Carnival's Rivalry

Rivalry among competing firms can be a negative for Carnival due to competitors having a similar sized company and fleets. Carnival and its competitors all have about the same capabilities as there is not much differentiation within the cruise industry because of the similarities consumers may switch brands easily from one cruise line to another, due to price or port destination. Potential entry of new competitors minimal and not a major factor for the Carnival cruise line. Carnival have a very strong brand name and consumers are typically going to book with a company they are familiar with oppose to a new company that has no history. Carnival provides a central location for its company in Florida while dominating the North America market. Potential development of substitute products can be a negative for Carnival because there are many other vacation options rather than going on a cruise and Carnival as well as their competitor has no control in any of these …show more content…
There are little difference between the different cruise lines and consumers can easily switch to one of Carnival’s competitors. Bargaining power of suppliers is a positive for Carnival as they have control over their volume and it is inexpensive for Carnival to change suppliers. The suppliers will compete to secure Carnivals business, for example with the Travel Agents. They want Carnival as a client because a bulk of Carnivals business comes from Travel Agents and vice versa. Bargaining power of consumers is a negative for Carnival because consumers tend to switch between two or three brands, because it is inexpensive for them, and consumers typically want to save money. Also, there is a large customer base but Carnival has to prime competitors, Royal Caribbean and Norwegian who they must compete with for the customers. And brand loyalty is subjective, they do have