Swot Analysis

STRENGTHS-S1. Lowest Break Even Point in the Industry2. Increase in Revenue, variable Costs Increasing Slower Than revenue3. Customer Loyalty/Increase in 1st Timers4. Management Experience & Intution WEAKNESSES-W1. Deep Discount Pricing2. Larger Ships=Lower Quality3. Competition Copies Successful Strategies4. Need Clearer Acquisition Strategy5. Non-Core Business Underperforming

OPPORTUNITIES-O1. Low Prime Interest Rates2. Tight Money Cruise Good Value3. Liberalized tax laws4. Strong Dollar5. Baby Boomers will Retire and have Increased Disposable Income6. Baby Booms Retire in Mass SO STRATEGIES1. Develop Aggressive Loyalty Program (S1,S3,O4)2. Expand Capacity & Market Push in Alaska and Caribbean

(S1,O4,O1,O5,O6)3. Develop Far East Market (S1,O1,O4,O5,O6)4. Create National Travel Agency (O1,O3,O5,O6,S1,S2,S4)5. Purchase Rival Line (S1,S2,S4,O1,O3,O4,O6)6. Create New Line w/low ship capacity (S1,S2,S4,O1,O3,O4,O6)7. Market to Corporations for business retreat cruises (O1,O2,O3

THREATS-T1. Increase in Capacity, Overcapacity Exists Deep Discounting Exists2. Major Lines Becoming Equals and More Competitve,3. Unstable Oil Prices TS STRATEGIES1. Develop Loyalty Program enabling Cruises to be Attractive Without Deep Discount (S1,S2, T1,T2)2. Long Term Contracting for Essential Supplies (S1,S2,T4)3. Offer Multi Cruise Discounts for Booking 2 or More Cruises a Year WT STRATEGIES1. Use Low Break Even Cost to Offer Extra Value to Passengers Such As Extra days, Extra Services (W4,T1,T2)2. Develop Comprehensive Acquisition Strategy to Take Advantage of Competitoors Weaknesses (W4,W3,W2,W1,T1,)3. Look to Develop Small Capacity Cruise Line (W2,T1,T4)4. Sell Westours (W5)