...Case Study Title: “Carnival Cruise Lines” Program MSC HTM 544: Strategic Management for Travel and Tourism Business Instructor Name: Professor: Ada Lo Student Name: Zheng Chen Jerry 1 Jerry, (Zheng Chen) 鄭晨 13105284g Table of Content Vision ＆ Mission ＆ Goals ＆ Strategies ....................................... 3 Vision of Carnival ........................................................................................... 3 Mission Statement of Carnival ........................................................................ 3 Strategies being pursued by Carnival .............................................................. 3 Its Long-term Goals ......................................................................................... 3 Congruence of Mission, vision, goals, strategy and business model of Carnival............................................................................................................ 4 An internal factor analysis summary .......................................................... 5 External factor analysis summary ............................................................... 6 Strategic Groups within the Cruise industry ................................................ 7 Facing Issues and Solutions .............................................................................. 8 Issues............................................................................................................
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...I. Strategic Recommendations A. Pause Strategy (CI#1, 2, 3): Carnival Corp has been known for health and safety records, a key component in consumer decision-making in the cruise industry. In order to begin improvements, a pause strategy needs to be utilized to allow the company to take a step back from aggressive growth and focus more towards consumer necessities. Many complaints stem from issues like sanitization of rooms, quality of food, and ship malfunctions. Keying in on ship maintenance, restoration, and efficiency will significantly decrease the chance of malfunctions. While implementing more stringent and attentive guidelines towards guest amenities and conditions of food storage/quality to help increase consumer appeal. Pros * Allows focus towards proactive improvement of overall health and safety environment * Opportunity to address customer complaints with effectiveness * Better consumer reports from changes * Proliferation of trust and support from consumers * Reduction of direct costs from efficiency of improvements/upgrades Cons * Overall growth will be put on hold * Hard to estimate overall initial costs of improvements * Costs associated with implementation process * Strategy is temporary; Follow-up plan must be ready B. Marketing Strategy (CI#1, 2): Carnival Corporation & PLC is a global cruise company, consisting of some of the industries most recognized brands. In order to reach the different consumer...
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...Student Scholarship The Alan Shawn Feinstein Graduate School 11-8-2010 Carnival Corporation & plc Ye Zhou Johnson & Wales University - Providence Follow this and additional works at: http://scholarsarchive.jwu.edu/mba_student Part of the Advertising and Promotion Management Commons, Business Administration, Management, and Operations Commons, Food and Beverage Management Commons, Human Resources Management Commons, International Business Commons, Marketing Commons, Other Business Commons, and the Tourism and Travel Commons Repository Citation Zhou, Ye, "Carnival Corporation & plc" (2010). MBA Student Scholarship. Paper 4. http://scholarsarchive.jwu.edu/mba_student/4 This Research Paper is brought to you for free and open access by the The Alan Shawn Feinstein Graduate School at ScholarsArchive@JWU. It has been accepted for inclusion in MBA Student Scholarship by an authorized administrator of ScholarsArchive@JWU. For more information, please contact egearing@jwu.edu[->0]. Johnson & Wales UniversIty Providence, Rhode Island Graduate School Carnival Corporation & pic A paper Submitted in Partial Fulfillment Of the Requirements for the MBA Degree Course: HOSP 6800 Ye Zhou Date 8 November, 2010 EXECUTIVE SUMMARY Corporation & pIc is a global|company and one of the|vacation| companies in the world....
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...Individual Report Case 16: Carnival Corporation & plc (2010) Carnival Corporation consists of 10 semi-autonomous cruise lines, each with its own set of concerns, strategic view, and market characteristics. In order to need to see these separate units as a whole, and make decisions based on total shareholder return and conceptualize Carnival’s diverse businesses, we employ a Growth-Share Matrix analysis. Carnival Cruise Lines was the most popular cruise line in the world leading to be a “cash cow’’ that could gain hugely profitable for Carnival in the long term. The following are Princess Cruises, Holland America Line, Costa Cruises, P&O Cruises, Cunard Line, and Ocean village that had transferred to P&O Cruises Australia, an area Carnival had forecast as having better growth potential. Carnival also had two star businesses; AIDA and Seabourn. These are potentially crucial brands to Carnival, and should be given the capital needed to grow aggressively. In the cruise business, this means adding capacity, and AIDA which was number one brand on German cruise market is getting that: 4 of the next 10 Carnival ships will be AIDA. Next was Seabourn which its cruise, The Sojourn was awarded "Best Newcomer of the Year- Silver" from the European Cruiser Association in 2010. It also was voted as "Best Small-Ship Cruise Line in the Conde Nast Traveler Readers' Choice Poll in 2008 and 2010. The line was also voted the "World's Best Small-Ship Cruise Line" in the Travel...
