The Leisure-Cruise Industry Porter Paper

1330 Words Sep 26th, 2011 6 Pages
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
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Bargaining Power of Buyers: Medium
Passengers are the key buyers in cruise industry. For example Royal Caribbean has a revenue of 6.7 million year to day and a income of half a million dollars as stated from (Forbes, 2010). They’re not making as much as they would like, but due to the fix cost of fuel and maintaining the ship its better than nothing. Buyers affect an industry through their ability to force down prices, bargain for higher quality or more services, and play competitors against each other (Wheelen and Hunger pg112).The cruise industry as provide their buyers well vacation package which include numerous deals to satisfy the consumer needs with reasonable prices.

Bargaining Powers of Suppliers: High
Suppliers can affect an industry through their ability to raise prices or reduce the quality of purchase goods and service (Wheelen and Hunger pg 113). Fuel costs are the main battle in the cruise line industry. For example “Royal Caribbean Cruises Ltd. said it's ending fuel surcharges for now for certain cruises because the global price of oil has come down and stabilized” (Royal). So

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