Professional Documents
Culture Documents
Team members Javed Ahmed Syed Mohsin Zafar Nazki Ravis Maqbool Alekhika
Contents
EFE Matrix IFE Matrix Tows Matrix Space Matrix BCG Matrix IE Matrix Grand Str
gy Matrix QSPM
EFE MATRIX
Contd.
Threats 10.Outbreak of Noro virus on cruise ships 11. Political unrest in Haiti,
UK bombings 12. Effect of September 11 attack on Cruise industry 13. Change in
US tax regulations 14. Average cruise customer is 50 yr old with income of appro
x $99000 15. Cruise industry highly dependent on External promotions and marketi
ng 16. Of 10.6 Mn people that took cruise in 2004, 9mn were from N America 17. 9
0% of bookings done through travel agents, who make more than 50% of their sale.
18. Highly differentiated competition in terms of ships & market between the to
p leader( carnival) and the rest competitors 0.05 0.07 0.06 0.02 0.04 0.05 0.04
0.02 0.04 4 3 3 2 2 3 2 3 3 0.20 0.21 0.18 0.04 0.08 0.15 0.08 0.06 0.12
Total score
3.0
IFE MATRIX
CONTD
weakness
11. substantial drop in RCC stock because of fears of collapse in tourism result
ing from London subway bombing 12.In 2004 Company anticipated a decrease in net
income of $9.5mn to $11.5mn in 2005 when the new tax regulations took effect. 13
. Carnival cruise has 77 ships where as Caribbean cruise has 29 ships. 14. U.S p
resence 82% and other countries 18% 15. Passenger ticket are the primary source
of revenue for RCC 16. RCCs Return on assets in 2004 is 0.039 as compared to Carn
ivals 0.06 Weight 0.06 Rating 2 Score 0.12
0.04
2
0.08
0.08
1
0.08
0.07 0.06 0.06
2 2 1
0.14 0.12 0.06
2.83
TOWS Matrix
S1.RCC is worlds 2nd largest cruise line after carnival with 29 cruise ships and
60,590 berths. S2. Covers approximately 160 destinations S3.Leader in ship desi
gn and cruise marketing, also order given to biggest ship (1,60000 tons.) S4.Own
s land properties in Miami, Florida, Cocay, Bahamas which are given for lease as
tourist destinations. S5. Offered industrys first fully automated cruise vacatio
n reservation system helping 250000 travel agents to access it. S6.Occupancy rat
e of 105% compared to industrial average of 102%. S7.30.2% market share in 2004(
3.5mn out of 10.6mn) S8.Earning per share of $2.39 in 2004 compared to $1.45 in
2003 S9. Offering unique midnight chocolate buffet. S10. Anchor programs which a
llows customers to accrue credits that can be used for cruises, upgrades and RCC
products. O1.Growth of cruise industry at 7.6%(average for 20 yrs) and 12 % gro
wth compared to 2004 O2. Growth in internet use, around 93%of travelers access i
nformation through net before deciding cruise O3.Cruise market generates $15mn a
year from N America O4.By 2008, more than 29mn adults aged 25 or older with hou
sehold income of $40000 or more to cruise O5.Capacity utilization of cuisse s co
nsistently >90% for 2004 O6.Industry target passenger market is between ages of
25 & 40,only 34% of this have ever cruised, 127 Mn have never cruised. 07.Presen
ce of players in every segment very low O8.Projection of >11mn passengers in 200
5 (9.4 Mn
W1. substantial drop in RCC stock because of fears of collapse in tourism result
ing from London subway bombing W2.In 2004 Company anticipated a decrease in net
income of $9.5mn to $11.5mn in 2005 when the new tax regulations took effect. W3
.Carnival cruise has 77 ships where as Caribbean cruise has 29 ships. W4.U.S pre
sence 82% and other countries 18% W5. Passenger ticket are the primary source of
revenue for RCC W6. RCCs Return on assets in 2004 is 0.039 as compared to Carniv
als 0.06
SO
1.Capitalize on growing industry by adding more and more destinations(s1,s2,o1).
2. Capitalize on present market position and built more ships to cater the proj
ected demand (s1,s2,s3,o4). 3. More use of IT enabled online booking systems to
attract more customers.(s1,s2,s3,s5,02,08) 4. Enter maximum number of segments w
ith more variety of ships (s1,s3,o7). 5.Channelize present resources and marketi
ng strategies to attract 84% US population , and 127 Mn capable customers(s1,s3,
s4s9,o6,o9) 6.Sustain present market position to cope up with growing demand.(s6
,s7,o1,o3)
WO
1.Capitalize on growing market (w1, o1,o3,o4,o6,o8,o9) 2. Capitalize on growing
market to reach the market leader (w3,o1, o3, o4 ,o8) 3.Aggressive marketing in
US (w4, o9)
Contd..
T1.Outbreak of Noro virus on cruise ships T2.Political unrest in Haiti, UK bombi
ngs T3.Effect of September 11 attack on Cruise industry T4.Change in US tax regu
lations T5.Average cruise customer is 50 yr old with income of approx $99000 T6.
