Marketing Management Harvard Case Solution & Analysis

Marketing Management Case Solution

1.      Macro Environment Analysis:

Political:

All firms operate according to the rules and regulations. Disney is operating worldwide as well as it is well recognized. Al though the cruise industry is highly diverse, however it needs to incorporate the laws and rules of the specific country.

Social:

Trends among consumers and in society may affect the whole marketing plan. Most trends are demographic, and such trends contain changes in preferences and increase in the buyers’ power. However,it may positively affect the cruise business to attract the high-income level customers. The company can also be benefited as Disney has worldwide recognition and all customers enjoy Disney’s services. For instance, the young generation and high-income level class such as business class are more willing to make adventurous trips.

Technological:

Constantly changing and evolving technology may affect a company in different ways,but the cruise industry may not be affected due to less innovational changes.However, new features and comfortable travel has a high demand. For instant, new modifications and demand in the comfortable travel may cause Disney Cruise Line to bring innovational changes in the cruise.

Economic:

The economy plays a vital role in all marketing planning.However, it may be difficult to forecast future effects of the economy on Disney’s cruise business. For instance, the increase in fuel prices is a major economic factor that may affect the cruise business.

Natural:

The natural environment is highly unpredictable and this is the major obstacle in the cruise business. Moreover, storms and changing weather may affect the cruise business as it is not possible to get an exact forecast. For instance, storms and adverse condition of weather may cause increasing concerns regarding safety and precautions measures for the people on a cruise.

Competitive Environment Factors:

Threats of new entrants:

The threat of new market entrants is relatively low as this business doesn’t require vast technological advancements. Moreover, the cruise business also needs enormous investment to operate the business. New entrants need to make a huge investment as well as they need to have brand recognition order to have a successful business. Disney has a competitive advantage of strong brand presence that hinders the new market entrants.

Rivalry:

Rivalry among this cruise line industry is low due to less number of competitors in the market. The cruise line industry has formed an alliance, which deals with the issues such as unwanted behavior and competition within the industry. This has reduced the competition in the industry, as a result making companies operate in a friendly environment. They have associated to provide good, qualitative and leisure services to the customers, therefore there is no need to compete.

Threat of substitute products:

In the case of cruise line industry, the substitute may be traveling by air (airline), rail and road. Therefore, the threat of substitute is relatively high because most of the business class prefers to travel by air. However, they could not provide intended services which the customers want. Cruise industry provides adventurous trips in water, favorable environment, and leisure services to customers. This enables cruise businesses to enjoy a competitive advantage of being different.

Bargaining power of buyers:

In the industry, buyers are travelers who want to spend their vacations leisurely. In this sector of the leisure industry, customers are few or less and tend to be more organized. Therefore, this sector requires buyers who have high bargaining power. In this industry, consumers need to be well organized and willing to spend sufficient amount in leisure services, therefore, the pricing does not affect the cruise business, however quality matters a lot in this sector of the enterprise.

Bargaining power of suppliers:

The suppliers’ power in this industry is low. Disney cruise line relies on many suppliers to get their services accomplished, however the major supplier of the cruise industry is Shell that supplies fuel, but there are many other companies present in the market which can provide fuel to the cruise................

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