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| Business/Competitve Strategy Cost Leadership |
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| HOME | Carnival operates at 104 percent of its capacity and has the lowest cost in the industry. Their ability to use differentiation strategies in combination with cost leadership strategies has been an integral part of their competitive business strategy�s success. In the words of Carnival Cruise Lines President, Bob Dickinson, CTC, �Carnival Cruise Lines is the world�s largest cruise line because we offer quality cruise vacations at affordable prices � the best value in the entire vacation marketplace�. (carnival.com) Early on, Carnival began to change the normal marketing approach to the cruising vacation. They assembled and offered reasonably priced vacation packages that included both the cost of the cruise and airfare. This cost leadership strategy has successfully attracted the first-time and younger passengers who previously would not have considered a cruise as a viable vacation option. Now, going on a cruise is a feasible vacation option for the average person. Per-diem rates are very comparable to other non-cruise vacation packages. This low-cost competitive business strategy has paid off for Carnival, attracting the previously untapped middle-class market and exemplifying their ongoing commitment on focusing on the broad target of the competitive scope (Keeffe et al, p. 17-3). _____________________________________________________________________________________ Carnival's Strategies Differentiation Major Competition Return to Business/Competitive Strategy Page |
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