Cruise industry highly dependent on External promotions and marketing T7.Of 10.6
Mn people that took cruise in 2004, 9mn were from N America T8.90% of bookings
done through travel agents, who make more than 50% of their sale. T9.Highly diff
erentiated competition in terms of ships & market between the top leader( carniv
al) and the rest competitors
ST
1. Use of current market position and marketing strategies to overcome the effec
t of political unrest (s1,s2, t2, t3) 2. Use of brand value to overcome advertis
ing promotional expenses (s1,s5,s9,s10,t6) 3. Use of online booking and IT facil
ities (s1,s5,t8) 4. Need to show more global presence ( s1, s2, t7)
WT 1.Prepare to cope up with political unrest and contingency (w1, t1, t2, t3) 2
.Generate more revenues to overcome taxes (w2, t4) 3. More global presence requi
red ( w4, t7) 4.Use of more IT enabled systems for online ticket bookings (w5, y
t8) 5.Capitalize on current position to reach market leader (w3, t9)
Space Matrix
Financial Strengths
1. Working capital negative $ 1412896 2. Net income as on 2004 is $474691 compar
ed to $280664 in 2003 3. Earnings per share of $2.39 compared to last years $1.4
5 4. Return on assets is 0.03 compared to Carnivals 0.06 Average
Rating
1.0 3.0 5.0 2.0 11.0/4 .0 = 2.75
Industrial Strengths
1. Growth 12% in 2004 compared to 7% in 2003 2.Cruise market generates $15 Mn a
year in North America 3.Growth in internet penetration 4. Player presence in eve
ry segment very low Average
Rating
5.0 5.0 3.0 2.0 15/4 =3.75
Competitive Advantage
1. 2nd largest cruise 2. Market share 30.2% in 2004 3. Calls upon 160 destinatio
ns 4. Occupancy rate 105% 5. Leader in ship design and cruise marketing Average
Rating
-1.0 -2.0 -2.0 -1.0 - 2.0 -8/5 = -1.6
Environmental Stability
1. Effect of Sept. 11 attack on cruise industry 2. Political unrest and UK bombi
ng 3. Change in US tax regulation 4. Norovirus attack 5. Highly differentiated c
ompetition in terms of ships and market b/w top leader and the rest Average
Rating
-5.0 -5.0 -4.0 -4.0 -3.0 -21/5 = -4.2
Space Matrix
BCG Matrix
Market share RCC (30.4%) Carnival (50.2%) Relative Market Share Ratio=0.6 Indust
ry growth= >7 High 1.0
Relative Market share Position
Medium 0.5 Low 0.0
High
20
RCCL
Industry Growth Rate
II Medium 0 I
Low
- 20
III
IV
IE Matrix
QSPM
Strategies
S1= Channelize present resources and
increase market presence in North America.
(Market Penetration) S2= Increase Global Presence, Create New Markets. (Market D
evelopment)
Market penetration
Market Development
Key External factors
Opportunities
Weight
AS1 4 3 4 4 4 2 2 4 4
TAS1 0.32 0.18 0.28 0.28 0.20 0.14 0.14 0.28 0.24
AS2 2 1 1 3 3 4 3 1 1
TAS2 0.16 0.06 0.07 0.21 0.15 0.28 0.21 0.08 0.06
1.Growth of cruise industry at 7.6%(average for 20 yrs) and 12 % growth in 2004
compared to 2003 2. Growth in internet use, around 93%of travelers access inform
ation through net before deciding cruise 3. Cruise market generates $15mn a year
from N America 4.By 2008, more than 29mn adults aged 25 or older with household
income of $40000 or more to cruise 5. Capacity utilization of cruise s consiste
ntly >90% for 2004 6.Industry target passenger market is between ages of 25 & 40
,only 34% of this have ever cruised, 127 Mn have never cruised. 7.Presence of pl
ayers in every segment very low 8.Projection of >11mn passengers in 2005 (9.4 Mn
in N America) 9.Only 16 % of US population has ever cruised
0.08 0.06 0.07 0.07 0.05 0.07 0.07 0.08 0.06
Threats
10.Outbreak of Noro virus on cruise ships 11. Political unrest in Haiti, UK bomb
ings 12. Effect of September 11 attack on Cruise industry 13. Change in US tax r
egulations 14. Average cruise customer is 50 yr old with income of approx $99000
15. Cruise industry highly dependent on External promotions and marketing 16. O
f 10.6 Mn people that took cruise in 2004, 9mn were from N America 17. 90% of bo
okings done through travel agents, who make more than 50% of their sale. 18. Hig
hly differentiated competition in terms of ships & market between the top leader
( carnival) and the rest competitors
weight AS1 0.05 0.07 0.06 0.02 0.04 0.05 0.04 0.02 0.04 1 1 1 2 3 4 2
TAS1 AS2 0.07 0.06 0.02 0.08 0.15 0.16 0.08 3 4 4 4 2 2 3
TAS2 0.21 0.24 0.08 0.16 0.10 0.08 0.12
weakness
11.Substantial drop in RCC stock because of fears of collapse in tourism resulti
ng from London subway bombing 12.In 2004 Company anticipated a decrease in net i
ncome of $9.5mn to $11.5mn in 2005 when the new tax regulations took effect. 13.
Carnival cruise has 77 ships where as Caribbean cruise has 29 ships. 14. U.S pr
esence 82% and other countries 18% 15. Passenger ticket are the primary source o
f revenue for RCC 16. RCCs Return on assets in 2004 is 0.039 as compared to Carni
vals 0.06
Weight 0.06
AS1 2
TAS1 0.12
AS2 3
TAS2 0.18
0.04
1
0.04
4
0.16
0.08 0.07 0.06 0.06
3 2 2
0.24 0.14 0.12
2 4 4
0.16 0.28 0.24
Sum Total Attractive Score
4.79
5.29
Favourable Strategy is to create new Markets globally, (Market Development)
Reference
www.royalcarribean.com www.cruiseindustrynews.com www.cruising.org www.iccl.org
Strategic Management by Fred R. David
Thank you
Market share JK Cement (2.6%) ACC (12%) Relative Market Share Ratio=0.2 IFE = 2.
61 EFE = 2.59 High 1.0
Relative Market share Position
Medium 0.5 Low 0.0
High
20
JK Cement
Industry Growth Rate
II Medium 0
I
Low
- 20
III
IV