Carnival being a large company has economies of scale for which they have a significant costadvantage over most of their competitorsCarnival corporation has a huge global and international presence. They have strongconsumer demand in the EuropeCarnival aggressively and effectively invests in print and television media. Their promotionstarget the lifestyles of each group of customers. Carnival are "Fun Ships". This creates theimage of high value entertainment.Carnival supports its travel partners with training, online marketing and exclusive offers andsavings to its secondary markets.Affordable vacation packages for families.WeaknessesThe vast majority of the company’s sales come from travel agents who arrange cruises onbehalf of clients. Given the emergence of internet-based travel bookings and direct toconsumer models of selling airline tickets, their business in general has declined. Because thecompany depends on a broad base of going-concern travel agents, any prolonged slump ormajor consolidation in the travel agency business could adversely impact the company.The costa Concordia and costa allegra has suffered some recent accidents tarnishing thereputation of carnival corporation and the cruise industry as a whole. These incidentshappened due to poor safety records and lack in problem solving.They also suffered some low-profile problems such as viral outbreak and losing a person atsea which generated some bad publicity.Many people believe that these types of cruises are very expensiveOpportunitiesThe cruise industry has grown considerably in the past 10 years but still occupies a very smallproportion of the global vacation market. The revenue for cruises has declined in the US, it isgrowing in Europe and Asia, leading to more opportunities for Carnival to expand in theseregions.6
Customers in Asia and China are now looking for luxurious cruises as a vacation option. Sonew location routes can be created to expand the market.Carnival can take advantage of the economies of scale and offer them the best prices andpackages.Brand loyalty and loyalty to cruising are extremely high and should be utilized to get a largenumber of repeat customers.Advertising through different platforms should be introduced to expand their media presenceand attract customers of all age groups.They can adopt new strategies or slightly change the current ones in response to the marketfeedback. And can look into acquisition of other star cruise lines to expand their business.Threats Carnival has been taking advantage of special tax loopholes to avoid paying US corporationtaxes. Carnival is considered a Controlled Foreign Corporation (CFC), which exemptsshipping operations of a corporation from income tax. In 2009 the US government decided tolook at closing those loopholes. If these loopholes are closed, it could affect their financialstatements and fiscal bottom line in the future.