Carnival Corporation: Business Strategy, Analysis, and Recommendations

This report provides a detailed analysis of Carnival Corporation's business strategy. It begins with an overview of the company's history and evolution, including key events and milestones. The report then examines the company's market environment, focusing on the competitive landscape and the five forces impacting its performance. A significant portion of the report is dedicated to analyzing Carnival's strategic choices, including its corporate strategies and how they have evolved over time. The report assesses the impact of these strategies on the company's financial performance, including both ticket and onboard revenue. Finally, the report concludes with a set of recommendations for Carnival Corporation's CEO, focusing on strategies for continued growth and improvement, such as expanding social media marketing, developing referral programs, and exploring new revenue streams like solar panel implementation and enhanced safety measures. The report draws upon a range of sources, including academic journals and industry publications, to support its analysis and recommendations.

Running head: INDUSTRIAL REVOLUTION
Assessment 1- Individual report
Name of the Student
Name of the University
Author Note

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Question 2:
2.1 Carnival Corporation is operating their business functions form a long period of time. It has
been observed that with the help of proper business strategy it has become easy to improve the
business objective. Carnival has grown their business rapidly by acquiring all the other cruise
lines. It can be stated from the case study that Carnival is working effectively within the market
environment. Carnival has expanded the business functions to acquire all the cruise lines. The
key motive is to improve the performance effectively by initiating proper efforts and using
creative marketing campaign. Moreover it is important to ensure that proper relation is
maintained with the customers for managing the wide range of the services. Thus it can be stated
that in order to expand the business it is important to implement new technologies for attracting
customers. The driving strategy that is identified within the organization is the initiative to drive
both ticket and onboard revenue. This has improved the financial performance and also enhanced
the business performance.

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The above diagram is represented for the purpose of understanding the five forces that
has the potential to impact the performance of Carnival Corporation & plc. It has been observed
that there are several cruise lines that offer same services towards the customers. The rivalry
needs to be reduced within the market so that it becomes easy to improve the performance of the
business. However it has been observed that within a short period of time several cruise lines
were acquired by the Carnival Corporation & plc.
2.2
Date Key event Analysis
1972 Carnival was founded by the
entrepreneur
The Carnival corporation was
started in the year 1972 in a
secondhand ship.
1980 First bespoke cruise ship The firm commissioned the
first bespoke cruise ship. This
started service in late 1982.
1982 bespoke cruise ship started the
service
The firm started its
functioning with this cruise
ship.
1987 Carnival as the world’s most
popular cruise line
Carnival became the world’s
most popular cruise line.
Around $400 million was
raised that led to execution of
the next phase of company.
2015 Working with 24 ships By the year 2015 it has been

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observed that the Carnival
became the largest firm to
have 24 ships.
1997 Carnival corporation was
taken to the European market
Arison aims at moving the
firm into European market for
having a better customer base.
2003 After the death of Ted Arison
he business was taken by
Micky
Micky worked with the
Carnival in place of Ted
Arison and managed all the
business functions.
2007 Carnival agreement with
Spain’s largest travel company
Carnival started the agreement
with Spain’s largest travel
company for expanding the
business.
2006 Entered in Chinese market Carnival became the first
cruise line to enter the Chinese
market.
2.3 Carnival cruise line has initiated the business strategy in such a way that it becomes easy to
improve the business functionality. The main strategy that was adopted by Carnival cruise line is
to offer better value and offers towards the sensitive customers. The major strategy included
operating business at over 100% capacity, expanding the fleet and offering entertainment. In
addition to this, Carnival also focused on offering entertainment towards the customers for the

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purpose of gaining a better place in the market. The Carnival Corporation offers a wide range of
boats towards the customers. This has helped in gaining a better customer base. Moreover
Carnival corporation is the world’s largest multiple night cruise company. Due to wide range of
features offered by Carnival cruise line, it has been observed that better competitive market can
be obtained. The Carnival cruise line has also expanded their business strategy for gaining a
better control over the different parts of the world.
2.4
Corporate strategy choices Grading Color
Reducing operational costs Green
Compressing boats size for maximizing ports
access
Green
Speed increasing Amber
Initiating proper marketing strategy Green
2.5 Carnival cruise line has generated several strategies for the purpose of attracting a better
customer base. In order to improve the business financial growth it has been observed that the
company focused on initiating both ticket and onboard revenue. This strategy has enhanced the
performance effectively and it is expected that the return on investment will be double digit
return. Thus it can be concluded that with the help of proper strategy it will become easy to
improve the overall financial condition of the market. Moreover in order to make a certain place
in the market, Carnival has designed several market campaigns for attracting new cruise

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customers. Thus it can be stated that with effective financial strategy it becomes easy to improve
the overall performance of the organization.
2.6 Carnival Corporation has gained a huge market in the past years. Hence there is a need to
ensure that the growth is continued similarly in the upcoming years. Thus there is a need to have
proper recommendations for the CEO to improve the business strategy. The lists of possible
recommendations are discussed below:
 Offering special discount towards the old customers
 Expanding the social media marketing strategy for attracting new customers
 Creating an effective referral program
 Creating proper alliance with airline companies so that it can attract better customer base
 Offering more destination sports towards the customers for attracting them
 Developing Solar panel in ships
Apart from this it is also important to enhance the way services are offered towards the
customers. It is important to make proper enhancement to emergency power capabilities so that it
becomes easy to provide proper safety towards the customers. In addition to this Carnival
corporation also needs to develop proper procedures for communicating quickly with the
passengers for letting them know about the different activities. For the purpose of improving the
overall performance and services of the Carnival cruise line it is important to initiate a feedback
procedure that will help in collecting data from the customers. Customers will be allowed to
generate effective feedbacks about their experience. This will improve the way facilities are
provided towards the customers. Thus it can be stated that with certain features it will become
easy to improve the Carnival cruise features.

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Bibliography
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83.
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Implementation of Porter’s Generic Strategies to Gain Firm Performances.
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