Royal caribbean 27 share in north america and 22

Royal Caribbean 27% share in North America and 22% share in world market, Disney 2% in
North America, and Norwegian Cruise Line 10% of North America and small market share in
Europe. Other companies competed with Carnival brands in other select locations and
particular market segments. Consumers can seek out the competition without switching costs
if they can find better deals with similar products and locations that Carnival offers.
Potential of New Entrants Into an Industry
New entrants can enter the industry but several barriers of entry exist. These barriers
of entry can be challenging on new entrants depending on the laws and policies of the
registering country. The new entrant will have to research all the laws, treaties, policies,
regulations and permits needed to operate in the regions chosen. One particular barrier is that
other cruise line companies might have longer operating history and reputation, thus having a
brand awareness. By having this reputation, these companies have developed their brand
awareness and loyalty. Consumers might choose these companies over up and coming
companies since this brand awareness creates loyalty and a sense of security. The sense of
security is very important since a known brand might create a vision to consumers that these
vessels may be safer and secure due to their operating history. These other successful
companies have captured a good chunk of the market share that will make it difficult for the
new entrants to capture. The asset of having brand awareness might be considered a barrier
for new entrants entering into the leisure cruise vacation industry.

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Power of Suppliers
Suppliers play a huge role since a cruise without supplies is a ship that will not be
able to move from port. The authors Keeffe, Ross III, Ross, Middlebrook, and Wheelen
(2010) stated, “ The company’s largest purchases were for travel agency services, fuel,
advertising, food and beverages, hotel and restaurant supplies and products, airfare, repairs
and maintenance, dry-docking, port utilization, and communication services” (p. 13-12). The
power of suppliers is low since Carnival used a select number of suppliers that offered them
volume discounts instead of the numerous other sources that were offering competitive
prices. The company believed that there were enough dry dock and shipbuilding facilities to
meet their needs. These facilities were mostly located around the company’s operation in the
Bahamas, British Colombia, Canada, the Caribbean, Europe and the United States.
Power of Customers
Customers have a myriad of options when its comes to the leisure cruise vacation
industry. Carnival’s brands cover most of the customer segments in the industry to
accommodate the contemporary, premium and luxury. Customers in the leisure cruise
vacation industry have bargaining power in a market where there are similar products and
services without suffering any cost to switch companies. This bargaining power decreases as
customers find it more difficult to switch companies, thus causing the consumer more time to
find a replacement. When there are more competitors with similar products and services