Carnival Corporation Case Review
03/15/2010
Carnival Corporation-2007
Carnival Corporation is the largest cruise and most profitable cruise ship operator in the world. Carnival is headquartered in Miami, Florida and London England and employs 80,000 employees. “Carnival operates a fleet of 95 ships, with another 11 ships scheduled for delivery between 2010 and 2012 (Carnival Corporation, 2010).” Carnival cruises to Alaska, the Caribbean, Panama, South America, Mediterranean, New England, Bermuda, South Pacific, and the Bahamas. “Total revenues in 2009 for Carnival Corporation were $13.2 billion and net income was $1.8 billion (Carnival Corporation, 2010).” In 2009 Carnival Corporation had 8.5 million guests aboard their fleet.
Porter’s Five Forces Model
When examining the first of Porter’s five competitive forces Carnival Corporation has a moderate number of competitors and the industry is growing slowly, mostly due to a steep decrease in prices facilitated by the recent economic downturn. Carnival operates over twice as many ships as its closest competitor. As of January 2010 Carnival had a passenger capacity of approximately 185,000 berths in their fleet of 95 vessels, while Royal Caribbean is only able to accommodate 84,050 berths on its 38 cruise ships. Over the last decade, Carnival has made up at least half of the industries total revenue and has posted modest gains on the competition each of the past several years. The form of competition comes from pricing, destination offered, and ship attractions. Carnival holds the strongest position in the industry with an ever increasing global outreach and offers among the lowest prices in the industry. Carnival also differentiates itself from the competition by accommodating children with activities and amenities. Because of the sheer magnitude of Carnival’s fleet they are able to offer a very diverse experience across their different cruise lines. For instance, the Carnival ship “Dream” which travels to the Caribbean and
Carnival Corporation-2007
Carnival Corporation is the largest cruise and most profitable cruise ship operator in the world. Carnival is headquartered in Miami, Florida and London England and employs 80,000 employees. “Carnival operates a fleet of 95 ships, with another 11 ships scheduled for delivery between 2010 and 2012 (Carnival Corporation, 2010).” Carnival cruises to Alaska, the Caribbean, Panama, South America, Mediterranean, New England, Bermuda, South Pacific, and the Bahamas. “Total revenues in 2009 for Carnival Corporation were $13.2 billion and net income was $1.8 billion (Carnival Corporation, 2010).” In 2009 Carnival Corporation had 8.5 million guests aboard their fleet.
Porter’s Five Forces Model
When examining the first of Porter’s five competitive forces Carnival Corporation has a moderate number of competitors and the industry is growing slowly, mostly due to a steep decrease in prices facilitated by the recent economic downturn. Carnival operates over twice as many ships as its closest competitor. As of January 2010 Carnival had a passenger capacity of approximately 185,000 berths in their fleet of 95 vessels, while Royal Caribbean is only able to accommodate 84,050 berths on its 38 cruise ships. Over the last decade, Carnival has made up at least half of the industries total revenue and has posted modest gains on the competition each of the past several years. The form of competition comes from pricing, destination offered, and ship attractions. Carnival holds the strongest position in the industry with an ever increasing global outreach and offers among the lowest prices in the industry. Carnival also differentiates itself from the competition by accommodating children with activities and amenities. Because of the sheer magnitude of Carnival’s fleet they are able to offer a very diverse experience across their different cruise lines. For instance, the Carnival ship “Dream” which travels to the Caribbean and
Bibliography: Carnival Corporation. (2010, March 3). Investor Information: Carnival Corporation & plc 2009 Annual Report. Retrieved March 3, 2010, from Carnival Corporation Website: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzcxNDQ1fENoaWxkSUQ9MzY4NTExfFR5cGU9MQ==&t=1 David, F. R. (2009). Strategic Management: Concept and Cases. Upper Saddle River: Prentice Hall. Dev, C. S. (2006, August). Carnival Cruise Lines: charting a new brand course. Entrepreneur , pp. 58-62. Krell, E. (2009, April 15). Retrieved March 2010, 3, from Business Finance Web site: http://businessfinancemag.com/article/grc-case-study-carnival-corporation-0415?page=0%2C4 Unknown. (2009, 01 08). Visionary Concepts for Vessels and Floating Structures. Retrieved 03 05, 2010, from IVT: http://www.ivt.ntnu.no/imt/courses/tmr4850/Visions%202009/BA1-Scenarios.pdf