Carnival Cruise Line

Carnival Cruise Line

Michelle N. Ainey

BADM 490

November 3, 2016

Table of Contents

Mission Statement……………………………………………………………3

Brief Overview……………………………………………………….....……3

External Analysis……………………………………………………....…….3

        General Environment Analysis………………………………………..3

        Porter’s Five Forces…………………………………………...………4

Internal Analysis

        Organization Structure…………………………………………….........6

        Financial Analysis………………………………………………………7

        SWOT……………………………………………………………...……7

        Problems……………………………………………………………...…8

        Legal Issues…………………………………………………………......8

        Recommendations…………………………………………………...….8

        Future of Carnival…………………………………………………....…8

Mission Statement

        Carnival mission is to make sure they deliver exceptional vacation experiences through the world’s best known cruise brands that cater to a variety of different lifestyle and budgets, all at an outstanding value unrivaled on land or at sea.

Brief Overview

        Carnival Cruise Line is an American owned company, which is based in Miami, Florida. The company was founded in 1972 by Ted Arison, it is now one of the nine cruise ship brands owned and operated by Carnival Corporation & plc. Carnival has the largest fleet in the group, with 25 vessels currently in operation that account for 21.1% of the worldwide market share.

        Carnival have a total of 98 ships with the capacity of over 190,000 passenger berths.  The fleet-wide occupancy rates usually hover at or above 100%, and with over 70,000 shipboard employees, and more than 260,000 people sailing aboard the fleet at any time.

        Carnival has not only owned ships but also have owned a chain of both 16 hotels and lodges in Alaska and the Canadian Yukon with 3,000 guest rooms to complement Alaska cruisers. In addition, they owned 30 domed rail cars used as sight-seeing trains, which are operated by the Alaska Railroad.

External Analysis

General Environment Analysis

        There are 5 important         analysis in this section. They are Commercial, Global, Environmental, Demographic, and Technological. The first section is Commercial. The goal is to make viewers drawn in and connected to the ocean. The purpose is to convince those who have never been on a cruise before have an amazing time. Showing why over 10 million people a year sail one of the 9 ships and why our cruisers enjoy cruising with us.

        The second section is Global. The extent of infectious diseases and intimidations thereof, hostile weather conditions or natural disasters could have an opposing effect on cruise products' sales & the productivity of all Cruise businesses. Events such as the terrorist attacks in the U.S. on September 11, 2001 & terrorizations of supplementary attacks in the U.S. unfavorably affected the mandate for cruises. Therefore, global matters have a strong effect on all cruise businesses.

        The third section is Environmental. The cruise line industry have a variety of international, national, both state and local environmental protection laws, regulations and treaties that are governed; air emissions, waste discharge, water management & disposal, the storage handling, use and disposal of hazardous materials, such as chemicals, solvents, paints and asbestos. Sometimes the environmental regulators are considered stricter with regulations which can affect the costs or otherwise materially harmfully affect cruise business, results of operations and financial condition lead to price discounting which, in turn, could reduce the profitability of business.

        The forth section is Demographic. Location plays an important part when it comes to getting your cruisers to enjoying themselves. Examples would be customer’s preferences, ages, backgrounds, and how much income they have plays a strong part into when making their choices of which cruise line to select for their next vacation. The cruise line industry has to locate itself to meet the demand for cursing based on the consideration of location trends impacting its major markets. The age of the U.S., Canadian & Western European populace is increasing, between 2010 & 2020, the number of people in the cruise line industry’s main age group of 45 years & older.

        Last but not least is Technological. All cruise line business use software and other IT systems to manage its inventory of cabins held for sale and set pricing in order to maximize its revenue yields, and to optimize the effectiveness and efficiency of its topside and shipboard operations. High technology provides convenient services for customers and all cruise business.

Porter’s Five Forces

Internal Rivalry

        Carnival is the top organization inside the cruise line industry because of its various armadas and imperative worldwide nearness. There are broad obstructions to section and exit inside the cruise line industry, which has brought about a high mindfulness proportion. The cruise line industry is effectively an oligopoly market, where a few noteworthy cruise liners make up more than 90% of the pieces of the pie. Carnival is constantly troublesome in advertising and estimating fights with these contenders, making internal contention key to the business. Too, cruise lines have over all been liable to overwhelming M&A movement, and Carnival here and there contends to get much more share.

The cruise line industry has nearly high contender assortment and a sensible level of item differing qualities. Carnival and Royal Caribbean are every more than 3x the extent of the following real contender. Littler cruise lines tend to center in choices for a specific area or geographic locale. As beforehand noted, Carnival Corporation's various brands make a focused threatening vibe inside the organization; be that as it may, every brand provides food toward a marginally unique area or forces in a particular market or physical locale. For instance, it’s one of a kind Carnival mark spearheaded shorter, less restrictive cruises, while its Princess Brand offers a more 13 luxurious experience. Princess competes, be that as it may, with the to some degree more upscale Holland America line. One supplementary figure developing inward competition cruising is the business' high leave boundaries. It is trying for a cruise liner to offer their benefits and leave the business. This expands rivalry inside the business to some degree, as there is stiff necked attitude in limit alteration, implying that organizations will undermine their costs to help deals when general request is low. Swapping costs between contenders are well missing, especially since unwaveringness programs, which are shared for lodging networks and aircrafts, have yet to for all intents and purposes get on in the cruise line industry, which sets up a danger for Carnival Corporation.