Executive Summary Norwegian Cruise Line (NCL) is rapidly becoming one of the best cruise lines in the industry. It has a strong financial position due to the 1Billion dollar cash equity investment made in the company by the private equity group Apollo Management. The company was started by Knut Kloster in 1966 under the name Kloster’s Rederi, which is one of Norway’s oldest shipping firms.
This is a global company based in Miami, Florida but is considered a Bermuda Corporation with subsidiaries in Bermuda, Finland, and the Bahamas. NCL’s mission is to have the youngest fleet in the industry and to seek vacationers by pioneering new products and services. They are the first in the cruise industry to offer a new style of cruising called “Freestyle Cruising”, which lets guests choose when and where they want to eat with no formal attire required.
They are also the first in the industry to offer garden villas aboard their ships with personal butlers and staff. NCL has persevered and continued with its shipbuilding program. NCL currently operates 13 ships with 2 new ships on order which will be the two biggest ships in the industry having over 150,000 in tonnage and will accommodate over 4,200 passengers (www. cruisecritic. com/reviews).
All the staterooms will have balconies which is a first for big-ships in the cruise industry. The new ships design will offer 60 percent more passenger space than the largest ships built so far by NCL. Because of these improvements, NCL has secured brand loyalty, established absolute cost advantage, and remained competitive with other cruise lines. NCL has succeeded in attaining its competitive advantage through efficiency, quality, innovation, and customer service.