Sustainable. Sustainable development is a necessary trend in the world. Carnival should take attitudes toward “green” or ecological products and support for renewable energy.
6. Social Demographics and skill level of the population. Baby boomer generation approaching retirement. Only 20% of U.S., 10% of UK, and 5% of European population have ever taken a cruise. Class structure, hierarchy and power structure in the society. Education level as well as education standard in the Carnival Corporation ’s industry Culture (gender roles, social conventions etc.) Entrepreneurial spirit and broader nature of the society. Some societies encourage entrepreneurship while some don’t. PORTER FIVE FORCES 1. Threat of new entrants: Low High start-up costs Brand recognition and brand loyalty High sustainability costs related to maintenance and maintaining social responsibility (i.e. costs of being environmentally friendly) Significant global laws and regulations Stagnant U.S. market with overseas potential: European market valued at $7.2 billion and Asia/Australian market valued at $2.9 billion Industry heavily dominated by only a few key players (i.e. 4 top competitors account for over 70% of global market) 2. Bargaining power of buyers: High
Industry heavily reliant on consumer traveling trends and higher levels of disposable income Fixed sailing dates, traveling to ports, pre-determined destinations make it more difficult for those customers who do not have flexible vacation schedules Many other vacationing options 3. Threat of substitute products or services: High Land-based vacation alternatives: Resorts Theme parks: Disney, Universal Hotels/Motels are the strong competitors for the cruise industry Vacation ownership properties 4. Bargaining power of suppliers: Moderate Food/beverages and hotel/restaurant supplies – low These items are available from a number of different sources at competitive prices Allows carnival to easily obtain volume discounts Fuel and port facility services – high Travel agencies – low 5. Competitive Rivalry among competing firms: High Primary competitors: Royal Caribbean Cruises Ltd., Disney Cruise Line, and Norwegian Cruise Line
Several other smaller companies competing in specific geographic markets and targeted cruise segments (i.e. Crystal Cruises is competitor in luxury segment) Competes with similar or overlapping product offerings across all three segments SWOT ANALYSIS Internal Environment: Strengths and Weaknesses (SW) 1. Strengths: Strong brand portfolio. 10 different brands accountable for individual performance and brands cater to different market segments (contemporary, premium, and luxury); Brands built through acquisition of other cruise lines; Fleet operations are worldwide Corporate Culture. Senior management committed to be responsible corporate citizens.
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- Spring '20
- Test, Carnival Cruise Lines, Cruise ship, cruise line, Holland America Line, Carnival