...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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...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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...Justification Report Name Course Tutor Date Justification report Assignment 2.1- Justification Report(Part 1) Problem statement The main problem that employees face in Carnival Cruise Line Company is a hostile environment. This hostile environment in Carnival Cruise Line Company is also a form of harassment. A good number of other employees in Carnival Cruise Line Company normally think that issues that bring about the hostile environment in the workplace include; bosses who are irresponsible, rude coworkers, privileges, benefits, the lack of perks, work environment that is unpleasant and even recognition. In most cases, to consider the workplace hostile, some lawful standards and policies are supposed to be met. The creation of this hostility in the work environment is mostly done by the boss or a colleague whose behavior, actions, and communications makes it impossible to perform the responsibilities of the workplace or the organization. With the traits portrayed by the coworkers and the employers, it can be concluded that he traits are responsible for changing the terms and conditions or the anticipations of the conducive and comfortable work environment for all employees. Moreover, in order for a work environment to be considered hostile, the traits and actions should show unfairness. An example is where an employee posts nude images or says sexual and explicit jokes is termed as guilty of harassing a fellow employee sexually (Mann & Goodman 2008)....
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...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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...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 + Leisure...
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...Carnival Cruise Crisis Management Carnival Corporation operates as a cruise and vacation company worldwide. Its stock is listed on the New York Stock Exchange. Carnival has a portfolio of the world most widely recognized cruise brands. One of these brands is Carnival Cruise Lines, which is the most popular cruise brand in North America and operates 24 ships designed to foster exceptionally fun and memorable vacation experiences at an outstanding value. In this paper, I focus on a crisis of Carnival Cruise Lines, which happened in 2013, and I will also give an analysis about how Carnival handled the crisis. In addition, I will give my own suggestions to this crisis management. Introduction of the crisis On February 7, 2013, the Triumph, one of Carnival’s ships, left Galveston, Texas, with 3143 passengers and 1086 crew aboard for a cruise, which was supposed to last 4 days. However, on February10, a fire broke out in an engine room on the Carnival Triumph, which was sailing in the Gulf of Mexico. The blaze was extinguished quickly and no one was injured, but propulsion systems were knocked out. Although the ship had two engine rooms, shared cabling between the two was damaged by fire, leaving only emergency backup power available. Triumph floated helplessly until the ship was towed back to Mobile, Alabama on February 15, which means Passengers had spent five uncomfortable days on the Triumph. The last five days for the people on Triumph were suffering because of limited water...
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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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...Key Points The birth of the modern cruise industry can be dated back to the 1960s. With the Airline industry taking off, shipping companies began to reposition themselves as providers of transportation to that of vacation travel. As the means of travel changed, so did its consumer base. Cruising was dominated by brands that served a more affluent customer base, providing 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...
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...Carnival Cruise Lines Crisis Communication Analysis This analysis will outline details of a major event that affected one of the biggest cruise companies in America. Carnival Cruise Lines, is world renowned as “the Fun Ship” to families far and wide. They’re mission states: “Our mission is to take the world on vacation and deliver exceptional experiences through many of the world's best-known cruise brands that cater to a variety of different geographic regions and lifestyles, all at an outstanding value unrivaled on land or at sea.” It is by this statement, that many guests come aboard their broad array of cruise line carriers. They have a ship for every budget! The Carnival Corporation umbrella holds within itself several other well known cruise lines such as, AIDA, Carnival Cruise Lines, Costa, Cunard, Holland America, Princess Cruises, P&O Cruises Australia, P&O Cruises UK and Seabourn. They are also on the brink of establishing a domestic cruise line with China. This great company was founded by Ted Arison, and has grown over time and has become Carnival Corporation & PLC. As with many great companies, “there will always be some sort of crisis” as Jack Welch states in Chapter ten of his book Winning (Winning, 2005). Unfortunately, it was no different for Carnival. While there have been several crises that took place in this organization, dating back to 1998, the one we will be discussing and analyzing directly is the Carnival Triumph disaster from...
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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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...The Carnival Cruise Lines case focuses on how Carnival Cruise Lines should strategically exploit enterprise systems and available customer data to perpetuate its success. Specifically, it focuses on the role that Customer Relationship Management (CRM) can play in organizational strategy. Case Questions: 1) Highlight the key characteristics of Carnival Cruises' competitive environment (e.g., major competitors, market position, customers and distribution channels, threat of new entrants, threat of product substitutes)? 2) Describe the IT infrastructure (consider Weill’s article) at Carnival Cruise Lines and the role (current & potential) it plays supporting processes, people and strategy. Given Carnival’s IT infrastructure, are they ready/capable to introduce enterprise systems (CRM in this case). 3) How did Carnival’s management build the line into the dominant brand in the industry? Consider how this approach/strategy relates to CRM? 4) Describe what CRM means to Carnival’s different levels/ages of management (e.g., Dickerson and old guard vs. Newer Management)? Why the different perspectives? 5) Based on your assessment, should Carnival do “CRM”? What should CRM look like at Carnival? Explain your position. 6) How would you go about implementing your strategy at Carnival? What would it take to deliver on your recommendations? Carnival Cruise Lines Case 1. How did CCL’s management build the line into the dominant brand in the...
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...Carnival Cruise Lines: Exploiting a Sea of Global Opportunity International business 13th ed. Summary: This case describes the history of the cruise industry and defines it, then it talks about the current state of the Cruise industry, then it goes on to discusses the business in international waters, after that it states the main points in Carnival Cruise Line operations, finally it argues the overseas environment. SWOT Analysis: Strengths: 1. Carnival cruise lines is one of three major companies that has the share of 91% of the market and it is the largest of all three. 2. That being said it is very strong financially. 3. The financial strengths of carnival cruise line generates international connections that will be very helpful in this line of business. 4. Another point resulting from the financial strengths is the ability to cover their customers geographically being based in different countries. 5. The ability to target different segments hence it has different cruises with different costs. Threats: 1. The health problem that faced them in 2006 where a virus hit the cruise caused bad publicity which causes carnival to take the infected ship out of service which caused financial losses. 2. Any health epidemics causes carnival to avoid ports of the country infected which also can cause financial losses. 3. The weather causes a major threat which normally forces the company to cancel the trip...
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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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...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 example, brand awareness. Moreover the company can adapt the proposed scenario for entering new markets in the future. 2|Page Table of Contents Abstract ...................................................................................................................................... 2 Introduction ................................................................................................................................ 4 Situation Analysis ...................................................................................................................... 5 Strategic Direction ..................................................................................................................... 6 Formulating a strategy ..............................................
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