...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 branding by looking at segmentation, targeting, their brand portfolio, along with the brand positioning...
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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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...Report Question: Crew Management of Super Star Virgo Study the crew strength onboard Super Star Virgo. Elaborate on the recruitment methods and criteria in the recruitment of local and foreign crew members by Star Cruise. What are the training and development programmes provided by Star Cruise to ensure quality service? Identify the benefits enjoyed by the crew members. Evaluate and support with reasons if more can be done to improve crew management. Tasks: • Study Crew Strength • Elaborate on Recruitment Methods • Elaborate on Recruitment Criteria • Training and Development Programmes • Service Standards • Benefits Enjoyed by Crew Members • Evaluation • Improvements on Crew Management Crew Strength Currently, there are a total of 1423 crew members of 17 different nationalities onboard the Super Star Virgo. The crew members are mainly divided into three divisions; Marine Department (Deck and Engine, Navigation, Technical), Club Department (Games Operation, Entertainment) and Hotel Department (Housekeeping, Service, Concierge). Recruitment Methods Recruitment of prospective crew is carried out through a crewing agent (Strada Maritime Corporation and Martley Shipping Inc) which thereafter deployment is processed through authorised local crewing agents appointed in the countries. Similarly, job seekers can also send their general applications for suitable positions through the Star Cruise official website (http://www...
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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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...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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...Question 1,2,5 in International Business Environments and Operations, Fifteenth Edition Carnival Cruise Lines: Exploiting a Sea of Global Opportunity. Summary: The case has given us the definition of Cruise, as well as the history of Cruise. Nowadays, there are 2 biggest companies: Carnival and Royal Caribbean nominated the Cruise Industry with total of 72% of the market. By far, Carnival is the bigger than Royal Caribbean. Furthermore, the case goes deeper about the company – Carnival; for example; history, business background and business potential of Carnival. Carnival has done very well In International Water. Company has flags of convenience of about 30 different countries. Legally, Carnival is a Panamanian company, even though it’s listed on the New York Stock Exchange, has operating headquarters in Miami and London, and caters mainly to passengers who set sail from the United States. Moreover, the case also explains how Carnival became so successful: First, ship shopping, Carnival has a huge system in global and is also received a huge advantage of low tax. Secondly, where to find Able- Bodled Seamen, crew members of Carnival hail from 100 countries but mostly they are Filipinos because of fluent English and cheap labor. Thirdly, Casinos and other Amenities, that is because cruises operate outside the jurisdiction of any national authority, they’re not subject to any national laws restricting gambling. In addition, the most activity of shopping in cruise ship is...
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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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...Royal Caribbean Case This main focus of this case study is an analysis on the current situation (data from around 2Q of 2010). The case compares Royal Caribbean to its main competitor, Carnival, through the entirety of the study. The most discussed issue in the case is of Royal Caribbean and its situation relative to the world economy as its recovering from one of the worst recessions since the great depression. From where the timeline of the case begins (2Q of 2010) it had made a large recovery in profit and had cut costs as well. However, even despite the forecasts predicting a further increase in profit, Royal Caribbean along with the cruise line industry is still in a delicate position. The case constantly brings up the point that cruises are solely a purchase based off of discretionary income. In times of economic struggle, discretionary items like cruises are left out of the budget. Another issue that the case brought up with every factor discussed is Royal Caribbean being 2nd place in the world for market share, bested by Carnival Cruise Lines. The case goes back and forth debating whether or not its position within the market share is a good thing. While they by far are in 2nd place, Royal Caribbean has a special niche in the market being the luxury cruise liner with the newer and nicer ships. Overall, the largest theme in this case study is the uncertainty of the cruise industry with the unpredictable economy that may or may not be recovering. Strategic & Financial...
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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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...Carnival Cruise Lines is the largest cruise company in North America and carries over 700,000 passengers over a week. 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. Because of their strong brand image they are able to achieve double-digit growth in the industry. One area that Carnival needs to improve upon in order to stay competitive within the industry is information technology. Carnival has a large IS group, but the focus has been on maintenance and operations of the existing infrastructure. They had trouble figuring out who to market and using data they had gathered from customers, they could figure out where to focus their energy. One of the issue of Carnival was that they felt like they didn’t need to be the IT innovator but they need to keep up with their competition. Carnival’s management had been discussing what strategy to use in order to get a better understanding of their customers and how to make them loyal to the cruise line. One option was to use CRM software. CRM had been a fad that had recently swept the industry, but due to Carnival's conservative stance toward IT they decided not to implement it. I think that CRM could help Carnival gather and analyze customer data in order...
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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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...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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...Carnival Cruise Lines 1-3. The global forces that have contributed to the growth of cruise-line industry are the nationality of competitors. Companies can obtain ‘flags of convenience’ from about 30 different countries, and travel to many different ports. This can tend to make it easier for companies to be based out of other countries and save money on taxes and such. 1-4. Legally, Carnival is a Panamanian company, and Carnival’s revenue is not subject to U.S. or Panamanian income taxes. 1-5. The Global Recession greatly impact the global cruise industry. People were less willing to spend money on vacations which took a toll. Having a very diverse work force can strongly help the global cruise industry. Making it easier for customers that don’t speak English as a first language. 1-6. If Carnival offered discount travel to embarkation ports that might entice more German or French travelers to go on Carnival Cruises. Also, if Carnival were to create ports closer to those regions these travelers may be compelled to cruise. 1-7. Percentage of first time cruisers is declining. Industry members are worried that repeat cruise goers will get bored and move on to resort/destination vacations instead. I would market mainly to first time cruisers, offer large discounts or specific cruises for first timers. Cruise industries need to keep creating new things and having niche cruise lines in order to keep repeat customers returning. Though future gas prices, taxes, and interest...
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...1. The growth of cruise-line industry has been influenced by factors like: -increase in and expansion of technology (refurbishment of cruises, installation of discos and casinos,etc..) - liberalization of cross border trade and resource movements (international field, ship crews from over 100 countries, use of locally product from all over the world, treating the world as a source) -increased globally competition (development of air-service had changed the objective of Carnival Corporationidea of fun ship vacation) -development of services that support IB (advantages of lower taxes and less stringent employment rules) 2. In the past, ships were only used for transporting people across oceans and seas for business or pleasure, but the sea voyage was an essentially elitist endeavor, and very luxury and expensive. The advent of transoceanic air service after World War II offered a speedier and less expensive alternative, and airlines captured passengers from ocean liners. Furthermore, advances in jet technology made air travel a viable option for a growing mass market of budget-minded international travelers. As a consequence, cruise companies one by one retired the great luxury lines for travels. In this context, carnival cruise lines saw an opportunity to expand mass-market sea travel by promoting the idea of the ”fun ship” vacation, an excursion designed to be a little less formal and luxurious than the traditional ocean liner. Moreover, a lot of these vacationers...
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