Royal Caribbean Cruise Case Harvard Case Solution & Analysis

Royal Caribbean Cruise Case Case Study Solution

VRIO Framework

Another broad variety framework used is the VRIO analysis, which provides the exceptional opportunity to the company to gain the practical competitive advantage in the market.

Resources/ capabilities Valuable Rare Imitable Organization Competitive advantage
Positive market reputation Yes Yes Yes Yes Long term competitive advantage
Leadership team Yes Yes No Yes Strong competitive advantage
Awareness of brand Yes Yes No Yes Sustainable competitive advantage
High customer rating Yes Yes Yes Yes Realized sustainable competitive advantage


The alternatives for addressing the inefficient employee management and weak reservation system are as follows:

  • Intuitive, faster and powerful reservation system

The company can implement the intuitive, faster and more powerful reservation system, due to which, the end result would most likely make the process of reservation more efficient, so that the amount of time that is required by agent to get interacted with customer would increase, hence generating more income. The new system would reduce the steps for making reservation from 7 to 5, and it would identify the past guest or clients, so that the travel agent would go through their history of purchasing.

Also, the newest automated functionality would help the company in saving the time of agent, shifting more control and flexibility into their hands and turning multiple phone calls into 3 easy steps. It would provide an intuitive booking experience on the basis of the travel partners’ feedback.


  • The greater marketing and sales synergy.
  • A modern booking approach.
  • Saves staff time.
  • The business is available for reservation.
  • Faster payments.


  • Requires an internet access.
  • It is costly.
  • An inefficient employee management.

The HR team priorities should be converted to drive the alignment of the company through improved performance management as well as an improved internal communication. It should improve the coordination and engagement among employees. It is significantly important for the company to implement the internal communication strategies, such as: corporate listening that would be facilitated in the struggling environment. The company should opt for the forward looking corporate strategy that would ignite the cultural shift.  Such strategy would provide the foundation to track the employees’ progress and performance with the passage of time.The company can motivate the employees by creating SMART goals.

The company should reduce the employee turnover rate, cross train employees, and the cost. The evaluation report of employees on clearly defined job expectation should be developed in order to assure that they receive actionable and clear input that would be applied for the greater organizational productivity. The easy to use and reliable cloud based employee evaluation software would improve the performance of the team as a whole.


  • It tracks and improves the employee performance
  • It cuts the employees’ cost
  • Improvement in the employees’ productivity
  • It generates greater benefits to the company.
  • Improves the employee loyalty and retention.
  • Results in recognition and reward.
  • Maximizes the engagement.
  • Clear accountabilities.
  • Cost advantages.


  • It is costly.
  • Hindrance in the performance of the employees.


After taking into consideration the alternatives to address the emerging issues with the organization, it is recommended that the company should use the IT spending on infrastructure, in order to improve the reservation system, which would enable the company to realize the maximum efficiency via marketing, sales as well as the revenue yield management capabilities. The allocation of budget on an intuitive, faster and powerful reservation system would enable the company to achieve the consistent, successful and substantial result over the period of time. The functions of the reservation system include: product management, pricing management, inventory management, financials, ship public facilities management, agency management, guest or client management, CRM, revenue and yield management. By improving the reservation system, the infrastructure of the company would be improved, hence making the customers satisfied and providing marketing before they board ships (Edelman, 2015).

Action plan

The company should determine the solution in the long run, which includes the restoration of a better infrastructure. The company should take considerable steps in the implementation of the intuitive, powerful and an efficient reservation system, such as; it should allocate the sufficient amount of budget on improving the customer loyalty, bolstering the profit and maximizing the market share, which can be done by allowing the agents to use the web enabled reservation system as well as the booking of more customized vacations for guests or clients.


To sum up, it is to conclude that Royal Caribbean Cruises Ltd ranks second among the most valuable and renowned second largest cruise companies.It was founded in Norway, and it is based in Miami, Florida, US.The CIO of Royal Caribbean Cruises Ltd is confronted with the problem of assuring the optimum alignment of the information technology (IT) spending with the business strategy, in order to implement controls and revamp processes. The company should take considerable steps for the implementation of the intuitive, powerful and efficient reservation system, such as: it should allocate the sufficient amount of budget by allowing the agents to use the web enabled reservation system and allowing the booking more customized vacations for guests or clients.

Appendix – SWOT Analysis

Strengths Weaknesses
      Strong market position

Second largest operator of cruise ships

It has 29 cruise ships

Strong brand recognition

Valuable and strong brands

High customer rating

Consistent sales or revenues

Qualified designers, machinist and executives,

Advanced technology as well as the energy efficient system of cruises

      Primarily viewed as a luxury vacation

Fuel cost largely depends on the market price

Inefficient allocation of IT spending

Inefficient and incompatible seven reservation system


Opportunities Threats
      Expand the business operations in Latin America and Asia

Efficiently allocating the IT spending on the reservation system, employee management

      State of the global economy, slow growth in Asia and economic weakness in Europe

Exchange rate fluctuation

Increasing cost of fuel

Strong market competition

Natural disaster and weather decrease in demand and brand damage

Face lawsuit and legal proceedings from unsatisfied customers

Negative or unfavorable publicity


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