Case Type: Pricing Strategy
Case Style: Candidate Led
Industry: Consumer Services
Case Type: Pricing Strategy
Industry:Consumer Services
CASE BY IBM Global Services
Norwegian Cruise Line (NCL), also known in short as Norwegian, is a cruise line founded in 1966 and incorporated in Bermuda. It is the third-largest cruise line in the world by passengers, controlling about 8.7% of the total worldwide share of the cruise market by passengers as of 2018. It is wholly owned by parent company Norwegian Cruise Line Holdings. Norwegian Cruise Line (NCL) is planning to introduce wireless Internet services on its international cruise ship routes for its customers to access and wants to know at what price they should deploy this service on its Cruise Ships.
Assume, there is only one vendor available in the market that provides a new technology that allows wireless Internet over water. The client Norwegian Cruise Lines wants to know at what price they should deploy this service on its Cruise Ships.
Please note that the internet communication on water is very different than on land where we have antennas installed all over to support the connectivity. Communication over water happens directly via satellite and technology used to do so is called VSAT.
Additional information (To be provided only on request)
- One time equipment & installation cost would be around $1 mn per ship. Thereafter, user needs to pay $5 per user per hour to the service provider
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