Carnival Cruise Lines: Exploiting a Sea of Global Opportunity International business 13th ed.
Summary: This case describes the history of the cruise industry and defines it, then it talks about the current state of the Cruise industry, then it goes on to discusses the business in international waters, after that it states the main points in Carnival Cruise Line operations, finally it argues the overseas environment. SWOT Analysis: Strengths: 1. Carnival cruise lines is one of three major companies that has the share of 91% of the market and it is the largest of all three. 2. That being said it is very strong financially. 3. The financial strengths of carnival cruise line generates
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Opportunities: 1. Flags of convenience is a different measure in a legal way for this type of company like carnival cruise lines that allows it to take advantage of lower taxes and more lenient employment rules. 2. Having almost 2000 different onshore spots where customers can have tourist trips in those different locations and this makes the cruise more enjoyable by the customers. 3. Lower prices for ships, since the ship building industry is beneficial to the country it is manufactured in it is most often subsidies by the government which is the reason behind the low prices. 4. Carnival cruise lines are able to hire most of its employees from the Philippines which provides lower labor costs, as a plus most Filipinos are generally fluent in English. 5. Since the company operates in international waters it is not under the jurisdiction or the authority of any national rules, that is why they have casinos on board and passengers can shop for merchandise from all around the world 6. After 9/11 carnival immediately increased the number of ports operating in the U.S to serve people who cancelled their flights or afraid of flying. 7. Since customers pay for a full package they know what to expect and avoiding unexpected exchange rates so in these bad economic conditions the cruise industry did not suffer as much because of