Carnival Cruise Case

In: Business and Management

Submitted By mkm9t3
Words 559
Pages 3
Case 16
Carnival Corporation

This case starts out by stating how the cruise line industry, specifically Carnival Corp., had survived the recession and even began to expand shortly after the recovery began. By reducing fuel consumption and expanding into the European market helped project the company through hard times. Since projections looked favorable, as only about 10 percent of Americans had been on a cruise before, the market was open for the taking. Having 98 ships in their current fleet (over 190,000 berths) gives them the ability to hold a large amount of customers. Although cruises didn’t always look as they do today, two events catapulted the experience on the open seas. The first was the TV show, Love Boat which dispelled any myths and the rising of women and disposable income. These two really played a role in kick starting the cruise line empire. A short description of the history is that Ted Arison had bought a vessel and converted it into a cruise liner. It was unsuccessful at first and had a hard time getting the right publicity. Soon enough after three years of losing profits, the ship began making money and they soon began expansion. This was due to the ships being at 100% capacity. By the 1990’s, the company had bought many more ships to add to their fleet, and had made huge leaps in industry. They found troubles through the Gulf war and the 9/11 terrorists attacks, but always seemed to come out on top of the current situation. The operating and corporate brands range from 10 different style cruises each having a unique feel and operation. Each of these are just small segments to the entire industry which had been projected to increase during the next few years. This increase currently was around 15.7%. The problem with the analysis was that they were using the entire population to configure the market. Advertising was a…...

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