Different categories of law include:consumer laws; these are designed to protect customers against unfair practices such as misleading descriptions of the productcompetition laws; these are aimed at protecting small firms against bullying by larger firms and ensuring customers are not exploited by firms with monopoly poweremployment laws; these cover areas such as redundancy, dismissal, working hours and minimum wages. They aim to protect employees against the abuse of power by managershealth and safety legislation; these laws are aimed at ensuring the workplace is as safe as is reasonably practical. They cover issues such as training, reporting accidents and the appropriate provision of safety equipment5 Forces analysesTable 2ForcesThreatsCruise business descriptionThreat of New EntryMark
Показать всеet share decrease, new playersThere is extremely high cost of purchasing or selling a single cruise ship, and the high investment needed to maintain and manage a cruise line, which has a decisive influence on diverse aspects and strategies related to organizational and management issues. Given the amount of capital investment needed to enter certain segments in cruise business, we suspect the threat of new entrants is fairly low in the industry. Verdict: Low threat of new entrants.Threat of Substitutes.Market share decrease, prices reduction, cost increase due to higher quality The cruises may be substituted by other kind of trips (plane, railways). The cruise companies must have good marketing and advertising strategy in order to keep its clientsVerdict: Average threat of substitutes.Buyer PowerDecrease of buyers paying capacity, decrease of production volume and sales, expenses increase due to new services providing There is such risk. However cruise companies have special promotion and loyal programs, discounts for clients. Verdict: Average buyer power Supplier PowerThe risk of delivery costs increase, worth delivery quality, suppliers bankruptcy More than likely, cruise companies face some amount of supplier power simply because of the costs they incur when switching suppliers. On the other hand, suppliers that do a large amount of business with these companies also are somewhat beholden to their customers. Nevertheless, bargaining power for both the firms and their suppliers is probably limited. Verdict: Limited supplier power.Degree of RivalryThe risk of market share lost, prices reduction, possible expenses due to higher services’ quality Consumers in this category enjoy a multitude of choices for cruises. While many consumers prefer certain brands, switching costs in this industry are quite low. It does not cost anything for a consumer to buy one cruise form on company instead of another. This, along with a variety of other factors, including the forces we've already examined, makes the industry quite competitive. Verdict: High degree of rivalry. From table 3 can be seen that, cruises are competitive services. However, the high degree of rivalry is possible here. Marketing, innovation and brand image are therefore vital elements in such a competitive commercial environment, and key factors to succeed in a sector in a constant effort to find new sources of income and new strategies to maximize economic performance and profit. Market overviewOver the last decades, the modern cruise industry has responded to extensive market and consumer research with the presentation of innovative naval design concepts, new ship lengths, ever more exotic destinations around the globe, and new on-board and on-shore activities and themes, developed to offer a vacation alternative that satisfies the expectative of everyone.The cruise industry has gone through significant changes from the days of transoceanic transportation and tropical vacations only available to the domain of society’s elite, to the modern multimillion tourism and leisure industry that offers an affordable vacation option and a level of comfort difficult to match for the average citizen, with a number of people cruising that seems to grow every year in the world. Скрыть
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