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Cruise Line Industry: Carnival Case Study

Cruise Line Industry: Carnival Case Study

Current Situation

A. Financial Performance – The Company had a 26% market share of the cruise line industry. It’s 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. Carnival’s 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 vacationer’s 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 Arison, 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 superliners. These very large ships not only hold more people,...

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