Current Situation
Carnival Corporation & plc is the largest global cruise line company and cover more than 50% worldwide share of the cruise line vacation market. It is headquartered in Miami, Florida, and London, England with majority of operations in North America and Europe. The company’s cruise brand portfolio consists of 11 brands operated geographically in different Target market, which include Carnival Cruise Lines and Holland America in North America; P&O Cruises, Princess Cruises, Cunard Line, Ocean Village and The Yachts of Seabourn in the United Kingdom; AIDA in Germany; Costa Cruises in Southern Europe; IberoCruceros in Spain; and P & O Cruises Australia in Australia. These brands provide the capability to offer a broad range of …show more content…
One of the big opportunities is to explore the Asian market. Before 2010, Asian customers only contributed less than 10% of the global cruise revenue. However, the market grew significant fast, for instance, Asian cruise tourism is at double-digit rates growing, cruise capacity increases rapidly, the number of ships deployed grew at a 10% rate. Asian market is projected to be as important a market as North America within the next 10 years. Also, the fast growing trend on demand for luxurious vacations in Asia will excite the global supply …show more content…
Fuel cost has been a significant portion of Carnival’s cost structure, from 14.1% in 2009 to 18.2% in 2010. Because of the global fuel demand and supply disruption, the fuel price becomes much more volatile and difficult to be predicted in the future. Additionally, The U.S. Environmental Protection Agency and European regulatory organizations have considered or enacted new laws and regulations to manage cruise ship discharges. These require the industry to use lower sulfur content fuels and stricter emission limits to reduce GHG effects, which would raise the prices of the fuel and adversely impact the cruise company’s profitability.
Strategic Recommendations
Short-Term
Poor safety report damaged company publicity and reputation. Carnival should enhance the quality and safety controls efficiently through the whole daily operations so that company could mitigate or reduce the losses of the accidents.
Consider engaging new acquisition, merger or joint venture with cruise company from Asia-Pacific region, for example, Hong Kong-based cruise line Star Cruises. This will help the company enter the Asian market, expend the business effectively.
Long-Term
Carnival continue use Broad Differentiation strategy. Especially when exploring a new market, the implementation of new technologies, diversification of products
Carnival Corporation & plc is the largest global cruise line company and cover more than 50% worldwide share of the cruise line vacation market. It is headquartered in Miami, Florida, and London, England with majority of operations in North America and Europe. The company’s cruise brand portfolio consists of 11 brands operated geographically in different Target market, which include Carnival Cruise Lines and Holland America in North America; P&O Cruises, Princess Cruises, Cunard Line, Ocean Village and The Yachts of Seabourn in the United Kingdom; AIDA in Germany; Costa Cruises in Southern Europe; IberoCruceros in Spain; and P & O Cruises Australia in Australia. These brands provide the capability to offer a broad range of …show more content…
One of the big opportunities is to explore the Asian market. Before 2010, Asian customers only contributed less than 10% of the global cruise revenue. However, the market grew significant fast, for instance, Asian cruise tourism is at double-digit rates growing, cruise capacity increases rapidly, the number of ships deployed grew at a 10% rate. Asian market is projected to be as important a market as North America within the next 10 years. Also, the fast growing trend on demand for luxurious vacations in Asia will excite the global supply …show more content…
Fuel cost has been a significant portion of Carnival’s cost structure, from 14.1% in 2009 to 18.2% in 2010. Because of the global fuel demand and supply disruption, the fuel price becomes much more volatile and difficult to be predicted in the future. Additionally, The U.S. Environmental Protection Agency and European regulatory organizations have considered or enacted new laws and regulations to manage cruise ship discharges. These require the industry to use lower sulfur content fuels and stricter emission limits to reduce GHG effects, which would raise the prices of the fuel and adversely impact the cruise company’s profitability.
Strategic Recommendations
Short-Term
Poor safety report damaged company publicity and reputation. Carnival should enhance the quality and safety controls efficiently through the whole daily operations so that company could mitigate or reduce the losses of the accidents.
Consider engaging new acquisition, merger or joint venture with cruise company from Asia-Pacific region, for example, Hong Kong-based cruise line Star Cruises. This will help the company enter the Asian market, expend the business effectively.
Long-Term
Carnival continue use Broad Differentiation strategy. Especially when exploring a new market, the implementation of new technologies, diversification of products