As
explained by Hansen and Smith strategic planning is often making choices that
risk resources and settlements that often sacrifice opportunities

Combination
strategy can be risky for organization with limited resources as it causes
excessive indebtedness However, Royal Caribbean ltd being diversified company
employed combination strategy including product development and related
diversification, as its different cruise lines peruse different alternative
strategy based on their position in the market Both product development and
related diversification strategy fall in different hemisphere, product
development being an intensive strategy and related diversification being and
diversification strategy

Additional competition in the tours and
activities space is not necessarily a bad thing, according to Barry Karp,
co-owner of Shore Trips, a Milwaukee-based shore excursion company with which
GoBe will compete

 

Scanning
external environment:

External
forces namely economic, demographic, legal and competitive forces reveals key
opportunities that will benefit the organization and threats confronting the
firm Change in these forces decodes the changing demand of customers which will
than affect the type of intensive strategy chosen, nature of market positioning
and choice of diversification (related or unrelated)

Economic
factor

A sum of
27 new ships are on arrange for conveyance through 2013 in the journey business,
four of which are RCL ships. The current overall monetary condition has
prompted bring down voyage costs and lower locally available buys, all of which
have unfavorably influenced incomes The further development in limit from these
new ships, without an expansion in the journey business’ offer of the excursion
advertise, could additionally discourage journey costs and aggravate the
capacity to accomplish yield change (Cruise Industry Wire, 2010)

After
auditing the external environment, key strategies can be formulated taking
advantage of opportunities and avoiding threats that are identified These
opportunities and threats enables executives to have clear design of strategy
to achieve established long term objective  

Case analysis