● Carnival's profitability and net contribution are below the industry average. Revenue fell to $13.157 billion from $14.646 billion. From 2007 to 2009, operating and net income as a percentage of total revenue declined. Cogs as a percentage of total revenue has grown over the past five years. ● High rate of labour mobility. Carnival companies have higher attrition rates than other organizations and must spend more than competitors in training and developing their employees 3. Opportunities ● Demand is strong in Europe. The growth potential of the European market is in line with that of North America, which boomed 12 years ago. Cruise ship jobs are out of deman ● Scientific and technological progress. Online leave planning; computer-controlled Stabilization Systems; Environmental Management Systems; increased demand for customizable product / service-as-a-reward schemes; and the trend towards social networking as a means of connecting directly to potential
● Government support. New Technology Standards and free trade agreements have given Fiesta access to emerging markets, thanks to government agreements to explore new markets. The government green campaign also provides an opportunity for the state. 4. Threat ● Infectious diseases like corona-virus ● Technology can be replicated by competition ● Extreme weather affects. Hurricane, Typhoon and tornado will affect the cruise line industry. DETAILED FINANCIAL ANALYSIS Key Problems ● Competition increasing According to the International Cruise Association, there are a number of large cruise companies and smaller cruise companies around the world, with more than 100 vessels competing with the Carnival Cruise Lines. Royal Caribbean, one of Carnival's main competitors, operates 38 cruise ships with a capacity of more than 84,000 passengers and plans to add four new ships to reach 100000 berths by 2012. The fleet has visited about 400 destinations around the world. Disney Cruise Line is also one of Carnival's main competitors, with two passenger ships, each with 877 staterooms and a total of 3,508 berths. Disney has its own private island. Norwegian cruise ships have 11 berths with a capacity of more than 23,000 people. The Royal Caribbean has a 27% market share in North America and a 22% share in the rest of the world market. Disney Cruise Line uses its boats primarily as a supplement to its theme park vacations and has a 2 percent market
share in North America. Norwegian has a 10 per cent market share in North America and its subsidiaries have a small market share mainly in Europe. Alternative In any case, there will always be competition, but by being different and offering better services, they will gain an edge over their competitors. However, the company's strategy of doing one thing and doing it better than anyone else will keep them ahead of the competition.
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- Spring '20
- Carnival Cruise Lines, Cruise ship, cruise line, Holland America Line, Carnival