Carnival Cruise Lines: Exploiting a Sea of Global Opportunity

1122 words 5 pages
Question 1,2,5 in International Business Environments and Operations, Fifteenth Edition

Carnival Cruise Lines: Exploiting a Sea of Global Opportunity.

Summary: The case has given us the definition of Cruise, as well as the history of Cruise. Nowadays, there are 2 biggest companies: Carnival and Royal Caribbean nominated the Cruise Industry with total of 72% of the market. By far, Carnival is the bigger than Royal Caribbean. Furthermore, the case goes deeper about the company – Carnival; for example; history, business background and business potential of Carnival. Carnival has done very well In International Water. Company has flags of convenience of about 30 different countries. Legally, Carnival is a Panamanian company, even though
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After WW II, the US controlled most of the International Water and had very huge number of ships in the world. In addition, in that time, ships were very cheap (because after wars, ships didn’t have much use) so “Carnival began by buying a retired liner at a good price, refurbishing it in bright colors, rigging it with bright lights, and installing discos and casinos”. Supply has been checked. Now, let’s have a look at demand. People always wanted to travel, to see the world (or see their friends or relatives in other religions). According to Maslow’s hierarchy of needs, on the thirds floor Love/Belonging, we can see friendship and family and also the second floor Esteem, human needs travel. Demand has also been checked. Time after time, Carnival added more brands in its system, more ships, more fleets, more regions, more professional and then more profit were made.

5. What threats exits to the future performance of the cruise-line industry and, specifically, of Carnival Cruise Lines? If you were in charge of Carnival, how would you (a) try to prevent these threats from becoming reality and (b) deal with them if they were realized?
In Cruise-line industry generally and Carnival Cruise Lines specifically, there are some threats which have to face and deal with: firstly, the health problems of passengers. It happened in the past, in 2006 where a virus was in cruise caused financial losses because the whole liner service had to stop and