Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Do you really want to delete this prezi?
Neither you, nor the coeditors you shared it with will be able to recover it again.
Make your likes visible on Facebook?
You can change this under Settings & Account at any time.
Carnival corporation & PLC
Transcript of Carnival corporation & PLC
Carnival Corporation & PLC
Presented to : Dr. Sanya El Galaly
designed by Péter Puklus for Prezi
Carnival Cruise Lines started in 1972.
Formed by cruise industry pioneer Ted Arison
Began buying out their competitors
2003- Carnival merged with P&O Princess Cruises to form Carnival Corporation and PLC to become the largest cruise ship company in the world
“Our mission is to take the world on vacation and deliver exceptional experiences through many of the world best known cruise brands that cater to a variety of different geographic regions and lifestyles, all at an outstanding value unrivaled on land or at sea”
a- Global Cruise Brands:
• North America: 62 ships
• United Kingdom: 10 ships
• Germany: 10 ships
• Southern Europe: 14 ships
• Spain: 3 ships
• Australia: 3 ships
b- Global Tour Company: Alaska
Family in 2014
To be the leading vacation company in the world in the multi-night vacation industry
Business: Growth continuity - New segments - Quality - Innovative ships - Safety Measures
Financial: Cash Flow - Internal fund to all capex
Corporate: Directional Growth Concentration strategy
(Horizontal integration - Vertical integration)
Business: Competitive lower cost and differentiation Strategies
Functional: Distribution channels- Consumer market - Pricing
Products & Services
In January 2012, 32 people died after the captain steered the cruise liner into rocks after taking an unauthorized route
In February 2012, fire broke out on board, 4200 passengers plus crew were stranded in the Gulf of Mexico
Affect their mantra " THE SAFEST MODE OF TRANSPORTATION"
“It is our vision to continue to be the world's #1 vacation provider at land and at sea”.
Profit Center concept
Headquarter in Miami, Florida & London, UK
Friendly family-like atmosphere
Open door policy
Innovative and brand new ships
Marketing Campaign Slogan is"Fun"
Travel Agent and now mainly on the online booking
"Without a travel agent you are on your own"
• Applied R&D: Ship efficiency and innovation.
• Basic R&D: Upgrade Product lines and services to offer guests.
Over 9,2000 employees
"promote form within advancement strategy"
Trainings on shipboards and shore side
They source our shipboard officers primarily from Italy, UK, Holland, Germany and Norway
Complete physical exam
Internet centers on board
Automated reservation system
Strong Website and blog presence
Financial Statements Ratio Analysis
IT is the system of rules, practices and processes by which a company is directed and controlled
Balancing the interests of the many stakeholders in a company
Board of Directors
Thirteen members of which five are internal employees while the other eight are external hires.
Have certain qualifications and responsibilities
Non-Employee director are allowed to have shares in the company.
Stocks publicly traded.
• The management of Carnival Corporation is very strong.
Micky Arison is the Chief Executive Officer and Chairman of the Board of the Carnival Corporation.
The management team has been in place for several years
Have prior experience internationally in similar fields.
Largest cruise company
Fuel consumption reduction
High passenger capacity 8.5mm/yr
Owns 40% in Grand Bahams
Stagnant European cruise market
Low entry barriers in the Asian cruise market
High risk of substitutes
NI and revenues decreased
Loyalty programs downgraded of customers
The target customers for cruise companies are likely old and wealthy couples with high disposable income, or families with children who are willing to spend money for adventure on the open sea.
Misconceptions about the cost of going on a cruise prevent many households with low incomes from buying into the idea.
Rising cruise line industry.
US and Canada economic growth.
Promising Asian market.
Global passenger growth.
Millennials seeking exhilarating experiences.
In the United States, long-term and fixed interest rates are expected to rise in 2014 and beyond.
Stagnant European cruise market.
Natural Physical Environment
For all the seemingly inherent wastefulness of the cruise industry, many cruise lines are making a concerted effort to improve their waste streams, cut down on their fuel consumption, and generally reduce their impact on the earth.
Recently, Carnival, docked in the spotlight when it received the
New Economy's Clean Tech Award for Best Marine Solutions Company
. The award recognized Carnival's decision to install a new exhaust filtration system on its North American ships, at an estimated cost of $180 million.
Increased regulations are issued by the Coast Guard, U.S. Department of Health, and Federal Maritime Commission.
