strategy evaluation of carnival corporation-plc

Strategy Evaluation of

Name of the Members RollSazia Tarannoom 1407006Rawful Al Amin 1407052

Konok Kumar Mondal 1407016Ahmed Istiaq Murad 1407076

Md. Mamun Ali Biswas 1406093

Submitted By:Group - 07 (INFINITY)

I. Company OverviewII. Mission & Vision StatementIII. Internal AssessmentIV. External AssessmentV. SWOT AnalysisVI. RecommendationVII.Conclusion

PRESENTATION OUTLINE

COMPANY OVERVIEWHEADQUARTERS Miami, Florida, and London, England

CRUISE BRANDS Carnival Cruise Lines (24 ships) Princess Cruises (17 ships) Holland America Line (15 ships)Costa (14 ships) P&O Cruises (7 ships) Cunard (3 ships) Seabourn (6 ships) AIDA (10 ships) P&O Cruises Australia (4 ships) Iberocruceros (3 ships)

TOTAL NUMBER OF SHIPS

102

EMPLOYEES WORLDWIDE:

Approximately 90,000

CRUISING AREAS: Alaska - Bahamas - Baltic – Bermuda- Caribbean-Hawaii - Mediterranean – New England - North Cape – Panama Canal -South America - South Pacific and other worldwide destinations

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BRIEF HISTORY• Carnival Cruise Lines is one of the largest and most successful cruise

line company in the world. The history of Carnival Cruise Lines started in 1972. The Chairman and CEO, Ted Arison, purchased an ocean liner for $6.5 million. The ocean liner was named Mardi Gras and included in the deal was another ship called the Carnivale. In the beginning, Carnival experienced a deficit due to fuel and ship concerns. With the design of on-board activities, entertainment, an enhanced marketing approach, and travel packages, Carnival began seeing their successes and revenue grow. Carnivals' prices were competitive with other travel packages, which was a major factor in their success. Slowly, Carnival began buying out their competitors and adding more cruise ships to their company. Carnival Cruises became an industry leader with the finalization with Princess Cruises, which allowed Carnival to become a global cruise line.

Carnival Corporation & Plc’s vision is to empower and enable Carnival Corporation & Plc employees to deliver the best vacation experience for Carnival Corporation & Plc guests, thereby generating superior returns for Carnival Corporation & Plc shareholders and enhancing the well-being of Carnival Corporation & Plc communities

VISION STATEMENT

Carnival Corporation & Plc’s mission is to take the world on vacation and deliver exceptional experiences that appeal to a large variety of consumers, all at an outstanding value. We believe our multi-brand strategy is essential to achieving our mission and maintaining our leadership positions. Our ten unique brands with worldwide sourcing of guests and diverse itinerary options allow us to expand our offerings to our past guests, while continuing to grow our business through the acquisition of new guests in established and emerging markets. Our success also depends on, among other things, our ability to exceed the expectations of our guests by providing them with a wide variety of exceptional vacation experiences.

MISSION STATEMENT

INTERNAL STRENGTHS

•Largest cruise company in the world• Passenger Capacity increased drastically• Fuel consumption has been reduced 21% since 2007•Carnival Corp & Plc largest cruise ship dry- dock repair facility• Carnival Cruise Line operates from 19 homeports in North America, which is more than Carnival Corporation & Plc competitors.•Serves 8.5 million guests a year•Possesses 10 distinct cruise lines.

INTERNAL WEAKNESSES

•Accounts for 30% of disappearances of guests at sea since 2000.•During 2012, $28 million was spent for ship incident- related expenses that were not covered by insurance.• Sales of cruises mainly booked through travel agents cost 10% of sales fees and additional commissions.•Full brand recovery from Costa Concorida tragedy will take 2-3 years, extra marketing would come in three areas: funds directed at travel agents, including cooperative advertising; social media; and possibly more TV ads.

EXTERNAL OPPORTUNITIES

•Long term expansion in Asian Vacation Markets, increased prosperity and size of Asian countries• Annual passenger compound annual growth rate of 7% from 1990 – 2017. •Europeans and Australians have more vacation days a year than North Americans (4 weeks paid vacation).•Global travel and tourism industry is expected to grow approximately 2.8% each year.•Cruising is the fastest growing segment of the travel industry.

EXTERNAL THREATS

•A 6.3% increase in fuel prices, since February 2013.•Increasing cost of ship building every year.• Safety and security of travel- terrorism, drug attacks, vessel seizures.•Currency risk- the US dollar decreased 0.3% in Feb. 2013.•USA unemployment rate is currently still high at 7.40%.•Global warming is causing the oceans to absorb a great deal of extra heat (up to 90%). • Increase of corporate tax.

COMPETITORS

• North America: Royal Caribbean, Disney Cruise Line, and Norwegian Cruise Line

• Southern Europe: Mediterranean Shipping Cruises, Louis Cruise Line, Festival Cruises, and Spanish Cruise Line

• Germany: Festival Cruises, Hapag-Lloyd, Peter Deilmann, Phoenix Reisen, and Tranocean

• United Kingdom: My Travel's Sun Cruises, Fred Olsen, Saga and Thomson

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Strengths:• Largest cruise line in the world• Higher market shares than competitors• Global and International presence• Strong consumer demand in Europe• High value entertainment on ships• Cost advantages over most of their competitors• High customer satisfaction• Affordable vacation packages for families

SWOT ANALYSIS

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SWOT ANALYSIS

Weaknesses:• Poor safety record• Bad publicity• Many people think cruises are too expensive • Need to advertise low “average” prices

SWOT ANALYSIS

Opportunities:• Cruise industry appeals to large demographic• Offer more destination route locations• Expand to Asian and African markets• Expand advertising by using different medias

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SWOT ANALYSISThreats:• Diseases• Weather• Tight competition with other cruise companies• Environment regulations• Increasing fuel prices• Cheaper vacation packages through competition

with hotels, airline travel, and car driving

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RECOMMENDED STRATEGIES FOR ENVIRONMENTAL CONCERNS

• Support Environmental Issues 

• Fuel Technology

RECOMMENDED STRATEGIES FOR OPPORTUNITIES

• Offer special discounts for repeat customers• Continue building relationships with travel booking

companies, especially online companies. • Expanding on social media marketing• Sending promotional emails• Continue to add more entertainment activities• Offer more destination spots to attract customers who want to

travel to different countries • Create a Referral Program • Create an alliance with an airline company

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PROGRAM DEVELOPMENT

• Make enhancements to emergency power capabilities, additional emergency generators and new fire safety technology.

• Carnival also needs to create procedures to communicate quicker with passengers to let them know what is happening.

• Create solar paneling on ships

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FEEDBACK IMPLEMENTATION

• Send customers who went on a cruise an email survey rating their satisfaction and experience. As a reward, give them a free drink ticket for any future cruises.

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CONCLUSIONAs Carnival Corporation and Plc continues to improve the safety and security among our cruise brands throughout the world, we hope our consumers will regain the trust of the cruise industry by cruising with us. The corporation needs to focus on the internal and external factors in an effort to further improve its operation and ultimately the return to the shareholders of the company.