Cruise Industry Essay Example | Topics and Well Written Essays - 3750 words

Cruise Industry - Essay Example This therefore, divides the market into different influential spheres. The fragmented industry allows all its players to create niches and the market shares where each one of them can work in, unlike in the consolidated industry where there little or no niches for the small players (Enz' 514). Q.2 In the cruise industry the cruising market is a single and segmented entity where products are differentiated mostly by the preferences of consumers and the assumption is that there is an increase in the overall sustainability and completion. Therefore, the cruise industry can be characterized as an oligopoly. The market structure of the Cruise industry is noticeable by the fact that there are few large firms such as the Carnival Corporation, which dominate this market, which all offer identical services that have a significant barrier when making entries in this industry. The cruising industry is widespread in the world and diverse in all ways. It dominates most of the modern landscape tod ay and the economics. Each of the firms in the cruising industry keep a close eye on what other firms in the industry are doing. Thus, a firm’s success in the cruising world is not entirely dependent as a sole entity. The cruising industry can also be classified under the oligopoly as the prices are mostly rigid and competition is not involved through the change in prices. Q.3 Carnival Corp brands are the most recognizable in United Kingdom, North America, among other states. The brands offer numerous customer base products which are highly based on customer cultures, languages and other preferences. Numerous brands that are operated by Carnival Corp usually have synergies (Enz' 516). A synergy is a merger of two or more firms and produces an effect. For example, if one of Carnival Corp’s brands has excellent services and products but has poor distribution channels, and the other brand has an excellent channel of distribution but offers poor services and products, the two could form a synergy and benefit from each other. The firm’s brands range from the carnival cruise lines, Cunard line, Princess Cruises and the Holland American Line. A combination of these brands forms a synergy that is usually more than the sum of the sum value of these brands. Forward-looking statements of Carnival’s annual costs savings can be identified through the estimates made on synergies and the cost of time that is taken to implement the synergies in the brands. Q. 4. Brand strategy: The existing customer information can influence the brand strategies at Carnival Corps in the future by increasing the firm’s profitability and stock price. Customer information promotes the use of effective brand strategies for up-coming organizations. More information influencing the brand strategies is a guarantee of the future ability of Carnival Corp to compete strongly in this competitive market. Additionally, there is a guarantee that the firm will not introduc e any defective products to its customers, thereby reducing the risk of making of future losses. Information from the customers predicts on the firm’s future performance and increases the chances of the firm identifying its faults. Information from regular customers who have cruised in the same routes may remind Carnival Corps that they have to provide new port destinations and products (Enz' 516). Q. 5.Carnival’s existing customer perceptions of its brands: Carnival