5 Forces of Carnival Cruise Line

INTRODUCTION Carnival has enjoyed an extended run as Big Kahuna of the cruise world. The assets of its parent company, Carnival Corporation, are enormous and growing: In addition to its own fleet of 20 ships, Carnival Corp. holds full ownership of Cunard, Seabourn, Costa, Windstar, and Holland America Line -- all told, more than 50% of the North American cruise industry. And, in April 2003, Carnival beat out Royal Caribbean to acquire P&O Princess, adding yet another major cruise brand to its cruise dynasty. When all is said and done, Carnival Corp. will operate a combined fleet of 73 ships, with another 11 scheduled for delivery over the next few years. The Wal-Mart of cruising, Carnival specializes in colorful, jumbo-size resort ships that deliver plenty of bang for the buck. If you like the flash of Vegas and the party-hearty of New Orleans, you'll love Carnival's brand of flamboyant fun. Sails to: Caribbean, Mexican Riviera, Alaska, Canada/New England, Hawaii. Nobody does it better in the party department. The line with the most recognized name in the biz serves up a very casual, down-to-earth, middle-American Caribbean vacation. While food and service are pretty average, there sure are a lot of choices to keep most people satisfied, from round-the-clock entertainment to sushi bars, upscale supper clubs on the Spirit-class ships, and huge kid and teen centers on the Conquest-class ships.(1) SITUATION ANALYSIS A situation analysis researches the organizations current position in the marketplace and reveal potential opportunities to promote it (J.R.ABBEY 1998 ,P.54). The cruise market situation has been anallysed accordin to the S.W.O.T. analysis (keller,kotler 2006 p52.) Strengths Weaknesses High fixed costs (25% of overall operating expenses) Onboard service is labor intensive Long lead time for new ship delivery Seasonality of ship usage Loyal customers Financial stability Weaknesses High fixed costs (25% of overall operating expenses) Onboard service is labor