Periodic political tensions which occur in cruise areas cause cruise competition to intensify in safe waters until tensions cease.
Once considered a vacation for the elite, cruises are attracting a much more diverse group of passengers including young couples and families.
People in developing countries likely perceive cruise vacations as unneeded luxuries.
21.7 million passengers will take cruises in 2014, compared to 21.3 million in 2013.
The fastest growing cruise source markets are Brazil 84.8%, Australia 130.3% and Scandinavia 184.6%.
24 new ships in 2014-2015, expanding passenger capacity to 37,548.
By 2015 the fleet of CLIA members will total 410 cruisers. Over $8 billion will be invested in ocean going and river cruise categories.
North America is by far the largest cruise market globally, with a 55.1% passenger source share.
Royal Caribbean Cruises Ltd.
The world's second-largest cruise line.
Operates about 40 ships.
Carries about 4 million passengers a year to about 420 ports.
Operates land-based tours and expeditions.
TUI AG Company
Has the European travel business cornered.
Sells leisure travel packages and provides other travel services under some 200 brands in some 20 countries.
250 hotels in about 30 countries.
Hapag - Lloyd Cruises, a leading provider of discovery and luxury cruises to the German market.
TUI Cruises, a joint venture with Royal Caribbean Cruises.
Genting Hong Kong Limited Company
One of the world's leading cruise line operators, behind Carnival and Royal Caribbean.
Maintains a fleet of 15-plus vessels under the Star Cruises and Norwegian Cruise Line brands.
Has an interest in hotels in the Philippines.
Rising cruise line industry
US and Canada economic growth
Promising Asian market
Global passenger growth
Millennials seeking exhilarating experiences
Low buyer power
High entry barriers in American and European cruise markets
Internal Rivalry (High)
Marketing and pricing battles.
Heavy M&A activity.
Supplier Power (Moderate)
Carnival has relatively high bargaining power over its suppliers for fuel, ship construction and repair, and food and beverages. It pressures suppliers to offer the products at a lower price.
On the other hand, fuel is generally a consolidated industry with a limited number of suppliers, limiting Carnival Corporation’s influence.
Buyer Power (Low)
The increased access to information for customers via newspaper, TV, and the Internet has diluted the power of travel agents and consequently, consumers themselves.
Travel agencies cannot demand lower prices with less purchase volume.
Customers are widely distributed around the world and cannot establish a unified presence capable of minimizing Carnival’s influence as the largest cruise provider in the world.
Barriers to Entry (High)
Requires capital of approximately $1 billion.
Costs, on average, $400 million to build a ship.
Employs hundreds of sailors and crew that are trained for sea duty.
Brand recognition is very important in the cruise line industry, which means that it would take time for a new competitor to build an identity and reputation.
Threat of Substitutes and Compliments (High)
All-inclusive resort vacation.
Adventure vacation, such as a safari.
All-inclusive travel itinerary that allows them to visit multiple destinations within the same trip.
Relative Power of Other
Other stakeholders include employees and shareholders.
Employees of Carnival are compensated more favorably than those of competitors, making it less likely that employees will make the decision to leave for another cruise line.
Shareholders have invested money into Carnival, so they are going to influence final decisions and they have to be compensated with enough return to keep their investments in the company.
Porter's Five Forces Framework
Consumers can easily book their cruise trips on company websites by themselves, rather than see a travel agent.
Analysis of Strategic Factors
Review Current Mission
Concentric horizontal integration
Aquistions,mergers and allainces
pros :higher profit-higher customer loyalty and perfection attained
Cons : high risk
Getting involved in airline or motel business and other related fields
Pros: low risk and hight market share
Cons: may distroy the corporate's image
Stability-Pause/proceed with caution
pause until economy is more stable
Pros:improve company policies and stategies
Cons:decrease in profits
Stability-pause/proceed with caution is the recommended stategy ...why?
wait untill economy is stable
improve current activites
create exciting promotional programs
This strategy is the best as it considers both external and internal environment.
Increase marketing compaign
have diffrent price range available
Evaluation and control
A system should be developed to measure how quickly and satisfactorily customer needs are being met.
The system should also look at how the services can be expanded and improved
Setting a benchmark to compare itself within to evaluate its peroformance.
Compare current reuslts with planned goals to see if we need to maake any corective actions.