Viking River Cruises Inc.: Cruising to New Markets

Led by iconoclastic founder and chief executive officer Torstein Hagen, Viking River Cruises, Inc. (Viking) had revolutionized river cruising and established a leading market share in that segment of the cruise travel industry. In 2022, the firm chose to enter the fast-growing expedition segment of the industry with two newly constructed ships. It faced a critical strategic question: could Viking’s proven formula in river and ocean cruising convey a competitive advantage in the expedition segment as well? Viking had to decide how to position itself in this segment and whether to scale up quickly in advance of projected demand growth.

This case fits appropriately in courses on competitive strategy as well as integrated capstone courses in a business administration curriculum. Instructors may teach the case in undergraduate, graduate, and executive education programs. After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>Analyze the economic structure of an industry and identify the forces affecting the profitability of competitors in the market.</li><li>Identify the sources of competitive advantage for a successful firm and evaluate whether that advantage will travel to a new high-growth segment within the same industry.</li><li>Recognize the value of making trade-offs when establishing a competitive position.</li><li>Evaluate whether a firm’s choices may have enabled it to simultaneously raise consumers’ willingness to pay and lower costs, thereby achieving a dual advantage.</li><li>Examine how firms pursuing niche strategies can thrive in an industry where substantial economies of scale exist.</li><li>Conduct a break-even analysis for a significant investment in additional capacity and analyze the implications of investing aggressively in new capacity in anticipation of future customer demand.</li></ul>

• industry analysis, competitive advantage