Carnival Cruise Line was able to generate its brand image through this unique line of advertisement through multimedia. People get to know about the different packages that were being offered by the company as well as the other entertainment and port services. Following the acquisition of cruise line that caters South America and the Mediterranean Sea, the multimedia advertising played the vital role by acknowledging the customers about the new operated ports. Apart from this, Carnival Cruise Line added several onboard activities and recreational activities such as the introduction of live nightclubs, gambling in casinos, shopping environment such as the gift shops and other onstage live shows. The rationale behind the success was the Carnival Cruise Line’s approach in making the cruise the primary destination of cruisers and ports being the secondary destination. Adding on board activities into the cruise not only attracted a large number of customers but also the non-core activities of Carnival Cruise Line proved to be significant. The revenue generated from casino, nightclubs and gift shops resulted in the more profit for the company as whole. This sort of extra revenue generating activities had given Carnival Cruise Line the opportunity to pursue the cost leadership strategies. Over the years, Carnival Cruise Line has effectively achieved consistent improvement in its competitive position not only in cruise line industry but in vacation market as well. This has resulted in Cruise Line being the most popular Cruise line in the world. The competitive strategy of Carnival Cruise Line is to cater each segment of the market. Carnival Corporation 6
CCL Corporate Strategy’s effects on divisions One of the merger of Carnival Cruise Line, Holland America Line (HAL) targets the old, more sophisticated cruisers with fewer youth oriented activities that is consist of discos. Whereas on the other hand, Carnival Cruise Line being focused on ‘fun ship’ does not address the motive of Holland America Line. Apart from this, the prices charged by Holland America Line (HAL) is not in line with that of Carnival Cruise Line. HAL charges around 25% more prices of the similar cruise experience offered by Carnival Cruise Line. This could put a negative impact on the brand of CCL in front of the public. The prices are not in line with the corporate strategy of the company while the CCL wants to eliminate the perception of public about cruising. Further, Holland America Line is not growing as fast as Carnival Cruise Line and therefore, making it difficult for the management to implement strategy according as it is already engaged with eleven divisions overall. On the other hand, Holland America Line (HAL) provides benefits to CCL by giving opportunity in Alaskan market where it had none before. One of the subsidiary of HAL, Holland America Westours, operates the largest chain of tourism and provides vacation synergy with HAL.
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- Winter '09
- Finance, ........., Carnival Cruise Lines, Holland America Line, Cruise lines, Carnival Corporation & PLC, Carnival Corporation