https://www.sec.gov/Archives/edgar/data/815097/000081509717000001/a2016form10-kf
ID: 413670 • Letter: H
Question
https://www.sec.gov/Archives/edgar/data/815097/000081509717000001/a2016form10-kfrontpart.htm#s4451298E58E557DFACB14F04AE43AA25
The student must do original research on Carnival Corporation (above link goes directly to company with investor page). A minimum of 5 completely different and credible sources are required and “NO SOURCE CAN BE OVER 1 YEAR OLD,” older sources will not count toward assignment satisfaction. Students may use more than 5 sources. Students cannot use a source more than 2 times in a row for a paragraph. The third usage in a row will be considered plagiarism and the entire submission will receive a zero. All assertions that students make in this submission must be accompanied by an in-text citation and reference. If you do not support yourself using appropriate citations within the text of the submission, then the entire submission will receive a zero. References without citations will be counted against the submission. High similarity scores in Turnitin will receive a zero.
Examine the five competitive strategy options (low cost, broad differentiation, focused low cost, focused differentiation, and best cost). Which strategy does Carnival Corporation use? Provide at least 3 decisions that Carnival Corporation uses that explains your strategy choice. In competitive situations sometimes companies need to change their strategy. This may happen to your company in the simulation. Please indicate 3 key decisions that would be needed to move Carnival Corporation to two different strategies. For example, let’s say you determined they currently use a low cost strategy. What specifically should Carnival Corporation implement to move to say a best cost and/or focused differentiation strategy?
Explanation / Answer
There are different businesses that compete with one another with features of price, quality and the important needs of the customers and these focus on the profits of the industry. According to Porter there are five important strategies.
These are low-cost provider, broad differentiation, focused low-cost, focused differentiation and best-cost provider business strategies.
Low-Cost Provider
This aims at providing the products to the board customer base at the lowest price possible. The focus is also on affordability rather than the quality.
Broad Differentiation
A company which uses broad differentiation strategy focuses on making itself stand apart from its rivals. They intend on providing what the customers want and charge extra for it.
Focused Low-Cost
The focused low-cost strategy is targets niche market instead of broad range of customers
It lowers its cost to stand out.
Focused Differentiation
The focused differentiation strategy is an effective niche strategy which stands out in a targetted market which is narrowly defined.
Best-Cost Provider
The best-cost provider strategy is an amalgamation of various other strategies. It aims to provide average features with effective quality and a good price compared to its competitors.
Carnival Corporation is a reputed and popular global cruise company which has broad differentiation strategy. This increased with acquisition joint venture and effective international strategy.
The company makes use of broad differentiation strategy as its overall strategy. It makes use of its vast offerings like holiday vacation and its wide portfolio. The design of the cruising helps for providing broad points for attracting consumers from wide scale of income levels. The company has wide range of pricing which is based on the choice the customers make which is three day cruise from local honeport, contemporary line, penthouse, world cruise, premium luxury line etc.
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