laws and regulations, especially those laws that concern the Maritime industry. Economic Force: Carnival Cruise Lines faces many economic factors that are pertinent to the corporation because these factors can be detrimental or beneficial to the economy which can in turn place a negative or positive effect on the corporation. Firstly, the 2008-2009 economic recession of the United States was an unfortunate economic slump that had heavily impacted many organizations within the United States. Although this recession left a negative indent on many fortune five- hundred companies, the cruise line industry, managed to survive the recession with annual Carnival Cruise Line Case Analysis Rolle | Rizo | Alcindor 6
growth of 5% (2008) and 8% (2009). It must be noted that this growth rate was due to international passengers as opposed to mostly American passengers. Hence, this growth rate suggests that Carnival did not suffer severely from the recession and managed to refrain from entering the red in their financials, attaining a 2.3-billion-dollar net income. Secondly, competition is another economical factor that signals good signs for a country’s economy. However, it can be either advantageous or disadvantageous to rival corporations. Carnival has many competitors in the tourism industry including other cruise lines such as Royal Caribbean Cruises, Norwegian Cruise Lines and Disney Cruises. However, it is also forced to compete with land-based vacation alternatives in leading tourism destinations worldwide. Thirdly, Carnival Corporation and plc had engaged in a ‘Stock Swap’ together. This Stock Swap was intended to serve a positive economic benefit between the two companies, to sell stock of one company in order to generate funds to purchase stock in another company. All these efforts were geared toward increasing the economic value and profitability of both corporations. Social Force: Carnival Corporation and plc suffered many losses as a result of social issues arising. Firstly, the September 11th 2001 terrorist attack on the United States had caused many potential passengers to cancel their trips and subsequently cause carnival to experience severe losses for the next several years after 9/11. Secondly, as it relates to the social factor of family demographics, we can see how this corporation tailored its advertising and marketing toward developing a customer profile that sought individuals from the age of twenty-five (25) to thirty- nine (39) years of age. This is an important social factor for Carnival Corporation simply because younger customers are more concerned with taking adventurous vacations and achieving an experience based vacation that is second to none. Thirdly, another social factor is that the change in the role of women. After women were allowed to enter the workforce, this provided more disposable income to be available within families which resulted in more individuals taking cruises/vacations. This social force represents a shift in cultural norm that particularly benefitted Carnival because these families then realized the need for and the benefit of taking a cruise.
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- Summer '19
- Carnival Cruise Lines, Holland America Line, Carnival Cruise Lines Corporation