Business Strategy for Princess Cruises: PESTLE, SWOT, Ansoff Matrix and Porter's Five Force Analysis

This report covers the business strategy for Princess Cruises, including PESTLE, SWOT, Ansoff Matrix, and Porter's Five Force analysis. It also includes an evaluation of the strategic plan and its impact on the hospitality industry.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organization background ......................................................................................................3
Business analysis....................................................................................................................3
Strategic plan .........................................................................................................................8
EVALUATION .............................................................................................................................10
CONCLUSION ............................................................................................................................10
REFRENCES ................................................................................................................................11

INTRODUCTION
Business strategy means those aspects which are used for developing business by
covering its various aspects. The concept of business strategy majorly help for achievement of
goals and objectives set by an organization. These strategies relates within internal and external
environment of business organization. Also leads over focusing upon various key elements of
market. Then its deals with analysing of market situation by using marketing mix. Thus scope of
business strategy is wider as it impacts business directly. Nature is dynamic which makes
innovative strategies developed as per modern market requirements. The selected organization
within this report is princess cruises that is an American cruise line owned by Carnival
Corporation &plc. It has established in the year 1965 and has been operating within United
States of America. The report explains PESTLE analysis, SWOT analysis in relation to value
chain. Also ansoff matrix is covered with strategic management plan.
MAIN BODY
Organization background
The selected organization is Princess Cruises which is an cruise travelling organization
which has been operating within California, USA. This organization has been providing tarvell
to beautiful destinations all over the world.
Business analysis
PESTLE analysis
External business environment relates over those perspectives which tends to impact
business and its performance(Papaioannou and et. al. 2018). This analysis is based upon
elements like politics, economic, social, technological, legal and environmental factors. The
analysis is used for developing business strategies regarding modern business situations.
Further , PESTLE analysis in relation to princess cruises has been conducted as follows:
 Political factors: These are those factors which is used for developing guidelines and
rules that has been formed by government of particular county. Under it policies related
to tax and trade is explained. If tax policies formed by government levy heavy tax over
princess cruise then its over all sales is impacted negatively.

 Economical factors: These are those factors which has been impacting monetary growth
of an organization. The factors leads over achievement of economic goals and objectives
which has set by an organization(Martínez-Martínez abd et. al., 2019). It includes import
and export rate, inflation, deflation with goods and service circulation. If inflation rate
increases and price of travelling in cruse is impacted the organization like princess cruise
profit and revenue ratio is decreased.
 Social factor: These are the elements which is based over trends and preferences of
customers living within society. The factors impact Princess cruise in a way that if they
are not aware about modern trends of society then they may lose there customers on large
scale.
 Technological elements: The factors is based over development taking place within
technology on daily basis. These factors deals with development of technology on large
scale and an organization must cope up with this. Princess cruise must used latest
technology for improving its online booking services making its reach possible to
customers.
 Environmental factors: The factors are based over environment protection and
awareness regarding issues faced by environment. As per this organization like Princess
cruise must follow environmental rules regarding water pollution in order to control it. Legal elements: These are those elements which is based over legal perspectives and
guidelines that has been formed by government or law official. It is required to be
followed in order to make Princess cruise attain protection against any legal issues which
can hamper success.
SWOT analysis
SWOT Analysis is the tool which leads upon facilitating research of commercial
enterprises regarding its strength, weakness, threat and opportunities. The tool helps in
developing effective strategies that is based upon intern strategic development of an
organization. Through applying SWOT analysis commercial enterprises makes possibilities for
growth of organization within particular market. SWOT analysis has important role to play
within strategic development of an organization. Further, SWOT analysis helps upon improving
internal business environment within an organization. Thus SWOT analysis regarding Princess
cruise has been conducted as follows:

Strength Weakness
 It is third largest cruise line within the
world which makes organization
achieve high customer base.
 The capacity of guest carrying each
year over destination across globe is
also high which makes strong identity
developed for Princess Cruise within
international market(Li and Singal,
2019).
 The size of ship is also very big and
facilities provided are quality.
 Destination covered are more which
makes trip upon ship become more
luxurious in nature. This makes
customer satisfaction achieved more
effectively.
 High competition is one of the most
effective weakness which directly
impacts working of organization.
Competitors develops strategies which
makes Princess Cruise suffer in profit
generation.
 Services should be improved as low
quality services makes customer loose
trust upon the organization creating
negative upon organizations growth.
 Accidental cases have affected the
business in the past. This makes
organization revenue generation
decreased and
 Also COVID 19 has impacted
organization drastically.
Opportunities Threat
 The increasing demand of cruise
services across the world has created
opportunity for business of Princess
cruise expand within particular market.
 Low penetration within Asian countries
has provided opportunity for attracting
 Change in tax regulation has impacted
the business on large scale which
makes customer switch to other
organizations.
 New environment regulation has
created challenges for Princess cruise

