...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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...Jessie Carpenter Professor Merrie Marks MGMT500.2 Principles of Management 21 September 2013 Case Analysis: Micky Arison and the Costa Concordia Tragedy The former CEO of Carnival Corp. faced one of his biggest challenges when the Costa Concordia cruise ship began to sink off the Italian coast in January 2012. His actions at the time caused a bit of hype in the public eye. People wondered why Micky Arison wasn’t taking a more public role during the incident. From across the seas Mr. Arison expressed his condolences to victims via Twitter and in company news releases. He also gave his personal assurance that Carnival would take care of the passengers, crew and the victims and announced a comprehensive safety audit (Kinicky, Williams 92). Mr. Arison is known to be a big delegator. His management style is relatively less involved with the operating decisions of the multiple cruise lines named under Carnival Corporation. When the cruise ship crisis was reported he chose to stay in Miami and leave the immediate response decisions to the executives of that division as to avoid becoming a distraction in Italy (“Arison on Costa”). While another of the cruise ships under his domain was stranded at sea with diminishing resources Arison was publicly seen attending a Miami basketball game (Young). He was criticized for that seemingly negligent behavior as well. After stepping down from his position as CEO a year later, he went on to say that he would be taking an even less hands-on...
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...what amenities and attractions are offered and the infrastructure that the country is currently using and what is needed to improve, advance, and boost tourism. I will also examine hotels, amount of rooms, restaurants, and new development. I will conclude by going over new developments that the country needs in order to prepare for future tourism. Discussion Barbados is an island that sits between the North Atlantic Ocean and the Caribbean Sea. There are beaches on every coast because there are no land boundaries. People travel to the island for many reasons including relaxing, getting married, honeymoons, hiking, diving, surfing, and golfing to name a few. Barbados is also a port for many cruise ships so they get an influx of visitors for shopping, dining, etc. when the ships dock. Barbados is very family oriented and all children are welcome to join in the festivities. They also have craft and pottery centers, historic plantations and lighthouses, monuments and statues like Independence Arch and Lion at Gun Hill, museums such as the Hutson Sugar Museum and The Barbados Museum, natural / eco attractions, religious buildings and churches, rum distilleries, scenic places including safari tours, and sports facilities to entertain travelers & visitors. (http://barbados.org/points.htm) This destination has many different attractions and amenities to offer newcomers and returning guests. Barbados has a growing infrastructure system. They have about 980 miles of roads...
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...Communications 101 Manny Diaz Cruise Vacation or a Resort Vacation? Some people argue by asking the question, which is a better vacation? Is it a cruise vacation or an all- inclusive resort vacation? There are a lot of things that play a part in which is a better vacation; anything from food, activities, age of people to the price. My wife and I have taken both of these vacations in the past 12 months and will try to share our likes and dislikes. Some of the highlights are the same. They both have lots and lots of food. They both are full of fun with plenty to do and if you get bored, I would consider the experience your own fault. Our first cruise experience came with the opportunity to spend it with six other friends back in May of 2008. Carnival was the one we choose because people refer to it as a party boat (Cruise mates). If a person is looking for more of a party atmosphere, go with carnival. That is what we did and the reviews were correct. For a younger crowd; go in the spring or fall and for fewer days because kids are in school. Our first resort was nine days in Jamaica at an all inclusive Sandals Resort. The time was March 20th 2009 which was our honey moon. What makes Sandals the best place to spend your vacation, there is eight other locations over the island. People stayed at the less expensive location and played at all the rest which is included in the price. While everything is included in the price for the cruise; the drinks were extra. They offered...
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...been in the cruise and steamship business since its founding in 1840. It was a widely considered to be the last of the great steamship lines, and ad successfully adapted to the contemporary marketplace. Prior to the advent of jet travel, the firm had been an important worldwide provider of travel services, particularly between Europe and North America. The growth of convenient airplane service on international routes had changed the basic character of its business. Cunard now was in the “luxury vacation business. Customers were treated to a wide variety of activities, and entertainment and sumptuous food while they were at sea. The appeal to the user was to experience luxury and fun while cruising amount interesting vacation-oriented ports. Cunard offered cruising on seven ships. Five of them were in the luxury (5 star) category, and two were in the premium (4 star) category. Each had its own distinctive image and positioning: The first of the cruise ships was considered to be the finest in the world it was called the QE 2. It offered ultra- luxury accommodations and exquisite service. In addition to traveling between New York and Europe it was used in the Caribbean and made one round the world trip each year. The QE 2 had a capacity of 1,850 passengers. The Ultra Deluxe was the Sagafjord and Vista fjord were five start cruisers. They ported primarily out of American ports for cruising in the Caribbean, Alaska and the south Pacific. The capacity for these ships was approximately...
