Corporate Growth Strategy

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Carnival Corporation Growth Strategy Academic Report on Strategic Management by Diana Romanova 100878 Strategy & Communication EHM3.SC-02 December 10, 2012 Abstract The purpose of the report is to discuss the current strategy of the Carnival Corporation, the world leader in the cruise industry. Based on the external and internal situation analysis the new growth strategy is formulated. The recommendations on the strategy implementation and evaluation are provided by terms of the various strategic theories and models. The projected internationalization strategy may result in the improvement of the financial business situation, by increasing the corporation’s profit margins and shareholder value, and non-financial indicators, for…show more content…
4|Page Further in the report I discuss the possibilities for the future growth of the company; risks and complications. My suggestions are based on the environmental scanning and situation analysis. Finally I make recommendations on the growth strategy implementation in order to maintain leading position in the market. Situation Analysis Cruise Line industry is very complex; it is a combination of tourism, passenger carrier and hotel business, and affected by many external events. Thus for the macro-environment analysis DEPEST model was used which had shown that changes in the economic, social, demographic and technological environment are influencing the industry the most. The credit crunch strongly affected the industry. Even though USA remains the main market (62.5% according to the Cruise Market Watch), due to the recession consumers significantly downgraded or cancelled their vacation budgets. However, the opportunity can be found in the economy shift from West to East with the focus on the emerging countries (BRIC). There is a shift in social values and attitudes towards the
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