Carnival Corporation: A Comprehensive Analysis Essay Sample
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Carnival Corporation: A Comprehensive Analysis Essay Sample
Vision Consulting has conducted a thorough evaluation of Carnival Corporation. Our ultimate goal in conducting this evaluation is to provide recommendations to Carnival Corporation in order to aid the company in obtaining a competitive advantage in the market, as well as providing strategies to aid the firm in outperforming its competitors.
Our team has examined the mission statement of the company, as well as current strategies, goals and visions that the company currently has in place. Additionally, we conducted a thorough internal and external audit analysis of the company. This analysis includes the opportunities and challenges facing the company, as well as the strengths and weaknesses that the company currently possesses. Below, you will find an overview of Carnival Corporation, including a brief business scope. You will also find the internal and external audits conducted by our firm.
After thorough consideration of the internal and external audit of Carnival Corporation, Vision Consulting determined several opportunities available to the company. You will find these opportunities listed below. It was then determined which opportunities available to the company could have the possibility of implementation. Those opportunities which our team felt were viable objectives were considered as possible company objectives. You will find the “pros” and “cons” of each objective listed below in the “Strategic Objectives and Relative Evaluations” section.
The “pros” and “cons” of each objective were evaluated. Vision Consulting reviewed the objectives and has recommended several of the objectives for strategic implementation within Carnival Corporation. The strategic implementation of each objective recommended for adoption is discussed in the “Strategy Implementation” section. Also included is a balanced scorecard for the corporation.
Carnival Corporation Mission Statement
“Our mission is to deliver exceptional vacation experiences through the world’s best-known cruise brands that cater to a variety of different lifestyles and budgets, all at an outstanding value unrivaled on land or at sea.”
Evaluation of Mission Statement
A detailed evaluation of the company’s mission statement was conducted to access the effectiveness of the mission statement. The following factors were considered:
* Does the mission statement indicate a method of value creation?
Yes. The mission statement indicates that the company will create value by delivering exceptional vacation experiences, catering to a variety of lifestyles and by being the low cost provider.
* Does the mission statement indicate the company’s principal product or service?
Somewhat. The mission statement indicates that the company “delivers exceptional vacation experiences” but does not indicate that the primary service is a cruise. However, the word “cruise” is mentioned within the statement. The mission statement makes it apparent what the primary business of the company is.
* Does the mission statement address the geographical area of service?
Somewhat. The wording of the mission statement makes it appear that the company is already well-established and well known around the world, leading the reader to believe that the company services the whole world. Specific geographical areas are not mentioned.
Company Objectives, Strategies & Core Competencies
The market strategy of Carnival Cruise is to create more valuable customer relationships and add value by providing quality cruises. Carnival Cruise lines appears to be gaining market share by promoting the ship as a destination vacation and by meeting the diverse financial needs of their customers. The company’s customer retention continues to grow and improve, and Carnival Cruise Lines has had positive successes in attracting additional customers.
Carnival Cruise Lines continues to benefit from their diversified business mix. A new objective of the company is the commitment to making the cruise experience exciting for their customers. Carnival Corporation is also committed to providing satisfaction and value to its current and past customers with the expectation that new customers will arrive to board the Carnival Cruise ships and experience the “Fun Ship” first hand.
One of the company’s most important strategic goals is to maintain their leadership and market share in the cruise line market. Objectives in order to maintain their leadership in the market are:
* To meet the specific needs, and cater to, individual customer segments. (Based on customer demographics.) Carnival Cruise customers profile showed that approximately 30% were between the ages of 25 and 39, with household incomes of $25,000 to $50,000. This is the target market for Carnival Corporation.
* The company is planning to invest over $6 billion in new ships by 2005.
* To maintain satisfaction rates with current customers.
* Uphold the “Fun Ship” theme, which has been present since the emergence of the company.
Strategies currently in place to meet objectives:
* Contemporary, Premium and Luxury vacations are in operation to cater to the specific desires of their diverse customer base.
* Company is maintaining working relationships with ship builders and suppliers, for the purpose of securing contracts for new cruise liners.
* Continue with current marketing strategies to promote Carnival as the “Fun Ship” and to aim advertising towards the company’s target market.