customer and generating employment
on large scale.
 Joint venture with small players to
increase market share
in conducting its journey.
 Accidents could affect business and
brand image
Poter's five force
The Princess cruise comply with the Five Force to find out the Bargaining strength of the
buyers customer of Princess cruise, Bargaining strength of Suppliers of Princess cruise, Rivalry
opposition in modern market of Princess cruise, Threats of Substitute products Services affecting
the Princess cruise and Threats of New Entrants affecting the Princess cruise. It can be very
crucial for the commercial enterprise organization to peer the competition degree within the
market, and want is the want and desires of the market and customers.
Bargaining power of the buyers\customer of Princess cruise:
The Princess cruise has many competition within the marketplace to promote alternative
services so the purchaser have many alternative to shop for the bogus product. Generally
purchaser pick to shop for any offerings in which they should pay much less. Then Princess
cruise should make fee of services low as evaluate to alternative offerings within the
marketplace then handiest Princess cruise appeal to the purchaser to shop for. If the Princess
cruise promote the offerings as better fee as evaluate to alternative services in the marketplace
then the purchaser do not appeal to with the Princess cruise. The Customer pick to shop for the
services where they should pay much less within the marketplace.
Bargaining power of the suppliers of Princess cruise:
The Princess cruise has low bargaining electricity within the marketplace with provider
due to the fact the offerings that's supplied with the aid of using the Princess cruise has many
replacement offerings with the aid of using different multinational corporations within the
marketplace so if the agency offers the goods at low fee it impact the earnings margin however
the consumer continue to be appeal to to shop for the goods. If Princess cruise has offer
merchandise at excessive fee within the marketplace then consumer failed to appeal to with the
agency to shop for the goods and this impact the earnings margin of a agency also. This Princess
cruise has offering the services at low fee within the marketplace to maintain within the

marketplace and seize a big quantity of consumer in global and capable of beat the competition
within the marketplace.
Rivalry competitors in existing market of Princess cruise:
The Princess cruise have many present competition who offer the synthetic offerings of
Princess cruise within the marketplace. So the Princess cruise do the advertising and marketing
and commercial on huge scale in order that human beings conscious the logo and the employer
has set the rate of the offerings consequently in order that they without difficulty beat the
competition within the marketplace. The Princess cruise has to sacrifice with the income margin
because of the opposition degree within the marketplace. however they continue to be maintain
within the marketplace and rule the marketplace. By this the alternative competition fell strain
within the marketplace and that they did not make lifestyles like Princess cruise.
Threats of Substitute products\ Services affecting the Princess cruise:
In the marketplace there are numerous alternative offerings is to be had of Princess
cruise. So the Princess cruise additionally promote the synthetic of his very own offerings like
they're imparting on-line reserving and has higher app interface. It clean for the client to get this
at one region effortlessly and with the aid of using this in addition they captured the marketplace
with the aid of using client and that they effortlessly beat the opposition stage within the
marketplace.
Threats of New Entrants affecting the Princess cruise:
If within the marketplace new groups input then they arrive with new concept due to the
fact after they input within the marketplace they examine the marketplace first that what's the
requirement and want of the clients and make a offerings in keeping with it. Then most effective
the brand new entrant groups make a life within the marketplace. So that the Princess cruise has
to look at the brand new entrant enterprise like Albatros cruise, Queen Elizabeth cruise and
recognise what's the electricity of the enterprise and do make modifications in keeping with it in
order that they beat the brand new entrant enterprise without difficulty within the marketplace
and maintain the marketplace however for a term the Princess cruise has to sacrifice with the
earnings margin due to new entrant enterprise due to the fact the client pick and try and go to and
purchase with the brand new entrant enterprise.

Ansoff metrix
Segregated inside one of a kind marketplace which can be marketplace penetration,
marketplace improvement, services improvement and diversification.
 Market penetration: The Princess Cruises conducts marketplace penetration via way of
means of manner of the usage of advertising and marketing approaches over enterprise
organization(Bratton and Watson, 2018). The Princess Cruises has been selling
marketplace services through improving beauty over present package.
 Market improvement: This is UK vacation organization inside new marketplace that
makes established order over presence inside new geographical vicinity that has vicinity
over present advertising and marketing offering.
 Services improvement: The Princess Cruises growing over new servicesrange that is
base over introducing programs of room staying over new traces of meals menu and
diverse different things.
 Diversification: The Princess Cruises has been introducing vertical and horizontal
alternate which introduces new services inside marketplace and present services over its
line.
Strategic plan
Strategic planning is the process by which an business organization like Princess Cruise
is able to perform functions and authorities that covers various perspectives regarding business
and its development. The strategic management of functional units is based over operations
based upon strategies, goals and objectives which has been set by an organization. The plan
helps upon developing budget with revenue generation that facilitates business in its
development.

EVALUATION
It can be evaluated that PESTLE analysis makes contribution done regarding external
environment and value chain leads towards enhancement of business strategies which is based
over political, economic, social, technological, legal and environmental factor. SWOT analysis is
used with value chain analysis in a way that positive approach is developed towards development
of internal business environment(Akindayomi, Aktas and Amin, 2020). Then ansoff matrix and
poter's five force are used with value chain analysis to deal with inbound logistic, operations,
outbound logistic and after sale services.
CONCLUSION
From the above discussion it can be concluded that business strategy means those aspects
which has been used in order to develop various perspectives related to business and its
enhancement. PESTLE and SWOT analysis is conducted relating with value chain analysis
helping in making stability created within business development. Also strategic plan is made
which is helpful in developing strategies for business and its development.

REFRENCES
Books and Journals
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