Essay on Carnival Cruises

1122 Words Aug 7th, 2011 5 Pages
In general, the level of competition in an industry increases with the number of firms in the industry. If all firms in an industry are small in size, relative to the size of the industry, it is a fragmented industry. If a small number of firms controls a large share of the industry’s output or sales, it is a consolidated industry.

The type of competition in fragmented industries is generally very different from that in consolidated industries.

A consolidated (concentrated) industry, like the cruise industry, typically has a more attractive industry structure, though the nature and extent of competition in consolidated industries is hard to predict. Such industries typically exhibit high entry barriers, differentiated products,
…show more content…
Major companies in oligopolies have typically grown up with each other over time and often know how they would respond to a competitive action by them.
The level of competition in the cruise industry has improved with the development of new products and services.
In some oligopolies, incumbents often engage in a high level of competitive, unilateral actions forcing other industry members to respond in kind. One example that comes to mind is the marketing war between Carnival and RCI.

3- There isn’t any kind of synergy between the brands operated by Carnival Corps (such as Princess Cruises, owned by Carnival Corps). Even though Princess Cruises is owned by Carnival Corps, that fact won’t stop Carnival Corps to step up the competition with new products and services. One of these examples was the Princess Cruises’ “Movie Under the Stars” program, and one year later, Carnival answered with a “Carnival’s Seaside Theatre”
The cost-leadership strategy adopted by Carnival Corps has allowed the company to deliver a good-value vacation that involved prince-sensitive cruisers and still created income in excess of 25 per cent.

4-The core guests of the Carnival Corps are the young, middle class clientele who were attracted to the Fun Ships Theme, which was the brands’ cornerstone. The theme consisted on promoting the experience as something unique in the cruise industry, where a wide range of exciting activities would be offered to the guest (e.g.: casinos, live

Related Documents