Swot Analysis for Royal Caribbean International Cruise Line

Royal Caribbean International Cruise Line is a vacation company that owns ships in use worldwide. The company is handled by Davila F. Lourdes as the present marketing analyst. This company offers a good number of services such as ice-skating, luxury activities, gyms, and cinemas amongst others. The first ship within the company, termed as the Norway, had its initial operation in 1970 (Royal Caribbean International, 2011). Currently, the company has above forty-two different cruise ships targeting all types of income level tourists. The business has developed rapidly forcing the company to expand in the number of cruise ships and in terms of the ferrying capacity in current cruise ships. The present expansion has led to an increased transportation rate, entertainment facilities and travel activities.


The Royal Caribbean International Cruise Line is recognized for its excellence in value propositions that deliver wonderful vacation experience for its customers. This has been attributed to their superior services that have created a special brand position in the hearts and minds of every person who visits the offered cruise destinations. Subsequently, this has created customer loyalty (Royal Caribbean International, 2011). Generally, the cruise company is recognized for its strong brand as shaped over the last thirty years since its inception. Following this, the company’s premium cruise brand, termed as the Celebrity Cruise was listed as the best cruise ships worldwide. The company thus owns a powerful brand that has established an excellent reputation amongst its present and future clients. Additionally, the company is innovative and creative in maintaining its strong brand.

Another notable is that the company comprises of qualified and seasoned executives, designers and machinists of the most prevalent cruise ships within a global setting. For instance, Lourdes the marketing analyst is one amongst the many experienced employees within the company. Currently, the company is designing a larger ship known as the Oasis of the Sea that is forty percent larger than the present biggest cruise ship. Product differentiation within the company is evidenced by the income segmentations for various services. Moreover, the cruise line updates its system in a frequent manner through the adoption of advanced technology and energy efficient systems within the cruise industry. For instance, the industry has established the most energy effective cruise technology in all its ships thus lessening cost outlays.

Current technologies have also aided with the enhancement of the communication process relating to customers. The company has a website that can be accessed by anyone for documentation processes (Royal Caribbean International, 2011). Through online communication, the cruise line is also able to ensure timely and accurate responses to its clients. Other technologies include wireless internet services, cellular phones, and interactive televisions.


Royal Caribbean International Cruise Line is still using its old system of accounting. This is a big weakness especially for a great and well-known cruise industry since the issue has inhibited the company from working in an optimal level due to systems incompatibility with the present technological progressions. The industry is being led or managed by an aged workforce hence making the human resource system quite ineffectual. In fact, owing to the outmoded human resource system that the company still utilizes ineffectual systems like its accounting methods because an aged workforce always finds it hard to adapt to advanced technology. Generally, the company demands recording and homogeny of its internal process that cannot be achieved with the outmoded practices (Royal Caribbean International, 2011).

The inclusion of a younger workforce has led to the creation of a reactive culture in terms of clashes owing the employees age variation. With a decreasing output due to the same, the company is experiencing slow growth as compared to its competitors. For instance, the revenue performance is below its rivals; Royal Caribbean International Cruise Line profited five billion dollars while its largest competitor Carnival Corporation had about eleven billion dollars within the same period.


The company has a great number of opportunities that can be explored for sustainable extensions. First, the company trades in US dollars that is presently strong in comparison to other foreign currencies in the cruise market. Therefore, introducing a foreign work force is quite beneficial because fewer costs will be realized. In addition, the company has a good number of customers who still demand for cruise services within un-ventured international segments and thus an assurance towards a larger market. The company has a favorable demographic trend where it does not solely rely on a single market owing to the various market niches available. This is attributable to its appealing products (Royal Caribbean International, 2011). Following this favorable trend, the company has the opportunity to grow and develop within the future periods. Another opportunity for the company is noted in its international brands in terms of its flexible schedules and targets that should support the company in diverse market in the given industry.


Major threats facing the cruise line include the abnormal weather patterns that have infused navigational unpredictability. This is because the company’s operations in most cases evidence risks of unfavorable weather leading to cruise delays or even schedule modifications. Such weather can also lead to health issues. In severe instances, the company is forced to cancel various schedules thus influencing its profits (Royal Caribbean International, 2011). Following the present political situations owing terrorism acts, security has become a noteworthy issue. This will lead to decreased traveling rates due to fear of unfavorable incidents. High competition has been evidenced in various locations, with some lacking the capability due to economic downturn. With capital projects being established towards alleviating this, loaning services have led to high entries from new ships and thus unmanageable rivalry. Economic deepening has also enhanced fuel prices.

















Royal Caribbean International. (2011). Our Company. Retrieved from http://www.royalcaribbean.com/ourCompany/ourLeadership.do


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