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...fine dining, formal atmospheres and a high degree of personal service. However this also rapidly transformed the market and brands like Carnival Cruise lines emerged. Carnival cruises is the market leader in the low-price cruise market. They strategically achieved this position by emphasizing on-board activities, and targeting a relatively younger cruiser. However, after acquiring 24 percent of the berth space in North America, it has plateaued in being able to set itself apart from its competitors. The case in question outlines key attributes that assist in determining if it wise that the brand make a lateral shift from their current low-priced market to that of a premium one. This analysis will be assessed by means of a brand strategy, possible marketing initiatives and various concepts discussed in-class. The case goes on to highlight that although Carnival Cruises is a key player in the entry level cruise business, it has room for significant improvement. As more competitors emerge, a “sea of sameness” begins to overtake the minds of potential cruisers. The author investigates the foundations of Carnival’s branding by looking at segmentation, targeting, their brand portfolio, along with the brand positioning and architecture. He goes on to highlight the various attributes that make up the cruising market and how it is affecting Carnival. Characteristics such as substitute products, buyers, new entrants and rivalries are discussed. Substitutes are posed as a challenge; many...
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...MGMT 619 Spring 2009 Carnival Corporation [pic] Team 6 Amy Clogher Jacob Griego Ted Noble David Sciortino Deepa Sethi Executive Summary Carnival Corporation is the leading cruise line company in the international cruising industry, with 11 major cruise line brands and is clearly a winning company. It controls almost 50% of the cruise line market and is a broad line provider. The company does not face any considerable challenges within its industry and has adequately responded to all threats. Although 2008 was a challenging year due to the economic crisis, Carnival posted net income for 2008 of $2.3 billion (15.9% of sales). Carnival’s strategy is to be a broad line provider with a wide scope on a large scale. Carnival maintains this strategy by focusing on cost leadership in the contemporary and bargain lines, and then differentiating in the premium and luxury lines of their product mix. Industry & Competition The cruise line industry is a moderately attractive, 3-star industry that is characterized by top incumbents capturing a majority of the economic value in the industry, high fixed costs, cost savings achieved from economies of scale, and a high degree of rivalry between the top two industry incumbents. The cruise line industry has reached the growth stage after the inflection point. It is predicted that the growth stage will be longer in the cruise line industry due to frequent product upgrades and niche enhancements that forestall...
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...Forces Scale Comments Rivalry | High | 1 | Suppliers | Moderate | 2 | Buyers | Low | 3 | Entry & Exit Barriers | Low | 4 | Substitutes | High | 5 | 1. The cruise line industry is effectively an oligopoly market, where several major cruise liners make up more than 90% of the market shares. Carnival is constantly engaged in marketing and pricing battles with these competitors, making internal rivalry central to the industry. Additionally, cruise lines have historically been subject to heavy M&A activity, and Carnival sometimes competes to acquire even more share. The cruise line industry has relatively high competitor diversity and a moderate level of product differentiation. Carnival and Royal Caribbean are each more than 3x the size of the next largest competitor. Smaller cruise lines tend to specialize in options for a particular demographic or geographic region. Carnival Corporation’s multiple brands create a competitive rivalry within the company; however, each brand caters toward a slightly different demographic or specializes in a particular market or geographic region. One additional factor increasing internal rivalry in cruising is the industry’s high exit barriers. It is difficult for a cruise liner to sell their assets and exit the industry. This increases competition within the industry somewhat, as there is inflexibility in capacity adjustment, meaning that companies will undercut...
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...CARNIVAL CORPORATION STRATEGY REPORT GRIFFIN CONSULTING GROUP Benjamin Levin Jennifer Jones Tom Slade Wednesday, April 11, 2012 2 CONTENTS Executive Summary ..................................................................................................................... 4 Company Background ................................................................................................................ 5 History ....................................................................................................................................... 5 Costa Concordia Incident .......................................................................................................... 6 Business Model and Operations Summary .......................................................................... 8 Five Forces Framework ............................................................................................................. 11 Internal Rivalry ...................................................................................................................... 11 Supplier Power ....................................................................................................................... 13 Buyer Power............................................................................................................................ 14 Entry and Exit ....................................................................................................................
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...Carnival Corporation Module 8 Assignment 2 Martha Anne Alvis Argosy University Abstract Carnival Corporation (CCL) has been examined as to the nature of the industry. This paper studies the organizational structure from the Chief Operations Officer to the crew. Looking also into the global locations and the organizational work at several sites in which CCL operates. This paper examines the flow of information and the methods of resolution. Further offering information on strengths, weaknesses, threats and opportunities in the industry this analysis offers a strategic plan in which CCL could continue to grow its international opportunities through the purchase of another cruise line. A leader in entertainment, CCL remains vigilant for the future. Continuing to seek opportunities is one way to maintain leaderaship in this industry. Carnival Corporation and Carnival PLC Carnival Cruise Lines is an American Dream come true. Started by Ted Arison, the company began operation in 1972 with a single secondhand ship, the Mardi Gras, and barely enough fuel for a one way trip from Miami to San Juan. The level of enthusiasm, Arison relied on to get his vision sailing, was barely adequate to start building the company into a full-fledged cruise line; and in two years, Carnival was still struggling. Arison remained focused on his goal and in 1974, he purchased full ownership of Carnival for $1 in cash and he assumed a debt of $5 million. Arison spent the rest of his life investing...
