Which entry is Carnival in? Chapter 4 Analysis of Environmental Opportunities

Overall, Carnival Cruise Line is in the travel industry. Their main goal is for travelers to have fun, explore, and choose fun everyday they are on the cruise. However, with the travel industry, there are so many different aspects. You have cruising, flying, driving, hotels, resorts, camping, and so much more. The travel industry has so many different aspects that it is hard to singularly define the kind of industry they have across the board.

When looking at the overall industry, travel is a fragmented industry. Therefore, consolidation has worked in the major segments. Cruise companies such as Carnival have purchased many other companies to sit under their umbrella brand of Carnival Corporation. This has allowed them to influence the market as the largest cruising company in the United States. Other segments, such as airlines, have done the same thing. Delta and American have consolidated with many other airlines to be the two premier airlines in the United States. Due to these moves, it has allowed all of these companies the opportunity to succeed in the markets they want to.

When looking at specific segments, such as cruising, I would say that the cruise industry is continuously emerging. While cruising has been around for awhile, it has not been accessible to all. It has been seen as an activity for the rich. However, cruising is increasing in demand and accessibility for all those who want to go. Carnival currently has ports within 5 hours driving for 80% of the nation. Cruises are becoming more accessible and cheaper for families to board. When looking at opportunities in emerging industries, I caught notice of strategically valuable assets. Within the cruise industry, one of the most valuable assets is the port. Often times, ports are owned by one or a set of companies. When a cruise lands at a port in Cozumel, Mexico, it is one owned by cruise companies. All of the shops, restaurants, and other areas directly where the ship lands are owned by cruise companies. Therefore, it is very hard for companies to enter the new market. Norwegian, Carnival, and Royal have a stronghold on these ports and work together to allow entry. Without working with them or having enough money/political sway to work with the local government, there is no way the new companies can enter.

Carnival's Cozumel Port
The last thing I would say is Carnival could be in a cruising industry that is empty core. However, cruising has always been deregulated as they do most of their cruising in international waters. Therefore, the industry has always been adjusted to no regulationss.

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