Background
The Royal Caribbean Cruises Ltd (RCCL) is one of the three major players of the global cruiseline
industry. It specializes cruise routes mainly in the Caribbean but also around the globe. The
two brands that the company operates (Royal Caribbean International and Celebrity Cruises)
serve slightly different market segments, but compared to its competitiors, both offer better
quality and enhanced customer experience at higher price.
Issues
The cruise-line industry is competitive, fast-changing and characterized by uncertainty. Just like
its competitors, RCCL have been facing a few challenges (see below), especially after the 9/11
incidence in 2001. The key decisions that RCCL needs to make at present are: how aggressive
(how fast and how much) should the company invest in IT innovation (specifically, the
implementation of the Leapfrog Project), and how to ensure such decisions align with company’s
objectives.
Analysis
As mentioned previously, RCCL is facing a few challenges (both intrinsic and extrinsic)
common to this competitive industry. These challenges include: decreased number of travellers
after the 9/11 incidence, a generallly depressed economy, prevalence of SARS and Norwalk
virus scares, geopolitical uncertainties, last-minute booking of clients, and general price-cut
across industry due to severe competition and increased supply. All these factors forced the
company to cut costs and adopt strategy that improves efficiency and competitiveness: enhancing
customer experience, reducing costs, and increasing revenues. While numerous projects are
currently underway, a key question pertaining to IT is whether the Leapfrog Project should be
reinstated. And if the answer is affirmative, then ho ...