Carnival Cruises Global Strategy

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I. Industry Overview The cruise industry is very broad, taking the fact that the company is global and operates on four continents – North and South America, Europe and Australia. Carnival Cruises operates only in North America. Its brands, or acquisitions, operate in the rest of the world. For the year 2008, revenues coming from North America accounted for eight billion and ninety million US dollars, which represent 55.2% of the total revenues of the company. Sales in Europe accounted for five billion four hundred and forty three million US dollars, which represent 37.2% of total global sales. Cumulative sales coming from other regions are totaling one billion one hundred and thirteen million US dollars, or 7.6 % of total sales. Carnival carries around eight million passengers annually, which makes it the biggest cruise company in the world. Each year approximately 10 million people in North America make cruise vacations (around 9.5 million in the U.S. and 700,000 in Canada). The rest of the world is presented by 2.5 million passengers. The total global number totals 12.5 million. If we take this number into consideration, we see that Carnival Cruise and its brands have an approximate global market share of 64% (Datamonitor, 2009) Looking from a global perspective the top competitors of Carnival are Disney Cruise Line, MSC Cruises, Norwegian Cruise Line, Royal Caribbean International, Star Cruises Ltd, Crystal Cruises, Oceania Cruises, Silversea Cruises and Discovery Cruises and Radisson Seven Seas Cruises. II. Company Background Carnival Corporation operates in the cruise industry and is considered as the largest cruiser in the world. Since its formation in 1972, the company has strategically expanded in the US and in the rest of the world. Carnival Cruise Lines was subsidized by the American International Travel Service with founder Ted Turner. (Datamonitor,

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