Carnival Cruise Lines Essay

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Carnival Cruise Lines: Exploring a Sea of Global Opportunity

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. The cruise line industry has seen a substantial amount of growth in the last fifty years. Several global forces have contributed to this growth. There are two types of global forces: controllable and uncontrollable (Ball, Geringer, Minor, & McNett, 2010). Uncontrollable forces, also known as external forces, are
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These two benefits alone save the cruise line immense amounts of money. Since they are not US companies, they are not bound by the laws other US businesses are such as employment taxes and minimum wage for their employees (Cruise Line International Association, 2012). They are also not subject to corporate income taxes, however they still must pay the going port fee whenever their ship docks. Another financial benefit stems from the building of their ships. Many times, the country in which the ship is being built will donate millions of dollars to the project tin order to facilitate jobs. This is a huge savings to the cruise line industry and helps maintain their costs.
The final uncontrollable force affecting the cruise line industry is competition (Montalvo, 2007). This is probably the least influential force since 91% of the cruise line industry is made up of three companies-Carnival, Royal Caribbean, and Star. These three organizations are world-famous and have developed the cruise concept to the point that there is a cruise that will fit just about every person’s destination dream and budget reality.
Global social changes have also affected the way that Carnival Cruise Lines operates as well. As the global economy turns downward, the cruise industry continues to thrive (Global Demand for Vacation Cruises to Surge, 2012). This is due in part to the changes that they cruise lines have made. Cruises are now marketed as “get-aways from
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