Annemarie Dorota Anna Daniel

PRESENTATION FOR HOLLAND AMERICAN LINE BY:

AGENDA

Economical situation

Short term strategy and its goals

Long term strategy and its goals

Creating Competitive Advanteges

Summary

RECESSION

The financial crisis which occured on 2007 is going to affect all of the industries and bring the new strategies for companies that want

to succed.

Main questions are WHEN it will end up?HOW long the recovery will last?

1 cycle1800

2 cycle1850

3 cycle1900

4 cycle1950

Railway steel

Electrical engineering chemistry

Information technology

Petrochemicals automobiles

Steam engine cotton

5 cycle2000

6 cycle2050?

KONDRIATIEV’S CYCLE

HOW LONG RECOVERY WILL TAKE?

Stock exchange market

October 2007 9th March 2009

16th March 2009

0

200

400

600

800

1000

1200

1400

1600

18001565

676865

annual return 131%

Is it possible?

HOW RECESSION IS CHANGINGCONSUMERS’ BEHAVIOR?

Measurements:

• Consumer Confidence Index • Index of Consumer Sentiment• Decrease of households savings

WHAT CREATS PREMIUM BRANDS PRODUCTS?

Technical amendments

Extra Functions

Emotional sentiment

HOW TO SURVIVE RECESSION?

Minimalize costsRestructure organizationDrop not profitable products Invest in staff which will generate bigger

volume of salePerceive recession as an opportunity to create

advanteges

SHORT TERM STRATEGY

TOURISM

one of the most resilient and dynamic economic sector

growing contribution to GDP, in some cases over 10%

crucial role in the creation of employment

Source: World Tourism Organization

TOURISM WORLDWIDE 2020

Source: World Tourism Organization

TOURISM WORLDWIDE 2020

Source: World Tourism Organization

15 millions

25 millions2006

CRUISE INDUSTRY

2015

annual growth 6%

EUROPE CRUISE INDUSTRY

Source: G.P. Wild (International) Limited and Business Research & Economic Advisors

EUROPE CRUISE INDUSTRY

• „Europe looks today as the American market looked 15 years ago in terms of cruise interests and potential”

Robert Sharak

The Cruise Line International Association

EUROPE CRUISE INDUSTRY

• The world leader in building cruise ships

• Large proportion of its population live relatively close to the sea.

• direct cruise tourism expenditures estimated grow to €12.7 billion by 2010

EUROPE – Germany

• Decreasing unemployment rate during crisis

• almost 52% of population is confident that has necessary financial resources

• More than 56% during holidays spend money for shopping and beaty treatment

• 46% when deciding on a holiday consider value for money

EUROPE – Germany

• Environmentally friendly

The Blue Angel (Blauer Engel) a German certification for products and services that have environmentally friendly aspects.

EUROPE - Germany

Hamburg Cruise Center

• 30 million euro mega-ship berth• Accommodating ships over 300 metres• In 2009 Hamburg expects 140,000 passengers

on 90 calls

SOCIAL NETWORKING

FacebookSecond LifeLonelyPlanetNewslettersSurveys in Internet

GREEN situation

According to Bluewater Network during one week a large cruise ship generates:

• 210,000 gallons of human sewage, • 1 000 000 gallons of grey water, • 25,000 gallons of oily bilge water, up to 11,550 gallons of sewage sludge • more than 130 gallons of hazardous waste, much of

which is dumped into the ocean.

GREEN REGULATIONSClean Cruise Ship Act of 2008

• to achieve a substantial reduction in water-based pollution in the US.

• prohibit the discharge of sewage, grey water and oily bilge water within 12 nautical miles of the coast.

MARPOL Annex VI

• reduction in sulphur oxide (SOx) emissions from ships• reductions in nitrogen oxide (NOx) emissions from marine

engines

COST OF DISOBEYING THE REGULATIONS

• Carnival had to pay 18 million fine for illegal

discharges in 2002

Fuel as the biggest cost

Environmental Regulations

Gaining capacity 100 %

MAIN PROBLEMS TO FACE

Oblozenie 100 %Pricing: Trading down

How to solve all of these problems

?

