Carnival Cruise Line Case 5 | P a g e Perhaps the greatest strength of Carnival Corporation is that it is the undisputed largest cruise operator in the world. This gives Carnival and advantage over its competitors because it’s so recognizable throughout the globe. This is enhanced by another strength, which is its extensive advertising program. Carnival Cruise Line is the most advertised cruise operator in the world. A third strength of Carnival Corporation is its pricing strategy, which is allowable and successful because of its size. Carnival can offer lower prices than its competitors which makes it ideal for the markets it attempts to reach. This leads to the fourth strength of diverse target markets with plenty of room for growth. By catering to these markets, Carnival has ensured that it will not need to seek out new markets unless the company desires. Carnival Corporation has its fair share of weaknesses. The weak safety record of the company could discourage consumers from choosing its products and prevent prospective employees from working for the company. A second weakness is the lack of a consistent crisis management plan. Each incident has been handled differently and there is not central leadership figure taking charge of this missing component. A safety plan on board the ship is critical during a crisis because it provides an established chain of command. If the mentality on board the ship is “every man for themselves” because the crew is not confident that the crisis will be resolved, the whole ship operation could be in jeopardy. Lastly, Carnival has cultivated a reputation for being the “Wal-Mart of the cruise industry”. While this message may be intended to emphasize its low price point, it also could imply low-quality or a “you get what you pay for” brand association. Potential consumers enjoy the low prices but they do not want affordable to come at the expense of safety. The current industry environment affords several opportunities for the cruise industry, including Carnival Corporation. The first opportunity is the growth and emergence of new social
Carnival Cruise Line Case 6 | P a g e media platforms. Carnival should develop a social media marketing plan and utilize the platforms that make sense for the company. Social Media is also a great way for Carnival to identify prior guests affected by disasters and make restitutions. Another opportunity is the growing transparency between companies. Carnival Cruise Line could look to other cruise lines for best practices when establishing its much-needed crisis plan. A third opportunity is the growing cruise industry. There is potential for Carnival to add more ships that have enhanced safety measures, learning from past incidents regarding mechanical failures. Carnival could also pull existing ships to ensure that all safety measures are up-to date as new ships are built and utilized in the fleet.
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- Fall '15
- Carnival Cruise Lines, Cruise ship, cruise line, Holland America Line, Carnival, Carnival Corporation