4. Low price: Carnival’s all-inclusive packages, when compared to packages at resorts or theme parks such as Walt Disney World, often were priced below those destinations, especially when the array of activities, entertainment, and meals were considered. Weakness
12 1. Competing: Higher fuel prices and increased airline costs affect the whole industry. The first Persian Gulf War caused many cruise operators to divert ships to the Caribbean, increasing the number of ships competing directly with Carnival. Opportunity 1. Demand: People are more and more interested in all inclusive vacation packages for holidays. 2. Exploitability: Although Carnival has expanded its route to seven continents, but did not reach every country, there are still many countries to be developed. Moreover, the customer groups that currently choose to experience remain in a very small age range, Carnival can rely on advertising and other promotional methods to attract larger target customers, will produce high execution and ROI. Threat 1. External factors: fuel cost adjustment, international political relations fluctuations, terrorist attacks, economic conditions on the national income impact, resulting in lower income, will have threat on the number of cruise passengers and profits. 2. Competitors: 1) We can believe that the Royal Caribbean Cruise is Carnival's biggest competitor. Carnival lost to Royal when bidding for Celebrity Cruise Lines. By 2010, Royal has the number of cruise ships and capacity can still compete with Carnival, and even in the cruise industry, Royal is considered a little higher than Carnival's competitiveness. 2) Land- based vacation alternatives are also a major competitor to the cruise industry. And, by plane to travel to various countries, to experience the local culture of the resort has a place cannot shake. 3. Legal Issues: Carnival Like all cruise companies and hotel service industries, there are many litigations needs to be addressed. The media will often enlarge the negative news, freedom of comment led to public opinion does not necessarily turn to the fact side. Too much negative news and reverse public opinion will greatly affect the interests of the company. Identification of Key Critical and Strategic Issues Analysis and Recommendations
13 1. Approach to sustainability (environment friendly) Identification + Statement What is the reason you want to enjoy cruise lines? It has to be pristine waters, cloudless skies and sunny ports. But, ironically, every year, the industry consumes millions of tons of fuel and produces almost a billion tons of sewage. If insufficiently treated, exhaust and sewage from ships can fog the air and pollute the water, potentially causing a host of ugly environmental and health effects that undermine the very natural beauty that cruise ships advertise to potential travelers. An estimated 24 million passengers are expected to cruise the world’s oceans in more
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- Summer '19