Disney Cruise Line Competitive Advantage

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The Disney’s cruise line has many strength and most of those strengths are attributed to the brand name and image that Disney has created over the years. Walt Disney was ranked 7th in the top 50 Global Brand ranking of the “Weekly Business Magazine.” The Disney Company has entered many different market niches over the years. These market segments are utilized very well in the Disney cruise. The company is the second largest entertainment and media corporation around the globe. The characters and products that are created cater to the customers and are later used in the cruise. One weakness is frequent change in top management. The many changes could result with the goals or visions of the company being skewed or misrepresented. Disney’s core competency is to create a magical experience for the customers. Sources of Disney’s competitive advantage are that they already have a very strong brand and image. Also Disney cruises can show movie premieres at sea on Disney movies that are premiering in the U.S. The ships also have decks which solely cater to children and their activities. There is a low threat of new entrants for the cruise line; therefore, Disney cruise does not worry much about competition emerging from that sector. To enter into the Cruise Industry you need a large amount of capital. Also you have to adhere to many government regulations which can also be costly. Disney cruise has a large threat of substitute. Customers if they are not going to land based vacations can opt to go to the other cruise ships such as: The Royal Caribbean, Carnival, Norwegian Cruise, and many others. When it comes to bargaining power buyers or customers have very lower power mainly attributed to the low concentration of customers in particular location. Customers are spread out through the country that they cannot collectively come together to control the prices. Another reason is attributed to the fact that there is simply a higher demand than what the...
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