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...Carnival Cruise Lines: Exploiting a Sea of Global Opportunity I must go down to the seas again, for the call of the running tide Is a wild call and a clear call that may not be denied –– John Masefield, The Seekers I n recent years, the call of the sea has spurred the cruise business. Sea voyage, of course, have had an aura of mystique for centuries, but only in recent decades has the experience of the open sea and exotic ports of call been available to mass market. Historically, the recreational sea voyage has been an essentially elitist endeavor. Certainly, members of the lower classes occasionally found themselves on the open sea, but usually as displaced job seekers or crew members aboard ships. In recent years, however, the cruise industry has undergone a sea of change of sorts, and demographic groups it now targets include the working middle class as well as the idle rich. What’s a Cruise, and What Happened to the Cruise Industry? A “ cruise” is a sea voyage taken for pleasure ( as opposed to, say, passage on a whaling ship, an assignment in the navy, or a ferry to get you from point A to point B). Typically, passengers enjoy cabin accommodations for the duration of a fixed itinerary that brings them back to their original point of embarkation. There was a time when ships (called passenger liners) transported a certain class of people across oceans and seas for business or pleasure, but the advent of transoceanic air service after World War II offered a speedier...
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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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...Table of Contents Executive Summary…………………………………………………………………………………………………………………………………3 Situation Analysis 4 Market Summary 4 Pet Industry Analysis 3 Pet Market Trend 5-5 Market Trends 5-6 Demographics 6-7 Market Psychographics 7-8 Market Needs: Cruise Travel and Pets 8 The Competitive Environment - SWOT analysis 9 Strengths 9-10 Weaknesses 10 Opportunities 11-11 Threats 12-12 Competition 12-13 Service Offering 13 Keys to Success 14 Marketing Strategy 15 Mission 16 Marketing Objectives……………………………………………………………………………………………………………………… 16-17 Financial Objectives…………………………………………………………………………………………………………………………......17 Target Market………………………………………………………………………………………………………………………………….18-19 Financial…..………………………………………………………………………………………………………………………………………19-27 Controls………………………………………………………………………………………………………………………………………………..27 Conclusion………………………………………………………………………………………………………………………………………28-29 References……………………………………………………………………………………………………………………………………..29-30 Executive Summary Furry Pet Spa & Resort is a Private Limited Company that aims to provide a world class spa for pets while owners travel with them. Since people are engaged in more travel, there is an excellent opportunity for some travelers to take their pets with them on vacations. Research now suggest that pet owners in many instances would prefer taking their pets with them, but the travel industry has been reluctant to allow pets to accompany their owners on some modes of transportation and lodging facilities...
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...We at the Carnival Cruise Line Corporation are constantly striving for perfection. In order to reach our goals, we have thought about what we need to do in unison with our partners, customers, and employees. With the hiring of our new CEO Arnold Donald, new negotiations have been made in order to increase the level of customer satisfaction. One of the aspects that we currently need to work on is expanding our cruise line to other regions and areas. The negotiation that we will be analyzing is the agreement to bring a vessel back to the port city of Mobile, Alabama (Sharp). CEO Arnold Donald of Carnival Cruise Lines is going to negotiate with Mayo Sandy Stimpson of Mobile, Alabama, in order to grant the Alabamians wish of winning a cruise ship back to their port city. The Carnival Cruise Line “is expected to visit Mobile sometime this month to announce specifics about their plans” (Sharp). However, it is not that simple and will take some time to complete the negotiations with...
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...Vacations Doris A. Davis Vacations Cruises appeal to many travelers because they are considered all-inclusive vacations. Pay one price and receive accommodations, meals, entertainment, and transportation between island and port destinations. But once onboard, many cruisers find themselves shelling out hundreds of additional dollars for shore excursions, alcoholic beverages, and gratuities. What happened to their supposedly all-inclusive vacation? Many land-based resorts also refer to themselves as all-inclusive, yet [the properties offer a different set of included amenities. As I look at the picture my mind can imagine exactly what my experience would be. So what does it really mean to be all-inclusive? I have compared the pictures of all-inclusive resort and cruises at sea I believe all-inclusive land resort vacations are the best. All-inclusive cruises and resorts tend to include different amenities in the base price. Book a mainstream cruise, and you'll receive accommodations, all meals and snacks, certain beverages at meal times, use of the ship's facilities (such as the pool, kids club, and fitness center), onboard activities and entertainment, and transportation between ports-of-call. You will have to pay extra for soft drinks and alcoholic beverages, tips for a waiter, spa treatments, shore excursions, airfare, and airport transfers. Luxury liners may include tips for the waiter and alcohol in their base price. On the other hand, book an all-inclusive resort package...
