Strategic Management of Carnival Corporation Coursework

Strategic Management of Carnival Corporation - Coursework Example The clear vision she has nowadays for the company is one that highlights the appeal to people, i.e. the "wow factor", "Wow,' I think that's what today's carnival is all about, the wow effect" (Keefe et al., 2006, p.11). A vision of Carnival's present and future that is also sustained by the company's outlined mission and objectives. As identified by Carnival's management the company mission "is to deliver exceptional vacation experiences through the world's best known cruise-brands that cater to a variety of different lifestyles and budgets, all at an outstanding value unrivaled on land or at sea." (Keefe, 2006, p.8). A statement, which illustrates Carnival's customer- and product -oriented approach with respect to their presence in different markets, where each segment is channeled in a way as to maintain a holistic perspective on the entire company philosophy with respect to future growth and development as shown in the entrepreneurial hue of the message. The company also expresses concern for the way it is viewed by the public in terms of its outstanding positioning amongst other cruising and non-cruising industry competitors. Thus it gives a strong message that it would try and sustain its posi tions as a cruise market leader while simultaneously bolstering and expanding its spot when it comes to the rest of the tourist industry. The cruising indu The cruising industry has been growing at a compound annual growth rate of 9.1% in North America and 8.4% in Europe for the period 1999-2004(10K, p.4). The number of passengers of Carnival was 6,848,386 which amounted to 48.9% of the total number of cruise passengers worldwide (Keefe et al., 2006, p.2). Carnival's 79 ships operate in all three cruise sectors: contemporary, premium and luxury. The contemporary lines are: the Carnival Cruise Lines, which have 21 ships and passenger capacity of 47,820 people. It operates mainly in North and South America and in 2005 carried an industry record of 3.3 million passengers. P&O is another contemporary brand with a capacity of 8,844 targeting mainly the UK market. Representatives of the premium and destination class lines are Princess (14 ships and 29,152 passenger capacity) and Holland America Line (12 ships and 18,930 passengers), both operating in the North and South American regions, the Caribbean. Carnival's luxury Brands include Seaborn Line with 3 luxury yachts and 624 passengers and Windstar Cruises targeting a demographic of 30-50 year old customers. Other regional lines include: Ocean Village (1 ship) based in UK, which sails the Mediterranean and the Caribbean. Swan Hellenic operates discovery cruises in the UK, the Mediterranean, North America, South America, the Caribbean, the Indian Ocean and the Far East. Costa Cruises is in Italy and has (10 ships). It sails Europe, South America and the Caribbean. AIDA is in the German market sailing the Mediterranean, the Baltic and the Norwegian Fjords, the Canary Islands and the Caribbean. Of all regions of operations of Carnival the most profitable and the most penetrated market is the North American one with revenues of $6,439, $5,788, and $4,513 in respectively 2005, 2004, 2003 (Note 12,10K, 2006). While the UK is the most developed market in Europe for Carnival with revenues of $1,681, $1,549, $971 respectively for 2005, 2004, 2003, which is still 1/5 of the North American