Carnival Corporation: Acquiring Princess Cruise Line(2002)
Case 2 :Carnival Corporation: Acquiring Princess Cruise Line(2002)
Question: Carnival management and board of directors believed that demand would continue to increase well in to the future. Considering that only a small percentage of the North America market had taken a cruise Vacation, reaching more of the North American target market would improve industry profitability. Industry analysis stated that the “assessment of market potential” was only an “educated guess ”.what if the current demand didn’t grow according to industry and cruise line projection?
Answer:
If there is uncertainty about demand increase, top management should recognize how carnival can improve its activities with current environment, so it seems review and reanalyzing the external and internal environment and current business and corporate strategies are important, then in the next step they can suggest some alternative strategies (according to demand depression)and then making decision about their new strategies (which can be current strategy or another kind of strategies) and start for implementation and finally evaluation and control to make necessary adjustment.
Regarding to the above mentioned matters ,for answer this question first I will discuss about carnival external and internal environment to find out current opportunities, threats, weaknesses and strengths of the carnival, second I will try to explain Carnival current strategy, third, I will bring some strategic alternatives, then in the forth part, according to the environmental analysis which I mentioned in the first part, I will recommend a strategy which they should continue in demand depressed situation ,to improve their activities .
First part
Carnival Corporation External Environment(opportunities & threats)
A)Social view
Two-income families have more disposable income to apply toward vacations. (O)
The aging of America means more potential customers for the Holland America Line, which
Question: Carnival management and board of directors believed that demand would continue to increase well in to the future. Considering that only a small percentage of the North America market had taken a cruise Vacation, reaching more of the North American target market would improve industry profitability. Industry analysis stated that the “assessment of market potential” was only an “educated guess ”.what if the current demand didn’t grow according to industry and cruise line projection?
Answer:
If there is uncertainty about demand increase, top management should recognize how carnival can improve its activities with current environment, so it seems review and reanalyzing the external and internal environment and current business and corporate strategies are important, then in the next step they can suggest some alternative strategies (according to demand depression)and then making decision about their new strategies (which can be current strategy or another kind of strategies) and start for implementation and finally evaluation and control to make necessary adjustment.
Regarding to the above mentioned matters ,for answer this question first I will discuss about carnival external and internal environment to find out current opportunities, threats, weaknesses and strengths of the carnival, second I will try to explain Carnival current strategy, third, I will bring some strategic alternatives, then in the forth part, according to the environmental analysis which I mentioned in the first part, I will recommend a strategy which they should continue in demand depressed situation ,to improve their activities .
First part
Carnival Corporation External Environment(opportunities & threats)
A)Social view
Two-income families have more disposable income to apply toward vacations. (O)
The aging of America means more potential customers for the Holland America Line, which