic benefit in the U.S. was about $38 billion. It’s estimated that 75% of the
Cohort: Spring 2015
Alec Lekas
January 16, 2015
The Industry of Cruise Liners and How They Succeed
Introduction
Over the course of this paper, the Cruise Line industry will be thoroughly examined and discussed in order to answer some important questions. First, the current state and some brief history of the industry will be looked at. Some topics that will be discussed will be the structure of the industry, trends within it, the treat of substitutions and new entrants, and the power that the suppliers have. The second question will ask what the market is for the Cruise Line industry. In order to answer that, the market will be analyzed by answering topics such as market size, types of consumers, seasonal buying, special niches, and geographic constraints including governmental regulation. The third question will cover who the key competitors in the industry are. Some topics that’ll be discussed will be if the competition is direct or indirect, is the competition rough or minimal, and what types of niches/advantages companies have. By looking at these questions and answering them accordingly, the Cruise Line industry’s key success factors should stand out to you. The things that most affect industry members ability to prosper will explain to us why one Cruise Line is more successful in leading the marketplace than others. This will lay out the foundation to answering a very important question; what is the future outlook of the Cruise Line industry?
Main Body
The Industry
For those who don’t know much about the cruise line industry, it was said to begin around 1970 when about 500,000 people took part in overnight cruises. Since then, the passenger cruise industry, according to Cruise Lines International Association, has increased dramatically to more than 13.2 million people in 2008. Not only is business booming for the industry, but the economic benefit in the U.S. was about $38 billion. It’s estimated that 75% of the
References: Lynn M. Pearce, Ed (2011). Vol. 2: Agriculture, Mining, Construction, Wholesale, & Retail Industries. 6th ed. Detroit: Gale. (2013). Number of cruise passengers by source market. http://www.statista.com.proxy.library.ohiou.edu/statistics/287111/cruise-passengers-by-source-country/ Schein, A (2014). Cruise Ships. Austin: Hoover http://mergent.firstresearch-learn.com.proxy.library.ohiou.edu/industry.aspx?chapter=0&pid=418