MGMT 4210 Case Write-up #13 (Carnival case)

Carnival Corporation is the worlds largest cruise ship company, within approximately 50 of the cruising market. The company had focused on it one specific strategy do one thing and do it better than anyone else and bought a very successful result. Carnival had it particular strengths in the market, such as superior experiences, excellent services, good reputation, a variety of diversification, etc. The interesting thing is these strengths did make Carnival to be the first of cruising market, but definitely cant ensure their future success. One of the advantages of Carnival is it well-developed scale of business. As we all known, the scale of a business is very important, Carnivals scale is almost twice of its competitor and develop in nearly every market in cruising. It makes the company easier to enlarge the business and launch more new plan in different segment. Moreover, Carnival has reached below-industry-average costs and above-average revenue historically. This indicated Carnivals business activities and strategies did quite good in average and had a strong balance sheet, so that the customer would have greater confidence in buying their services. The founder, Ted Arison, made a very exceptional decision which was buying the ownership of Carnival Cruise Lines with 1 in cash and 5 Million in debt. After a decade, the value of Carnival Cruise was increased a lot and became one of the most popular world cruise line. From the above, we can see Ted Arsion is a very smart and foresight business-man. He made lots of decision in order to expand companys business, such as the acquisitions and launched new cruise line in different part of the world. After the combination with PO Princess cruises, the largest cruise line operator in the UK, leading Carnival to be the biggest cruise ship firm in the world. Carnival now includes 10 major brands across cruise markets in the United States, Europe, and Asia. However, Carnival had faced some critical issue in which to make