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Carnival Harvard Case

In: Business and Management

Submitted By atrezza
Words 1537
Pages 7
Alicia Trezza
Zak Jones

Carnival Cruise Lines
1. Conduct a SWOT analysis for Carnival: what are its strengths, weaknesses, opportunities and threats? In doing so, please evaluate its major competitors.
Strengths
- Carnival has 75 ships in its fleet and is continuing to brand the company as the “fun ships”
- There are large barriers of entry into the cruise businesses. Ships are extremely costly and time consuming to build.
- Carnival cruises provide a vacation that includes all activities, food, beverages and transportation to multiple destinations in one low price, appealing the budget friendly cruisers.
- Carnival builds it ships specifically for entertainment and fun, the most important factors people are looking for when booking a vacation.
- Carnival markets to all travel agents. With a variety of cruise ship offerings, Carnival has vacations that appeal to a variety of demographics, budgets and niches.
- Carnival has ample opportunity during each cruise for ancillary revenues. Even through the cruises are “all-inclusive”, Carnival charges for short off boat excursions, casino play, and alcohol.
- Ships almost always sailed full and satisfaction rates were extremely high.
Weaknesses
- Past issues, such as one ship hitting a sandbar on the first voyage leave lingering impressions on vacationers.
- Customer loyalty is low. It appears customers are only willing to take 1-2 cruise vacations in a few year spans, despite Carnival’s high satisfaction ratings.
- 85% of bookings come from travel agencies. While a vital external sales force, these travel agencies are expensive and take profits away from Carnival.
- Carnival’s IT deployment was not a competitive IT agenda for the industry or an innovator. As technology becomes more important and vacationers expect to be connected while on board, this will become more of an issue.
- Up to 2001, Carnival…...

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