Strategic Management of Carnival Corporation - Coursework Example

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 positions as a cruise market leader while simultaneously bolstering and expanding its spot when it comes to the rest of the tourist industry.

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 a 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.