The company’s product positioning is comprised of three segments with different passenger demographics, passenger characteristics (including income level), and growth requirements. In order to exceed these segments, Carnival Cruise Lines must to obtain certain key skills or competencies, that will increase their customer relationships and add additional value to their customers.
In order for a skill to be considered a core competency, the skill must meet three tests: Customer value, competitor differentiation and extendibility. The following skills possessed by Carnival Corporation are considered core competencies:
* All inclusive vacation Packages. The company uses three, four, or seven day moderately price cruises to fit the time and budget constraints of their middle class customers.
– Shorter cruises cost less than $500 per person (depending on accommodations).
– Longer cruises cost up to $3,000 per person.
* Extensive marketing and public relations with independent travel agents to help promote cruises and further their marketing strategies.
* Carnival Corporation is well-known for their exceptional customer service, on and off of the cruise. For example, it has been noted by customers that the maids on the ship are so attentive, if you leave for room for just a minute, the bed will be turned when you return.
Strategies currently in place to meet objectives:
* Contemporary, Premium and Luxury vacations are in operation to cater to the specific desires of their different customer segments.
* Company is maintaining working relationships with ship builders and suppliers.
* Continue with marketing strategies to promote Carnival as the “Fun Ship.” Company heavily markets holiday promotions.
* Several projects are underway with the Cunard and Costa cruise lines to provide the largest wellness and fitness centers on a cruise ship. This is an undertaking not yet done by main competitor Royal Caribbean.
Carnival Cruise lines is in the business of providing guest with the same experience of a land vacation while at sea. Offering exceptional vacation experiences at outstanding prices has drastically contributed to making Carnival Cruise lines the most profitable company in the leisure travel industry.
Operating under the Carnival Cruise Lines are 8 different extensions of cruise companies. Which are the following: Carnival Cruise Lines, Princess Cruise, Holland American Line, Seabourn Cruise Lines, Windstar Sail Cruise, Cunard, and Costa Cruise. Together, these member lines share a commitment to quality and value, offering cruise vacations that appeal to a wide range of lifestyles and budgets and sail to some of the world’s most exciting destinations.
Carnival Cruise Lines is the most popular and most profitable cruise line in the world. The Carnival Cruise Lines are known as the “Fun Ships” designed to meet your all around needs in enjoyment and excitement. Carnival ships cruise to destinations in the Bahamas, Canada, the Caribbean, the Mexican Riviera, New England, the Panama Canal, Alaska, and Hawaii with most cruises ranging from 3 to 7 days. The typical guest aboard these ships are vacationers that love to have fun and like taking family vacations where everyone can find something to do. Carnival Cruise Lines fit more into the contemporary segment of the cruise market.
Holland American Line is the undisputed leader in the premium cruise sector. The premium cruising segment is serviced by Holland American lines and it is designed to appeal to the more affluent customers. Holland is positioned to the higher-income travelers with cruise prices averaging 25% – 35% more than similar cruises.
Seabourn Cruise Lines has 3 suite ships in operation: Pride, Spirit, and Legend. Seabourn Cruise lines offers passengers with the highest level of personalized service. Each guest aboard these ships experience having their own personalized staff member at there beckon call. They have award winning service. The typical guest that vacations aboard Seabourn ships are well seasoned travelers who want the “best of the best”. They tend to avoid larger ships and are frequent guest at exclusive hotels and resorts. Seabourn services the ultra-luxury market with destinations in South America, the Mediterranean, Southeast Asia, and the Baltics.
The theme of Windstar Cruise is “180 degrees from Ordinary”. This line of cruise ships is in the business of creating a romantic atmosphere of ship sailing. Windstar is a family of 3 fleet sailing ships that are all motor-sail-yachts; Wind Song, Wind Spirit, and Wind Surf. The typical guest aboard these yachts are contemporary cruise vacationers, 1/3 of whom are 1st time cruisers. They sail to exotic and intriguing destinations. Windstar Cruise services the specialty sailing cruise segment.
Cunard is a part of the luxury segment of cruising. Cunard’s famous fleets of floating palaces have reined the seas, representing the pinnacle of maritime achievement and the quintessence of luxury travel. Guest that vacation with Cunard’s lines of cruises are those that love the sea and relish traditional elegance. They are typically well traveled and have the leisure to indulge in season long sojourns to exotic realms. More than half of Cunard’s guests reside outside North America, particularly in Britain and Europe.