Carnival Corporation is faced with a variety of difficulties as a business operating in a worldwide marketing environment. Despite the potential for growth in places like Europe and the US, the company has trouble expanding. Additionally, the company is dealing with certain legal problems that have harmed its brand. As a solution to the issue, this paper suggests engaging in active marketing while growing your fleet. The business should also spend money on market research and adhere to numerous environmental laws.
With nearly 50% of the global cruise business, Carnival emerges as the industry leader. The company has been growing through mainly through acquiring smaller firms in the industry. In addition, differentiation ensured that the company was able to serve different market segments. The recession of 2008 did not affect the operations of the company significantly, and now it is the road to recovery.
Problem Information
Despite Carnival’s commanding position in the market, it has problems that it has to address. First, the company is faced with expansion problem. From the case, capturing additional market share is difficult. However, the case also notes that only 20%, 9%-10%, and 4-5% of the US, UK, and European populations respectively had taken cruise. As such, there is a market that Carnival can tap into. The company has also been faced with legal issues that have negatively affected its image in the eyes of the customer. There is thus a need to address this issue.
Relevant Concepts Explanation
According to Wheelen, Hunger, and Hoffman, organizations engage in strategic management in order to pursue their long-term performance (43). While many firms can effectively management the short-term issues affecting performance, the long-term ones are only handled well by few companies. With new challenges coming from innovation, sustainability, and globalization, the scope of operations of firms have increased, particularly for firms operating in the international market (Wheelen, Hunger and Hoffman, 44).
Carnival is a company operating in the global market and is thus faced with the challenges of globalization and sustainability. With many subsidiaries in the US, Europe, and Asia, the company has to take into consideration the global forces that affect its operations. It thus has to constantly scan the environment and examine problems and opportunities that may affect its operations. As informed in the case, there is a growth potential for the company in Europe as well as the US. Further expansion in these areas requires the company to be aware of the environmental issues that can affect operations. With the company already having operations in these areas, it is already aware of the political, legal, and economic factors that are prevalent. One factor that is constantly changing is the social factors including preferences and tastes of customers. With the company having faced legal and environmental issues in the past, it is vital that it implement measures to reduce them and also invest more in sustainability to boost its image in the eyes the consumer.
Recommendations
Expansion of fleet and engagement in vigorous marketing will help the company capture additional market. As noted, there is a potential for growth in the US as well as Europe segments. With its current cruises having occupancy of more than 100%, additional fleet will help the firm increase its share in the market.
Investment in market research is also essential. There is a large market that is untapped. Understanding the specific needs of these markets requires market research.
Alternative Recommendations
There is a need for the company to comply with various environmental laws to avoid legal issues. In addition, training its staff in regards to treatment of customers will help in reducing lawsuits by customers.
Conclusion
As the world’s largest cruise firm, Carnival is faced with various challenges from both the external and internal environment that it has to address. Most of the challenges are brought about by the global nature of the firm’s operations. This paper has determined that fleet expansion and vigorous marketing, market research investment, as well as compliance with laws can help the firm address the challenges.
Work Cited
Wheelen, Thomas L., et al. Strategic Management and Business Policy: Globalization, Innovation, and Sustainability. Upper Saddle River: Pearson Education, Inc., 2015.
