Carnival Cruise Lines Case Study

A pause strategy is the best initial course of action for Carnival Corporation to improve on its health standards, overall safety and public relations. This allows the corporation to consolidate its resources to take more precise action towards its critical issues. Taking a pause strategy approach the corporation can put its growth strategy on temporary hold, keying in on improving ship infrastructure and implementing better safety features. Carnival can begin by issuing more frequent maintenance and upkeep of ships, improving the diligence of sanitization of surfaces, and executing better care and handling of perishables. This strategy gives Carnival Corporation the opportunity to show progressive action towards improving overall customer health and safety. Carnival can then utilize this to apply a marketing strategy showcasing its efforts to continually keep customer wellbeing at its

Answer: Carnival should place a high priority on marketing. They can include more varied activities that should be marketed towards different lifestyles. This will attract more people who would not have considered a cruise in the past. They can offer many promotions that lower the cost of their cruise. The company can also offer a large selection of cruise options, with ports located in many countries around the world. (Source: http://www.echeat.com/essay.php?t=31046).

Top strengths that Carnival Corporation & plc has to their advantage would be their strong brand and major control of the market share. Containing a strong brand portfolio with a total of 10 well-known brands operating about 102 ships. Such brands include Carnival Cruise Lines, Holland America Line, Princess Cruises and Seabourn in North America; AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, P&O Cruises (Australia) and P&O Cruises (UK) under the Europe, Austrailia & Asia segments. Along with Holland America Princess Alaska Tour and the Canadian Yukon (Olarte, 2017). The company is also the largest cruise company in the world in terms of cruise passengers with a market share of about 47% followed by Royal Caribbean Cruises Ltd with a market share of 23% (Cederholm, 2015).

* High Capital Requirements: The capital required to start up a cruise line is one of the key factors contributing to this industry’s high barriers to entry. With the average cost of building a cruise ship rising, the amount of capital needed to start up a cruise line is estimated at one billion dollars. Therefore discouraging any new entrants into the industry.

Carnival is “The World’s Most Popular Cruise Line” with 24 “Fun Ships” operating voyages ranging from three to 16 days in length to the Bahamas, Caribbean, Mexican Riviera, Alaska, Hawaii, Canada, New England, Europe, and Bermuda. Carnival’s success is attributed to its marketing program directed towards

◦ If the asset group is tested for recoverability while it is classified as held

Cunard is facing a problem as to whether their marketing efforts should go towards tactical promotions or if they should be applied to marketing the overall brand while facing the effects of a recession.

Carnival Cruise’s, Disney Cruises and Norwegian was the only other clear competitors to RCL but in terms of subsidiaries Crystal Cruises was the only direct rival in terms of size and scale and position in the industry but in analyzing the demand increase from 1999 to 2001 a 16.7% increase in demand showed that Celebrity cruises had to maintain their position as a luxury brand to continue being a major player in the industry. The demand was strong and the competition was average, as it relates to entries to market the cruise line industry requires multiple stipulations and regulations required thus unless one of the major players mentioned above acquired a smaller cruise line to increase in operations and services Celebrity’s position was relatively strategic and smart. The competitive landscape was relatively small so quality improvement process should be the main focus during this time, they already created the process needed to offer superior service thus tweaks such as management training, career progression programs and increases in standard of performance programs would set Celebrity’s consistent quality assurance position in the industry to better

The Carnival Cruise Lines, Inc., was founded by Ted Arison in 1972. (Corporate Information) Ted ran the company until 1990 when he handed over the business to his son, Micky Arison. Micky became the CEO, and then became the Chairman. Carnival is the largest and most popular cruise line in the world, carrying more passengers than any other cruise ship. The Carnival Corporation mission statement is; “Our mission is to take the world on vacation and deliver exceptional experiences through many of the world's best-known cruise brands that cater to a variety of different geographic regions and lifestyles, all at an outstanding value unrivaled on land or at sea.” (Carnival Corporation History)

Carnival has to great awards under their belt. First cruise ship to have over one million passengers in one year and also carry five million passengers total. They currently carry over twenty cruise ships that they operate, and that number will continue to grow as long as they are

Carnival is a leader in the cruise industry and it’s highly likely that the consumers would select this company; as it is also a branded company recognizable on the market it allow the process of word of mouth that lessen the power of the consumers from their self.

Carnival has 75 ships in its fleet and is continuing to brand the company as the “fun ships”

There are nine main cruise line, these include Ambassador International, Carnival Corporation, Crystal Cruises, Disney Cruise Lines, Louis Cruises, Regent Seven Seas Cruise Lines, Royal Caribbean Cruises Ltd., Silversea Cruises and Star Cruises (Cruising). The major cruises out of these are Royal Caribbean and Carnival Corporation. These cruises line are known for using their popularity to their advantage by raising their prices at any given time. But on the other hand, all the ships are comparable. All passage can anticipate the equivalent experience on board. In addition Rivalry is at a peek because getting rid of a cruise industry cost more than to just keep into development.

Carnival also minimizes staffing costs by sourcing employees on a global basis. The employees are a key element to ensuring excellent customer service on the boats, therefore, customers will return satisfied.

Carnival Cruise Lines is one of the most successful cruise lines in the world. They have taken an industry that once only catered to the elite and turned it into a possibility for people of varying economic means all over the world. In their quest to provide a service with mass appeal, Carnival has become the very definition of international business.