Carnival Cruise Lines: Exploiting a Sea of Global Opportunity

1093 Words Aug 26th, 2014 5 Pages
Question 1,2,5 in International Business Environments and Operations, Fifteenth Edition

Carnival Cruise Lines: Exploiting a Sea of Global Opportunity.

Summary: The case has given us the definition of Cruise, as well as the history of Cruise. Nowadays, there are 2 biggest companies: Carnival and Royal Caribbean nominated the Cruise Industry with total of 72% of the market. By far, Carnival is the bigger than Royal Caribbean. Furthermore, the case goes deeper about the company – Carnival; for example; history, business background and business potential of Carnival. Carnival has done very well In International Water. Company has flags of convenience of about 30 different countries. Legally, Carnival is a Panamanian company, even though
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Therefore, Carnival still can have revenues of developed countries but pay taxes of developing countries. Another income which Carnival can eliminate is port fees, thank for its global system. Secondly, Carnival has a lot of markets. With registration of 30 flags, and many brand located in different countries, the number of ticket sold every month is usually high. Thirdly, because of its global system, Carnival can minimize some threats such as the weather. For example: the liner makes a route from New York to Belgium but unfortunately, it meets a storm near Belgium. Thank for its system, the liner can change the route to visit Holland (if without that system, it will be very high cost for changing route). Fourthly, the outsourcing is utilized. There are about 100 nationalities of crew member in Carnival, but mostly they are Filipinos because they can speak English fluently and very cheap labor. Fifthly, Carnival can have cheaper repair in port and also easier to buy components for replacement while repair. 2. What specific steps has Carnival Cruise Lines taken to benefit from global social changes?
At first, let us talk about the history of Carnival Cruise Lines. “Carnival was born when a former partner in Norwegian Cruise Lines saw an opportunity to expand mass-market sea travel by promoting the idea of the “Fun Ship” vacation”. Yes, they have seen the opportunity of International Water and
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