Cost Leadership- Best Value Low Cost: One of the main objectives of Carnival Corporation is to provide cruise services to travelers regardless of their budgets or income. In order to fulfill this objective they have set up their sub-brands such as Holland America, Windstar and Seabourn that provide low cost cruise to its travellers. Normally the cruise is regarded as very expensive and that only the elite can afford it but Carnival Corporation has made it feasible for the travellers with no so high incomes. In this way they have low cost leadership over their competitors. Best Value: While sub-brands like Holland America provide low cost trips, other sub-brands like Carnival Cruise lines and Costa Crociere provide luxurious cruise facilities to the elite class of people who can afford expensive trips. But Carnival Corporation makes sure that the facilities being provided to the highly paying customers is of the top most quality in the entire industry. Facilities like on-ship golf courses, skating rinks, beauty salons, spa facilities etc are provided to the on-board customers. They serve their customers better than their competitors even though the ticket prices might be similar. MEANS FOR ACHIEVING STRATEGIES
CARNIVAL CORPORATION-2007 Every organization applies various means to achieve the strategies set by it. Two means that the Carnival Corporation has applied are mentioned below: Joint Venture/Partnering: In order to achieve the strategies of market penetration and forward integration mentioned above, Carnival Corporation has created a partnership with the leading airline computer reservation system. Those systems include: SABRE Galileo Amadeus Worldspan All these systems enable the customers of Carnival Corporation to book and purchase their tickets either on telephone or through the internet. This excludes the role of travel agent which is lengthy and also expensive. Acquisition: When a larger organization purchases a smaller firm we say that an acquisition has taken place. Carnival Corporation has implemented the strategy of horizontal integration so that it can exercise greater control over its competitors. In order to achieve this strategy CC has used the process of acquisition and with time has acquired competing firms that were smaller in size. Holland America Line Windstar Cruises Alaskan/Canadian tour operator Seabourn Cruise Line Costa Cruises Cunard Line P&O Princess Cruises
CARNIVAL CORPORATION-2007 SWOT MATRIX Strength-Opportunity (SO) Strategy: One of the strengths of Carnival Corporation is that they have a large fleet size and have ordered further ship that will be added in their fleet very soon. As we have mentioned that there exists a huge opportunity in form of large potential customer base in Asia. Carnival Corporation can utilize their large fleet size in catering the potential customers of Asia and as a result expand their customer base.
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- Spring '16
- Carnival Cruise Lines, Holland America Line, Carnival, Carnival Corporations