Major Competition
Presently, Royal Caribbean is Carnival�s biggest competitor. Their market location tactics have been that of a frontal assault trying to match Carnival move for move. Royal Caribbean is investing a tremendous amount of money and resources and putting forth great effort to lead the cruise industry in innovation with shipboard amenities never before available on a cruise ship. Royal Caribbean has also attempted to match Carnival�s corporate strategy of growth. Recently, both lines were in a bidding war to purchase competing cruise company P&O Princess Cruises. After several months of negotiations, Carnival Corporation out-bid Royal Caribbean�s $3.7 billion offer by offering a $5.4 billion bid (southflorida.bizjournal.com).
Norwegian Cruise Line is one of the larger cruise lines servicing more than 140 ports around the globe. Following Carnival�s success of attracting the first-time and middle-class passengers, Norwegian Cruise Line has launched Freestyle Cruising. Freestyle Cruising gives the passenger more options to choose from such as casual or formal dinning as well as more onboard activities to choose from. In the attempts to attract more North American passengers, Norwegian Cruise line has launched their Homeland Cruising program. They now offer more cruises from U.S. and Canadian ports than any other cruise line in the world (ncl.com).
P&O Princess Cruises, a line will more than likely become the newest member of the Carnival Family of Companies, became famous in the late 1970s when their ship, the Pacific Princess, became the star of the hit television show �The Love Boat.� Since then, Princess Cruises have distinguished themselves by offering a wide variety of cruising itineraries. Princess currently offers more worldwide destinations than any other major cruise liner. Itineraries range from 7-72 day cruises, visiting 6 continents and nearly 260 ports around the globe (princess.com).
Although Disney Cruise Lines is somewhat new in the rather mature cruise line industry and currently operates with only two ships, its potential to capture the young family market is strong. Disney had a somewhat shaky start, but with the deep pockets of the Walt Disney Corporation backing the cruise line, the potential for growth in great. Disney Cruise Lines has strong leadership with 25-year cruise industry veteran Arthur Rodney at the helm. Rodney successfully negotiated the purchase of Princess Cruises from Boise Cascade in 1970 and later became their VP of finance (marinelog.com).
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Carnival's Strategies
Differentiation
Cost Leadership
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