Strategic analysis of a port authority's cruise ship business

This paper is a strategic analysis of a port authority's cruise ship homeport business and aims to analyse the effect of recent changes in the North American cruise industry on the port authority. An industry analysis is conducted to identify key success factors to succeed in the cruise ship homeport business and specifically identifies the challenges of competing in a marketplace where the primary motivation to grow the business is based on economic benefit to the local community rather than to the port authority itself. The paper identifies the difficulties of rivalry when it leads to both ports considering expansion when both would be better off not to expand. A cooperative strategy is explored to determine opportunities and threats for the port authority in relation to management preferences, resource limitations and organizational capabilities. The paper concludes with recommendations on how to proceed with a cooperative strategy to benefit both ports.