THE ROYAL CARRIBEAN: OASIS OF SEAS Harvard Case Solution & Analysis

The royal carribean  OASIS of seas Case Study Solution

Background

The Royal Caribbean international is about to launch the world’s largest cruise ship ever built. The cruise ship will have the capacity of 6292 passengers in it and it will have 2165 crew members in it. The primary issue for the RoyalCaribbean international is that how it should position its ship and what market segment should be targeted for the ship as there are already other companies in the ship cruise business. The country in which the royal Caribbean exist is also in aneconomic recession so there must be a solid strategy which should surely work in these economic conditions. If a wrong marketing channel is used it can harm the reputation of the company and it will also make the revenue and both customers of the company will be lost.

The typical cruise customers are in their mid-forties and have the average income of $93000. The potential customers of the cruise ship industry approach the travel agents and ask some question regarding the cruise ships. The potential customers ask for their recommendation of cruise ship from the travel agents. In addition to this, they ask for aseven-day cruise to Greece and turkey. Some customers are tryers and ask for new cruise ships launched in the market whereas other customers are cost focused and ask for the cruise ship which offers them value for money for what they are paying. The cost-conscious customers are concerned with the level of service and the cost paid for it as the level of service should be thought to be a value for money for them, otherwise, they won’t prefer for that cruise ship in the market.

THE ROYAL CARRIBEAN OASIS OF SEAS Harvard Case Solution & Analysis

 

 

Positioning of the company

 

The positioning of the oasis of the seas will depend on what the passengers like about cruise, what are the critical success factors of the Royal Caribbean Company. In addition to this positioning is also about how your product differentiates from the competitors out there in the market as there are already three cruises there. The competitive edge of the Royal Caribbean is that they have made Oasis of the seas the world’s largest cruise ever built and this will help in marketing and differentiation of the ship form other competitors. It can be seen from the market analysis that the actual average growth rate (1990-2008) is the highest i.e. 13.94% in foreign areas whereas it is the lowest in North America i.e. 6.07%. If the viewpoint of revenue is considered, then cruise should be marketed in foreign country as there are more chances of higher revenue being earned from overseas due to high growth in passengers. See Exhibit No 1

The strategy of the competitor should be analyzed so that company can position its ship more appropriately...................

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