NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote
Current Situation A. Financial Performance The Company had a 26 % market share of the cruise line industry. Its gross profit margin increased by 4. 69 % from the previous year. Carnival is using its assets effectively. Their sales increased by 10. 62 % from the previous year. The company is financially strong.
B. Strategic Posture 1. Mission To consistently exceed guests expectations in all areas of product, service, and support. Carnivals vision is to consistently provide quality cruise vacations that exceed the expectations of the guests. 2. Objectives The company wants to keep promoting the Fun Ship theme, while adding new activities and entertainment. The company also wants to provide cruises to meet the demands of every vacationers budget and expectations.
Carnival also hopes to attract a larger percent of the vacationing market and increase their number of repeat customers. Finally, Carnival plans to attract more customers by training travel agents to promote their product. 3. Strategies To meet their objectives, Carnival uses a variety of strategies. One strategy is acquiring new cruise lines and building new ships. They are particularly interested in Asia and the European markets. Another effective strategy is the high quality of the service.
This results in customer satisfaction, which leads to new and repeat customers. Another strategy is the economies of scale. Carnival is trying to increase the size of the company so that they can have the lowest break-even point in the industry. II.
Strategic Managers A. Board The board is comprised of fifteen members. Six of the members are directly involved in the Carnival Corporation. The other nine members hold various jobs, such as ambassadors and executives of financial groups. The company has a stable mix of inside and outside directors. B.
Top Management The management of Carnival Corporation is very strong. The leaders have been responsible for many firsts in the industry. The management team in place has been in place for several years. When the Corporation merges or buys out other companies they often keep on the key players from the new acquisition.
The Chief Executive Officer and Chairman of the Board of the Carnival Corporation is Micky Arizona, whose father founded the corporation. III. External Environment (EFAS see Appendix A) A. Societal environment is strong.
This has come about because there are more women in the workplace, which gives households more disposable income. 1. Carnival is now building superliner's. These very large ships not only hold more people, but also house more activities and entertainment. 2. The company is catering to many diverse populations. They are doing this by offering a large range of cruises, from 3 days to many weeks, on ships for the middle class to the very wealthy. 3. Higher fuel prices and airfare could cause problems in the industry.
They could cause prices to go up, which will keep some people from taking a cruise. B. Task Environment is very competitive. There are many other companies trying to compete with, or outdo Carnival. 1. Carnival has large economies of scale. This saves them significant cost advantages over their major competitors. 2.
There is a threat of substitute products. Many vacationers look at land based vacations instead of cruises. 3. Buyers have the ability to force competitors to lower prices. Many vacationers will choose the package that is less expensive, causing others to lower their prices as well. This can affect the profits for the company. 4. There is a threat of new entrants.
This is evidenced by the entrance of Disney cruise lines. This can draw many family vacationers away from Carnival. C. Main Competitors (List of competitors see Appendix F) 1.
Carnivals main competitors are Royal Caribbean, Princess, and the Disney Cruise Lines. I feel that Disney will be Carnivals strongest competition in the years to come because of Disneys deep pockets and popular name. D. Summary of External Factors 1. At the present time there are three external factors that are critical. They include the more disposable incomes of the public, the competitions between cruise lines, and the ability of the cruise industry to cater to diverse populations. 2.
The future factors that are critical to the company are the addition of new and larger ships and the use of travel agencies to increase sales. Another future threat for Carnival is the threat of terrorism. This threat causes people to stay close to home and not plan large vacations. IV. Internal Environment (IFAS see Appendix B) A. Corporate Structure 1.
Carnival has a divisional structure. It is made up of two cruise divisions and a chain of Alaskan hotels and tour coaches. 2. The current corporate structure is based on a profit center concept. The goal of the company is to make a profit. 3. Each division of the company is responsible for itself. However, all the divisions also report to the CEO of Carnival Corporation.
B. Corporate Culture 1. Executives and workers all share the same goal. They want to provide customers with the highest level of service possible. This will help bring in new customers and keep others coming back. 2. Carnival has a strong cultural intensity.
The employees accept the culture of the ships. They show this by acting in a uniform way that meets the standards of the company. 3. The company takes the values of different nations and groups into consideration. It does this by providing different types of ships to different areas of the world and for different groups of people. C. Corporate Resources 1.
Marketing a. Carnival places a high priority on marketing. The ships have a Fun Ship theme that is promoted through television and print advertising. Carnival wants to think of the boat as the destination, and the ports as secondary. b.
The marketing strategies are consistent with the companys objectives of bringing in new customers and bringing back repeat customers. c. The marketing managers are including more varied activities that are marketed towards different lifestyles. This attracts more people who would not have considered a cruise in the past. d. Carnival has a strong marketing mix.
They are trying to make their product unique by using the Fun Ship theme. They also offer many promotions that lower the cost of their cruise. The company also offers a large selection of cruise options, with ports located in many countries aro...
Free research essays on topics related to: external factors, main competitors, economies of scale, cruise lines, corporate structure
Research essay sample on Cruise Line Industry Carnival Case Study
