• Afsætning
  • Uddannelse: HHX
  • Karakter: 12 tal
  • Ord: 1610

Indholdsfortegnelse
- Analyze the competition in the industry. Choose relevant models that will provide necessary perspectives on the competition

- Discuss possible growth strategies for the market leader and the market challenger.

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Uddrag
Every product or service has some kind of competition no matter what. It can either be close or distant competition.

These competitors are identified as product form, product category, generic competition, and budget competition.

In this case the biggest companies to compete against each other and have a very close competition are Carnival Cruise, Royal Caribbean Cruises and Norwegian Cruise Line.

This is what we call product form. Product category would consist of Disney cruise and MCS Cruise since it’s still the same concept but slightly different.

Generic competition could for example be other all-inclusive luxury vacations such as Club Med and full organized trips by brands like Abercrombie & Kent.

And lastly, we have Budget competition that is competitors that offer a product in the same price range. That could be a computer, a plane ticket, expensive pair of shoes etc.

In almost every market industry you have 4 competitive positions. The market leader, market challengers, market followers, and market niche companies.

In this case Carnival Cruises would be the market leader with 35% of the market, Royal Caribbean Cruises with 20% of the market and

Norwegian Cruise Line with 13% of the market would be the market challengers, all the other cruise companies such as MCS cruise with 7% of the market would be the market followers, and Disney Cruise with 2% of the market would be market niches.

Carnival Cruises is the market leader because they are the biggest firm in the industry with the highest market share. They are the leaders of the industry and product development. Other companies may also use their price as a reference to their own pricing.

Caribbean Cruises and Norwegian Cruise Line also have high market share but not as high as the market leader. These two companies try to outcompete Carnival Cruises with better products, better promotions etc.

All the other cruise ships companies are more or less “copying” the leading companies. They have lower prices because they don’t have to use as much money as the other companies. They don’t have to pay so much for product development.

Disney Cruise is a market niches because it’s a small specialized firm that is not really competing with big firms, unless they become very successful.