Carnival Cruise Lines
Managing in a Global Marketplace: Individual Case Study
Table of Contents
Carnival Cruise Lines was established in 1972 by Ted Arison. Over time, Carnival forged the concept of less costly cruises with shorter trips, making cruises a more viable option for a wider variety of vacationers. The company is currently based in Miami, Florida but has spread globally since its inception, impacting markets in North America and Europe (Daniels, Radebaugh, & Sullivan, 2009). Although Carnival brands have evolved over time to include other cruise options for their guests--such as luxury and port to port trips--the vast majority of their business is still attributed to the original brand of “fun ships (Applegate, Kwortnick, & Piccoli, 2006).” This paper will analyze the case study, Carnival Cruise Lines: Exploiting a Sea of Global Opportunity in an attempt to explore just how Carnival was able to grow and market themselves into a successful international company. Specifically, topics of interest will include the dominance that Carnival has and will possesses through proprietorships in multiple positions across the world. Discussion
Arison’s concept of the “fun ship” revamped and changed the face of the cruise industry from being by and large a vacation option for the wealthy to a source of retreat and entertainment for a broader spectrum of middle class individuals (Daniels, Radebaugh, & Sullivan, 2009). What began as a small independent operation has matured into twelve cruise ship brands owned and operated by Carnival Corporation (Applegate, Kwortnick, & Piccoli, 2006). The original Carnival cruise line to this day encompasses more than just a ship; rather, its ships are most closely comparable to “Las Vegas on water.” These ships are known for entertainment offerings which include casinos, shopping centers, theme dinners, weight and exercise rooms, activities, and of course bars (Daniels, Radebaugh, & Sullivan, 2009). Carnival Corporation has expanded into a conglomerate and is currently the leader in the cruise industry, controlling the largest portion of the cruise line market and catering to 2 million passengers each year. They have reached success through utilizing multiple brands spread across the world. They offer cruises to just about every area of the world, including Antarctica (Daniels, Radebaugh, & Sullivan, 2009). Having multiple locations and cruise lines is advantageous for a number of reasons. Most importantly, it provides access points in many regions of the world giving vacationers and cruise patrons the option to explore a variety of locations on their cruises. As a matter of fact, Carnival brands service the majority of the world’s cruise goers through operating in target markets including North America, Great Britain, France, Spain, Germany and Italy (Daniels, Radebaugh, & Sullivan, 2009). Each brand controls its own niche and is differentiated from the other subsidiaries controlled under Carnival Corporation. Each line offers themes based on its geographical location or destination point. Also, there are differing levels of amenities and associated pricing levels offered. This allows Carnival Corporation to capture a larger portion of the market through differentiation. What was once seen as strictly an activity for rich vacationers is now available to a wider range of individuals (Daniels, Radebaugh, & Sullivan, 2009). The concept of the cruise industry lends itself to international business and Carnival has certainly capitalized on the phenomenon. This advantage gives the company both human and non-human resources from around the globe. Their scope of business also provides Carnival with the capability to transfer assets to sites where they are most valuable at the time. For example, the company often moves their cruise ships to wherever they will service the...
Bibliography: Applegate, L. M., Kwortnick, R. J., & Piccoli, G. (2006). Carnival Cruise Lines. Harvard Business School , p 32.
Carnival. (2010). Retrieved May 22, 2010, from Carnival Website: http://www.carnival.com/
Carnival Web Site Rates High. (2009, July 29). Retrieved May 22, 2010, from Cruise Industry News Website: http://www.cruiseindustrynews.com/cruise-news/3017-72909-carnival-web-site-rates-high.html?q=carnival
(2009). Carnival Cruise Lines: Exploiting a Sea of Global Opportunity. In J. D. Daniels, L. H. Radebaugh, & D. P. Sullivan, International Businiess 13e: Environments & Operations (pp. 24-28). Upper Saddle River, NJ: Prentice Hall.
Please join StudyMode to read the full document