LONG TERM STRATEGY

FINANCIALS OF EOSEAS

• 2 330 millions net income in 2008• Growth in revenues of 16 % for the tickets• The only company in the world that is included in both S&P 500

and FTSE 100 index

Can HAL afford it?

214,5 millions $ per solar energy ship ( 30% more than normal ship)

ADVERTISING TOOLS

ADVERTISING TOOLS

Reality Show TV

BENEFITS

Low cost of using database from social networkingReducing fix costs by spending 50 % less on fuel

Less oil prices dependence Fine avoiding from crossing the regulationsFirst mover advantageCreating new product category and trading upMaintaining premium brand

887 000

Thank You for Your time.Question session

APPENDIX SLIDES

EUROPE

European Cruise Council

• Representing the leading cruise companies operating in Europe• to promote the interests of cruise operators with the EU Institutions

in all matters of shipping policy and ship operations.• to promote cruising by the European public and encourage expansion

of the European cruise market.

European Cruise Academy

• planning, preparing and realizing Bachelor and Master Programmes for the cruise-ship industry. It is located in Rostock, Germany.

EUROPE

The yards in Finland, France, Germany and Italy are the most important suppliers to the market and currently have collectively the following shares of the world total of new orders due for completion from 2007 to 2010:

• 94% by number;• 99% by tonnage;• 99% by capacity; and• 99% by investment.

First mover disadvantages:

• Risk• Cost

First mover advantages:• Scarce resources can be preempted, e.g. occupation of prime retail

locations • The ability to register patents and trademarks that will protect the first

entrant from future competition. • Changing the economics of the market in a way that second entrants will

not have an economic justification to enter. This can cause total failure for second-movers who go to large expenses to capture a limited market.

• Early profits can be re-invested in improving the resource base. • Reputation will likely have the advantages that come from suppliers,

distributors and customers who are familiar with and loyal to their products. Second-movers tend to suffer inherently from being labeled "copy cats" and their product reputation may be unfairly questioned by the general public.

• Technological leadership• Preemption of scarce assets• Switching costs

Confidence

HOW RECESSION IS CHANGINGCONSUMERS’ BEHAVIOR?

MONETARY POLICYFED is determining

interest rate changesFISCAL POLICYe.g. tax rebate

CCI affects stock market prices

CCI

HOW RECESSION IS CHANGINGCONSUMERS’ BEHAVIOR?

ICS

Dollar Valuation Interests of Bonds

Stock market price

RECESSION

Fuel

ECONOMIC INDICATORS

ECONOMIC INDICATORS

ECONOMIC INDICATORS

ECONOMIC INDICATORS

ECONOMIC INDICATORS

ECONOMIC INDICATORS

ECONOMIC INDICATORS

DID FINANCIAL CRISIS HIT ITS BOTTOM?

Saivings

DID FINANCIAL CRISIS HIT ITS BOTTOM?

Recession in different countries

USAGermany and JapanHungaryPoland

MEDIA

MEDIA

Internet

• The cheapest medium• The fastest in implementation• The most frequently used • Global medium• According to Directorate General Enterprise and

Industry 38% of European uses to find holiday

Technical information Length: 305 Breadth: 60

Propulsion: 20,000 MW - 12,440 sq meters of sail area - 5 masts

Passenger cabins: 1,403 Passenger capacity: 3,311 Gross tonnage: 105,000

EOSEAS ADVANTAGES

- Using alternative energies for propulsion, thanks to sails mounted up on 5 masts covering 12.440 m² surface

- Using natural gas for operating a new generation of generators feeding the ship electrically and supplying for heating and cooling.

- Solar panels for feeding the ship electrically and a double skin acting as a natural air conditioning system

- Using the energy recovered from the waste treatment- Water recycling

- Optimization of hydrodynamics characteristics thanks to an air cushion under the main hull.

- Innovative propulsion system- Limitation of air emissions

- Recovery of raining waters down from the upper decks

HAL PRESENT IN EUROPE

• UK – P&O• Spain – Ibero