Carnival Case study analysis (the myth beyond an over sailing industry) Adam Madani Hospitality Strategic Management Friday, October 21, 2016 The start of a business at Carnival cruise lines (brief history): “ We’re perfectly happy to be the Wal-Mart of the cruise industry”, that is what Mr. Terry Thornton commented, vice president of marketing planning at Carnival Cruise lines. After July 2005 building their 110,000-ton2 Carnival Liberty which embedded on giving carnival more passenger carrying capacity than any other cruise lines in the world. With 800-plus ocean view. 22 lounges and bars, four swimming pools and a spiral water slide. While North-American passenger volume doubled between 1994 and 2004, Carnival’s volume tripled. More than 3 million guests sailed Carnival in 2004, the most in the company’s history, and a figure representing nearly one out of every three cruisers. Carnival Corp & plc, reported net income of 1.85 billion on revenues of 9.73$ in 2000. Through the years, Carnival had remained true to its fun ships lineage and its goals of providing a good quality, affordable vacation to mainstream travelers. Nevertheless the main question that was circled in executive’s minds was that whether it was time to set a new course for carnival and if so how best to reinvent the brand without losing its essence. This success story behind carnival continued developing with years passing by in 2015- 2016, were their intention managerial vision enabled them to perform more and aim even higher. With the introduction of new ships in 2016 called the carnival vista build by Fincantieri, in addition to the latest carnival horizon ; these ships accommodated a capacity of 4,000 passengers in addition to a gross tonnage of 135,000. This papers aims at measuring how Carnival enlightened its path towards double return and satisfaction by: Measured Capacity growth, accelerating demand, new market opportunities, collaborative working environment to unlock new potentials and sustainable operations. The Competitive structure of the Cruise Industry (competitors and targets): In this part we will discover how every cruise line had its own strategic planning and thinking process that enabled it to overpass the rival competitors in the market and also how to become the leader in the cruising industry, but smart carnival cruise line was an
opportunistic company that seized every opportunity found in the market and created a system of value creation based on past and present conceptual analysis, deriving every strategy and concept found in the market by it’s rivals and working hard on differentiating it from its rival to become the better and the best and responding to the supply and demand curves, while taking risks and working on their internal weaknesses and strength and overcoming those external opportunities and threats.
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- Spring '17
- Jane smith
- Carnival Cruise Lines, Holland America Line, Carnival Corporation