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...Specific Purpose Sentence: To persuade my listeners to go on a cruise for vacation. Central Idea: Cruising is affordable and there is something for every age to do. Introduction: Summer is coming up and I know all of you guys cannot wait to have a fun vacation. I mean school is out, the weather is beautiful, and you get days off from work to relax. So you don’t care where you go just as long as you are out of Palm Coast. Some people go visit family in other states, some fly around the U.S, and some people just go to another city in Florida. As for me, you will find me having a blast on a huge water hotel sailing through the big blue sea waves and feeling the warmth of the sun and waiting to see a new part of the world. Preview Sentence: Today I will try to talk you into the beautiful idea of cruising. Body: One of the most popular ways to travel is by cruise ships. By cruising, you have time to relax and have fun at the same time. Passenger cruise liners are meant exclusively for recreational purposes and it is commonly known across the world. More and more people are discovering the fun and value of going on cruise, especially that luxury cruise is now more affordable and easily accessible to everyone. According to Travel Authority, Howard Hillman, “There are more than 300 sea-going cruise ships in the world. They can collectively accommodate over 300,000 passengers per day.” Cruising is really the best way to travel. Not only is it affordable, it offers a variety of...
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...day stresses and schedule conflicts. A luxury cruise can offer all these things and much more. Personally experiencing what a luxury cruise has to offer, I can guarantee a cost worthy, indulgent and memorable experience. The most enjoyable vacation I’ve experienced was a luxury cruise .Over the span of 4 days I was able to travel from Miami, Fl all the way to Conzumel , Mexico. Having experienced such a wonderful vacation in a short four day cruise, I would like to propose a long, luxurious, and romantic fourteen night cruise for our family of two. This ultimate dream vacation would take us from the Gulf of Mexico, to the Bahamas and everywhere in between. This dream vacation is well worth the price. Having your hotel, restaurant, entertainment, and transportation all in one place makes for a very relaxation experience. Whereas other vacation hot spots may have you running around and wasting your vacation time. The cost of the fair pays for all the gourmet food you will be having and allows twenty four hour room service. Taking a luxury cruise, allows for a very indulgent vacation. You can indulge in food, sightseeing, entertainment or spa treatments all on board the cruise ship. When reaching destinations, every port has something fun and exciting to do! For example, when I was in Mexico on my cruise, I took a taxi to an all-inclusive resort and had lunch, snorkeling in perfect crystal clear water, followed by an open bar! Best part of this was the cost of the resort was just...
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...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. -...
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...discussed. The three news networks chosen for this paper are BBC, CBS, and CNN. A Costa Concordia cruise ship capsized near Giglio, Italy on January 13, 2012. Today, January 28th, divers continue to seek out missing passengers, charges are being filed against the ship’s captain, and lawsuits on behalf of passengers and crew are mounting. BBC News Network (January 28, 2012 – Giglio, Italy) According to a BBC (2012) reporter, the body of a woman has been found in the capsized ship, Costa Concordia, bringing the known death count to 12. The woman was wearing a life jacket and located on the fourth deck. Out of 4,200 people, including passengers and crew, twenty people have not been accounted for. Captain of the ship, Francesco Schettino (or Capt. Coward, as he has been dubbed by the media), is being investigated for manslaughter on the legal level and for abandoning ship on moral and ethical issues. The female body found today was located in an area near the rear of the ship designated as an evacuation meeting point. DNA will be used to identify the woman after a full week in the water. A rescue official stated they would not terminate the rescue mission until every area of the ship had been thoroughly searched. The Italian government worries there may be a fuel leak, but collection of the fuel cannot be activated until rescue workers have completed their search. An Italian naval ship is standing by in the event of an oil leak. On...
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...the disaster area. This paper also reveals how disaster management influences the management style and process. This paper also recognises lessons that can be learnt to minimise the consequences that occurred. Causes, Triggers and Drivers In a disaster, there are number of causes, triggers and drivers for a specific chaos to happen. In Costa Concordia’s issue the main cause of this was the ship hitting a sandbar with a huge rock on Friday evening near the island of Giglio in Italy (Westcott, 2012). This cause was triggered by the captain of the ship have sailed to close to land as this was an unapproved and unauthorised deviation in course (Johnston, 2012) and the captain confessed that he made a navigational error and gave an order for a turn too late (BBC News, 2013). The drivers for the chaos were the rock that the ship hit was not marked on the nautical chart (Johnston, 2012) or failure of electronic navigation systems. The crew of the ship had also failed to give instructions on how to evacuate the ship due to evacuation drill was not conducted earlier (Westcott, 2012). The ship crew also struggled to evaluate the situation and communicated incomplete information to the Italian authorities (BBC News,...
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