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Carnival Cruise

.. al is known for Carnival Destiny, the largest cruise ship in the world. The square tonnage is 101,353, which is over 30,000 more than any other ship in Carnivals fleet. It can hold up to 2,642 passengers with double occupancy. 2.

The Fun Oriented Philosophy is there to keep everyone involved. There are various activities to keep young and old alike entertained. The ship has been designed to cater to everyones interests. 3. Not everyone wants to have to dress up to go to dinner on a cruise.

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The non-formal dress setting keeps the atmosphere light and happy. People do not feel the need to be embarrassed, and Carnival has gotten great response to it. 4. There are six new ships under construction for Carnival. These includes Paradise, scheduled to be released by the end of 1998; the Carnival Triumph, which will be larger than the Carnival Destiny; The Triumph will be released by early 1999; the Carnival Victory is scheduled to be released by summer 2000.

5. Who wants to be on a cruise and sit in their room all day? Carnival ships are fully equipped to handle the entertainment of all the passengers. With casinos, shopping centers, weight and exercise rooms, activities, bars, lounges, ballrooms, etc. there is more than one way to tickle your fancy. 6. The advertising team for Carnival is doing its job well for it leads it competitors in advertising and promotion. The Carnival Cruise Line is a common name because of such advertising and promotion efforts.

7. One thing that is amazing is the fact that Carnival sails at almost 100% capacity during all of its trips. The ship is almost always full, which means that they are generating incredible revenues. WEAKNESSES 1. Carnival has only tapped 10% of the market. 2.

The cruise line is only discounted during the off season. This discourages people to use Carnival during the busy season because they can not get a reduced rate. 3. The fact that Carnival is usually at a 100% capacity is good news, but there is always the risk of overbooking. If this should happen, Carnival would need to pocket out some money because of unhappy customers.

4. There are only so many ports of call that Carnival can go to. The ships all have a specific route that they follow, and some people do not want that specific route. They want to be able to hit several different ports of call that may not be offered by one cruise. CARNIVAL CRUISE LINES EXTERNAL MATRIX EXTERNAL MATRIX OPPORTUNITIES 1.

Most people want to get away for awhile. They want a unique vacation that they will remember forever. Instead of having the hassle of trying to drive across the country to spend a couple of days somewhere, they can take a week off and not have to worry about anything. Carnival takes care of all their travel worries including airfare, hotel, food, and entertainment accommodations. 2.

The pricing of the Carnival Cruise Line is very moderate compared to other Cruises. It ranges from $75 to $100 a day, where the competitors range from $75 to over $1000 a day! 3. It is truly a company that can take care of all of a travelers needs. Carnival Corporation owns five cruises, a chain of hotels, an airline, and a bus line. Travelers can be flown from where they live, have a bus deliver them to the cruise, and be able stay in a hotel all through Carnival.

4. Ever since the popularity of the movie Titanic, people have gone wild wanting to take a Trans-Atlantic Cruise. If Carnival can cash in on this, they could make a tidy profit. 5. The idea behind Carnival is the Fun Ship philosophy. They want people of all ages enjoy their cruise.

They have everything from Nautilus workout rooms, to indoor and outdoor pools, casinos, shopping centers, exciting ports of call, etc. From the youngest child to the oldest person, there is something for everyone on Carnival Cruise Lines. THREATS 1. There are various competitors in the market of cruise lines. With so many to choose from, it is not always easy to be able to decide what is best for the dollar.

This is where Carnival needs to differentiate itself from all the rest. 2. There are so many other vacation spots that require less planning. For example people could go to the beach, take a bus tour across the country, go to Disney World, etc. People usually regard cruises for the rich, or for those people who do not want to take the time to plan their vacation out. 3.

There is only a limited target audience that Carnival can reach due to its cost. For $75 a day and higher, there is only a certain portion of the population that would consider a cruise. 4. When serious mishaps occur, it could spell disaster for a cruise line. It has yet to be determined the extent the fire aboard Ecstasy has had on business. IE MATRIX IFE Total Weighted Score = 2.91 Strong Average Weak 3.0 to 4.0 2.0 to 2.99 1.0 to 1.99 I II III IV V VI VII VIII IX Cell I = Grow and Build Cell II = Grow and Build Cell III = Hold and Maintain Cell IV = Grow and Build Cell V = Hold and Maintain ** Cell VI = Harvest or Divest Cell VII = Hold and Maintain Cell VIII = Harvest or Divest Cell IX = Harvest or Divest TOWS Matrix Strengths -S 1. Largest cruise ship in the world.

2. Fun oriented philosophy. 3. Non-formal setting. 4.

5 new ships to be launched by 2002. 5. Casinos, shopping, entertainment on board. 6. Leads competition in advertising and promotion 7.

Ships sail at 100% capacity. Weaknesses – W 1. Only 10% of the market has been tapped. 2. Only discount during off-seasons.

3. Risk of over capacity. 4. Ports of call limited. Opportunities – O 1.

Unique Vacation which is rising in popularity. 2. Moderately priced compared to competition. 3. One stop shop for vacations.

4. Trans-Atlantic Cruise. 5. Something for Everyone. SO -Strategies 1. Largest cruise ship in the world provides something for everyone (S1, S5, O5) 2.

Use Advertising and promotion to promote a new Trans-Atlantic Cruise (S6, O4) WO – Strategies 1. Channel rising popularity of the cruise vacation to tap more of the market segment (W1, O1) 2. Use Trans-Atlantic cruise idea to provide more ports of call (W4, O4) Threats – T 1. Numerous competitors 2. Other vacationsLimited target audience due to cost.

3. 1995 fire aboard the Ecstasy ST -Strategies 1. Use advertising and promotion to eliminate customers fears (S6, T4) WT – Strategies 1. Fire aboard Ecstasy will cause a drop in capacity (W3, T4) 2. Discount during the cruising season (W2, T3) GRAND MATRIX ANALYSIS Carnival Cruise Lines is positioned in Quadrant I which means it is in an excellent strategic position. Firms in this quadrant should continue their concentration on market penetration and market development. In Carnivalfs case, they should try to tap into the 90% of the untouched market.

Firms in Quadrant I can afford to explore external opportunities aggressively. This means forward, backward and horizontal integration strategies are all possibilities. Carnival should try horizontally integrating some of the smaller companies that are competing for the market. Carnival Cruise Financial Ratios INCOME STATEMENT DATA CARNIVAL CRUISE LINES RECOMENDED STRATEGIC PLAN Three Strategies Used: Market Penetration Horizontal Integration Concentric Diversification MARKET PENETRATION Carnival Cruise Lines should seek a market penetration strategy. With this strategy, Carnival can use one of its major strengths.

It can use its advertising and promotion strength and try to tap into more of the potential market. HORIZONTAL INTEGRATION Carnival Cruise Lines should seek a horizontal integration strategy. By seeking ownership or increased control over competitors, Carnival could gain an even greater market share. With Carnival being so strong in the market, they can afford the minor risk of buying out competitors. CONCENTRIC DIVERSIFICATION Carnival Cruise Lines should seek a concentric diversification strategy. Carnival should consider getting more involved in the airline and motel business either by buying out such chains or by getting involved through a joint venture.

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