Carnival Cruise Lines
Carnival Cruise Lines is one of the most successful cruise lines in the world. They have taken an industry that once only catered to the elite and turned it into a possibility for people of varying economic means all over the world. In their quest to provide a service with mass appeal, Carnival has become the very definition of international business. The cruise line industry has seen a substantial amount of growth in the last fifty years. Several global forces have contributed to this growth. There are two types of global forces: controllable and uncontrollable (Ball, Geringer, Minor, & McNett, 2010). Uncontrollable forces, also known as external forces, are …show more content…
Carnival has addressed this problem by offering three and four day cruises which are more affordable. They offer cruises that are all-inclusive; these types of vacations appeal to people on a fixed budget because the likelihood of unforeseen expenses is lessened. Carnival offers cruises that sail out of more ports, which allows cheaper access to the cruise for more people since they no longer have to fly to the cruise departure point (Global Demand for Vacation Cruises to Surge, 2012). Additionally, cruise lines are offering more on board amenities such as kids clubs which allow all members of the traveling party the opportunity to enjoy their vacation.
Despite all of the success that Carnival Cruise Line has experienced, catering to a primarily American clientele while being registered in a foreign country creates situations that can affect the operations of the cruise line. Fundamentally, forces in international companies are the same as those in domestic countries. However, operations may be affected differently due to valuation, assessment, and inter-relation of these forces (Ball, Geringer, Minor, & McNett, 2010).
A good example of forces having different values and affecting operations is Cuba. Carnival is a registered company of Panama which has no apparent issues with Cuba which would allow for port stops in Cuba and could be mutually beneficial for Cuba and Carnival. However, due to the majority of cruise passengers being