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
In the commercial created by the CDC “Terrie’s ad” a woman is in a hospital bed speaking against smoking cigarettes. Her voice is very difficult to understand, her skin has detrimentally changed, and the imagery portrayed is very disturbing to the audience. Terrie claims she started smoking as a teenager, and it is eventually released that she dies at the age of fifty-three from cancer. The purpose of this commercial is to stop people from smoking, ideally before they start. To reach this goal the creators of the video utilize multiple rhetorical appeals in an attempt to get across to the audience.
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
Carnival Corporation & plc is a global contender with the title of the world’s largest cruise and leisure travel company. The goal of this assessment is to analyze the strengths and weaknesses with the financial ratio analysis of the company along with conducting an internal factor evaluation matrix to view the status of the company in comparison with their top competitor, Royal Caribbean Cruises Ltd.
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.
a) It is advisable to manage than to own as it is consistent with the growth strategy. In this manner, mar riot can attract additional capital that gives it an opportunity to even invest more in the future, share the risks with limited partners. The partnership can be of great benefit as it is a good way of saving on taxes.
Throughout the history of the American presidential elections there has never been an election that is being dread this much. The choices for the election are Hillary Clinton and Donald Trump. Hillary Clinton has spent years in politics, and has held both the position Secretary of State and First Lady. She is well known for the federal investigation into her and the corruption of the Clinton Foundation. Trump on the other hand, is a very successful businessman and is worth billions. He has never been in politics and it shows when he makes rude comments. Recently, he has been accused of rape and sexual harassment.
Carnival’s value proposition was to be a cheaper alternative to land vacations at all inclusive resorts while providing a variety of activities and destinations in one trip. Carnival was the “fun ship”, providing contemporary vacationing to first-time and repeat cruisers. Because customer retention is low, Carnival uses a more traditional style of marketing, focusing on the short-term customer.
* 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.
Answer: The threats that exist for the future performance of the cruise –line industry and, specifically, of Carnival Cruise Lines are-
209AMG Tourism Marketing 1 Cruise Marketing Strategies of Carnival Cruise Lines and Thomas TUI Monisha Chauhan 3093632
The global cruise industry continues to be the fastest growing travel sector in the world with strong consumer attention and substantial cruise line investment in a diversity of mind-blowing ships that travel to the most exotic locations in the world and offer exceptional vacation experiences.
Carnival Cruise Lines is the largest cruise company in North America and carries more than 60,000 passengers a week. The Carnival experience is the standard against what past cruisers judge their later cruise experiences. Carnival has captured the "fun" psychographic and has a strong reputation for an enjoyable, relaxed cruise. Furthermore, Carnival has a strong market expansion strategy for selling the mass-market cruise category and first-time cruisers. They have a clear vision and knowledge about the industry and a commitment to their brand essence, which is fun. Also, as an extension to their branding of the "fun" ships they are the low-price leaders. Because of their strong brand image they are able to achieve double-digit growth in
There were not many jobs women could have in britain during the early and mid 1800’s. However, late in the decade women started to try to get jobs and break their stereotype as the weaker gender. They had to slowly change the social mores around women by slowly so that men would not try keep women from advancing. Thomas Hardy brought this into consideration when he wrote Far from the madding Crowd. Women In the late 1800’s Women began to challenge some of the social mores that bound them to society while keeping others ridged Bathsheba is a representation of this movement.
The economic climate has a strong impact on the cruise line industry. However, the cruise line industry is growing and more people are traveling today then ever before. As welfare of people has considerably grown despite all possible crises in world economy, anyhow many economic factors are influence to cruise line industry, such as clientele's economic positions, growth in markets, currencies rates when working international and inflation plays a role. Operators of a cruise will be affected under management and operational levels. If fuel price begins to increase, then it will influence operational costs of the company. If interest rates increase then, then it will influence the income of the company. Economic factor plays a major role for the company to be afloat of cruise industry.
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