Carnival Corporation SWOT Analysis

Carnival Corporation is a public industry that has dual roots in America as well as in England. The Corporation was founded in 1972, and is headquartered in both ends that is America and England, in America the headquarters are at Miami, Florida and in England the headquarters are at Southampton. Carnival Corporation and Plc though are separate but the all the groups operating are governed under one head, so both are considered jointly. Carnival Plc is actually the major acquisition of Carnival Corporation in England since 2002, before that it was known by the name of P&O Princess Cruises PLC.


• Carnival Corporation is largest in the world for dealing with cruise ships and 11 identifiable brands are being operated by them.

• The cruise ships that company is operating by 2011 are huge number that is 100.

• The cruises are serving majority of the company that might be luxurious, budget friendly or contemporary, according the market being served.

• The operating cost of the company US$ 2.347 billion, that is comparatively at advantage over the competitors costs.

• The revenue owned by the company was US$ 14.469 billion and the profits being generated are three fold greater than that of expected values from such markets.

• The company’s promotional strategies advantage it through increasing the customers’ base through the print and electronic media.

• The demographic presence of the company is strong enough in North America, Australia, Germany, Spain, Brazil, UK, and New Zealand with majority pf shares in United Kingdom, Italy, Germany and France.


• The company is often unable to maintain the increasing trends in profits and revenues as in 2009 as compared to 2008 decreased by 23.2%.

• The customers’ base of the company is highly dependent upon America that is more than 50% and the decline in the profits is always largely associated with American market.

• The dollar rising value against the German and UK’s currency decreases the company profitability as their currency value is less as compared to dollars.

• The construction of ships by the company outdraws huge amounts of capital that adds to the instability of the company at the time of instability in the economic conditions of the company.


• The company though biggest cruise company still accounts of only 5% of the global traveling industry. The company has enormous opportunities of expansion in Asia and Europe.

• The berth capacity has been planned to increase by 37% in 2012. This would generate heavy profits from European travel industry.

• The Chinese customer base of the company is increasing every day because of the economic stability of the china’s economy, for this purpose specifically costa Classica was launched.

• The union of Costa Europe and Thomson Cruises in 2010 has provided the tremendous opportunities for both the ends.


• The tax escape of the corporation is in a great threat as US government is on the way to wind up the loopholes provided to the company affecting the financial statement and profits tremendously.

• The low sulphur fuel usage is expensive but it’s been obligated on the company by environmental protection agency of USA.

• Onboard felling off of the passengers and pirates Attack in Somali has posed a great threat to the company.


• “Carnival cruises towards P&O deal”. (October 25, 2002). BBC News.

• Greenburg, P. (July 2009). Three Passengers Fall Off Carnival Cruise Ships In Three Weeks. Petergreenburg.

• Sloan, G. (2008). Cruise ship passengers describe ‘pop, pop, pop’ of gunfire as pirates attacked. USA Today.

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