The Leisure-Cruise Industry Porter Paper

Topics: Cruise lines, Cruise ship, Cruise line Pages: 4 (1323 words) Published: September 19, 2011
The Leisure-Cruise Industry
February 17, 2011
Business Management

Introduction
One of the rapid producing leisure industry divisions, the cruise industry faces several challenges. Whereas supply continues to rise at double-digit levels, demand battles to keep speed. Known the demands on communications and the jeopardy of an eroding on-shore practice, less port are in a location to provide accommodation the cruise lines as supply grows. At the similar time, the community sector's inspection of manufacturing practices associated to the surroundings, duty, safety, protection and work increases. Regardless of these confronts, numerous cruise lines report record levels of productivity. This analysis will calculate the leisure-cruise industry and help come to the conclusion on if entering the market is a great idea. This report will focus on the Porter’s Approach to Industry Analysis. Each force will be identified in their separate sections as well as the power of each force to permit a new entire in the market. Porter’s Six Forces

Michael Porter, an authority on competitive strategy, contends that a corporation is most concerned with the intensity of competition within its industry (Wheelen and Hunger pg110). The level of this intensity is determined by basic competitive forces (Wheelen and Hunger pg110).

Threat of New Entrants: Low
As stated in the book, new entrants to an industry typically bring ton it new capacity, a desire to gain market share and substantial resources (Wheelen and Hunger pg 111). When taking into consideration ingoing a leisure cruise industry, assets is key obligation. In my opinion threat of new entrants is low because as stated from Cruise News “Just in one of the ships Royal Caribbean spent one billion dollars”. So companies must be finically stable and be knowledgeable to enter the leisure cruise industry. In addition, since 2009 government has made it a requirement for every passenger to have a passport or passport id...

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“RCL-Royal Caribbean Cruises LTD Income Statement-Forbes.com, Web. 16 Feb 2011.”
<http://finapps.forbes.com/finapps/jsp/finance/compinfo/IncomeStatement.jsp?tkr=rcl&period=qtr>
“Carnival Corporation.com. Web. 16 Feb 2011.”
< http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-prlanding>
“Wheelen & Hunger (2009) Strategic Management & Business Policy, 12th Edition, Prentice Hall,”
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