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...Running Head: BUSINESS MANAGEMENT Business Management PESTEL Analysis PESTEL analysis evaluates the political, economical, social, technological, environmental and legal factors impacts on the consumer buying behavior and their impacts on YouTube business or performance. Political * 1. Political instability in many countries * 2. Changes in current legislation 3. Policies for foreign investors4. Proper security of local and foreign firms5. Relationship between nations6. Wars and conflicts | Economical1. Home economy 2. Economy trends in overseas economies3.GDP and purchasing power of customers4. Interest/ exchange and inflation rates5. International trade and monetary issues6. Investment opportunities and trade balance | * Social1. Demographic changes including sex ratio, population density, and majority people age, etc.2. Cultural and traditional changes3. Educational and language differences4. Social safety and benefits5. Consumer attitudes and opinions on online sites6. Ethnic/religious factors | Technological1. Technological development and innovation growth2. Skilled resources3. Licensing, patentsintellectual property issues4. Adaptation of new technology5.Research & Development | Environmental1. Environmental industrial growth2. Consumer attitudes, opinions and support3. Climate and natural support 4. Business environment and media support | * Legal * 1. Improper law and legal framework related online sites. * 2. Customer protection...
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...Recommendations…………………………………………………………………...…………….4 Summary…………………………………………………………………...……………………...5 Refrences…………………………………………………………………………………………..6 Strengths The Carnival Corporation has many strengths that have helped the organization become so successful. These strengths range from brand recognition to diversity. The corporation has established a recognizable brand. The carnival cruise ships are known to be all about fun and when their name is mentioned the consumers know exactly what to expect. “ Carnival offers a range of holiday and vacation products through its diverse brand portfolio to a customer base that is varied in terms of culture, languages, and leisure-time preferences” (Carnival Corporation, 2013). The very well established brand has allowed for the corporation to grow into more than a million dollar organization. The branding has been important in becoming successful at cultural diversity because it needs to satisfy the needs of many. If this company were to lack the brand recognition it would not be capable of being so global and innovative. The method that Carnival has used to become so distinct from its other competitors is by targeting a different demographics and offering a different ambiance aboard the Carnival cruises. The corporation has an array of cruise lines such as: Carnival Cruise Line, Princess Cruises, Holland...
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...Carnival Cruise Lines: Increasing Sales Team Efficiency Through Lead Scoring and IVR Table of Contents Introduction 3 SWOT Analysis 4 Lead Scoring 7 Interactive Voice Response 8 Conclusion 9 References 11 Introduction Carnival Corporation & PLC is the world’s largest cruise ship operator, comprised of 100 cruise ships representing 10 cruise lines. The combined companies serve approximately 10 million guests per year, with sailings from ports in North America, Europe and Australia. The largest brand under the Carnival Corporation & PLC umbrella is Carnival. Headquartered in Miami, Florida, U.S.A., CCL operates 24 cruise ships and is responsible for approximately 56% of the company’s annual revenue (Carnival Corporation, 2012). Carnival Cruise Lines (Carnival) is a subsidiary of Carnival Corporation & PLC. As is the case for the cruise industry as a whole, Carnival’s bookings rely heavily upon the work of independent travel agents and agencies. The other major sources of bookings are Carnival’s team of telephone-based Personal Vacation Planners (PVPs), as well as Carnival’s website. Due to the worldwide financial crisis, increased competition within the cruise industry, and the sinking of the Costa Concordia cruise ship in January of 2012, Carnival has faced challenges in maintaining its annual revenue and sales. Since 2008, Carnival has gradually decreased its staff of PVPs, having 500 in 2008 but only 200 today (Garcia). The PVPs had...
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...With the 2004 winter holiday season in full swing, the management team at Carnival Cruise Lines had much to celebrate. More than 3 million passengers would sail with Carnival this year, an all-time high (Exhibit 1 presents passenger numbers for Carnival and the industry). Before year’s end, Carnival was set to launch the 110,000-ton, 2,974-passenger Carnival Valor, the 20th ship in the fleet (Exhibit 2). When the Carnival Liberty joined the fleet in early 2005, Carnival’s cruise capacity would lead the industry (Exhibit 3 presents cruise capacity by brand). The fortunes of Carnival Corporation and PLC, the parent company of Carnival Cruise Lines, reflected the strength of its most visible brand. Carnival Corporation was having the best year in its history, due in part to a rebound in ticket prices following recent industrywide discounting. The company authorized a $1 billion stock buy- back in the fourth quarter of 2004 and a 20% quarterly dividend increase to $0.15 per share. It would easily beat Wall Street earnings forecasts, despite a still-sluggish North American economy, higher fuel prices, the war in Iraq, and a devastating hurricane season that had disrupted operations in the company’s main Caribbean cruising waters (see Exhibit 4 for Carnival Corporation and PLC financials). Indeed, there was much fun taking place at the Miami-based headquarters of the “Fun Ships.” Nevertheless, a seasoned team of senior managers (Exhibit 5), many of whom had been with the company since...
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