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SWOT Analysis of Carnival Corporation: Acquiring Princess Cruise Line (2002) - Case Study Example

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Carnival Corporation has several strengths and which have enabled it remain in the market despite the competition and the challenges it has faced since it began in 1972. It has had several “firsts” in terms of cruise locations and services being offered which has gained it a…
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SWOT Analysis of Carnival Corporation: Acquiring Princess Cruise Line (2002)

Download file to see previous pages... These packages range from air-conditioned transportation to and from the airport to a variety of dinner and entertainment on board as well as 24 hour room service and housekeeping not to mention the scheduling of daily activities to avoid boredom and monotony during the cruise.
Every great success has a weakness story behind it or a dirty linen that needs to be washed somewhere. The same is the case for Carnival Corporation. In 2001, six of its cruise line ships failed to comply with the federal ocean pollution rules set as pertains the discharge of its bilge water. This led to a federal lawsuit that saw the corporation pay $18 million in fines and court restitution fees in settlement. What this meant was a shortage of $18 million and negative publicity as the whole lawsuit was a public affair. This meant a setback in customers and especially those who are environmentalists.
The other negative publicity emanated from the numerous cases of onboard virus attacking several of their cruise line ships during the cruise. These viruses reported in Holland America, Carnival cruise line led to evacuations, cancelation of the sailings and reimbursements which meant additional unforeseen costs as well. The other greatest weakness is the long-term debt of $3 Billion as of 2001 which weighs heavily on the cruise corporation and could render it bankrupt in future if strategies are not taken soon.
Being the “first” and having the largest market share in the industry, Carnival Corporation has many opportunities. According to a research carried out by Boston Consulting Group Study majority of the North American population (85-88%) had yet to take a cruise vacation and this therefore means a great opportunity that need to be tapped into and quickly for that matter.
Cruise ships for a while have been targeting the rich and hence the middle class do not get ...Download file to see next pagesRead More
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