Changing Business Management Styles: Celebrity Cruise Lines Case Study

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Celebrity Cruises Executive Summary During the recent economic contraction, the cruise industry has been continually changing with more carriers purchasing larger ships. This is part of an effort to offer better amenities when attracting upscale cliental. However, the industry has become more competitive and the total number of players has increased exponentially. In the case of Celebrity Cruise Lines, the company is undergoing similar challenges. To respond to these issues, the firm has been moving away from their core business model (i.e. medium sized ships and small markets). As time has gone by, executives have realized the need for competing more aggressively. This has caused the firm to increase the risks they are taking in order to receive a larger reward. To determine the challenges facing the company, we will analyze these issues and provide possible solutions. This is when the company will be more agile in adapting to these kinds of issues. Background Over the last few years, the cruise industry has been going through a number of changes. This is because there are more players in the market and many firms are offering aggressive pricing / packages in an effort to lure travelers. In the case of Celebrity Cruise Lines, the company had made a reputation for itself by reaching out to a core group of American customers. This accounted for 85% of the firms business, with 49% of clients as repeat travelers (who had used the company's services before). ("Celebrity

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