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PESTEL Analysis
January 31, 2013

From the political perspective, Carnival Corporation would be affected by government policy particularly on the issue of taxation. Higher taxation is likely to have an impact on the company in the US and Europe. The government policy on the environment is also likely to affect the company with more costs of operating business in the US and Europe. Terrorism and piracy are all political and can affect the future operations in the markets.

Economic factors such as the recession would impact on the company in a negative way. Higher taxation in the US and Europe is likely to increase the costs of doing business. They would also reduce the revenue that would be generated by the business. The rise in oil prices is likely to increase the costs of providing the services
Social factors such as the culture of the people in the target market would have an impact on the consumption of the services. The company should be careful about social trends such as holidays and local tourism in the target market. Changes in the trends can affect the consumption of cruise ship services.
Technological changes should also be looked into in the course of doing business in the US, Europe and other target destinations. The company has the potential of coming up with new technological ideas that can increase the demand for the services.
The environment in which the company operates is likely to have an impact in terms of costs. This would arise because of the impact the company is expected to have on the environment in terms of pollution. Stiff environmental policies are more likely to increase the cost of operations.
From the legal perspective, the industry seems to be having a lot of regulations. Compliance with national and international maritime laws has to be ensured for smooth business operations. There are also laws that concern safety, healthcare and the environment.

Competitor Analysis
Carnival Corporation has three main competitors who offer similar cruise services to the customers in the market.
1. Royal Caribbean Cruises Ltd.
2. Genting Hong Kong Limited
3. All Leisure Group PLC

Each of the competitors has some share in the cruise market but Carnival occupies the bigger market share. The well-trained employees are a major asset that differentiates Carnival from the three competitors.
Short-term and Long-term analysis
In the short term, Carnival Corporation has a goal of restoring confidence in the customers on its commitment to safety. The aftermath of the Costa Concordia accident has called for a strategy to restore confidence in the customers. For instance, the corporation has to focus on offering generous and confidential settlements to the affected passengers. This can help a lot in dealing with the lawsuits and litigations that have threatened to damage the image of the company.
In the long-term the corporation has a goal of bringing travel agent relationships into the 21st century. The travel agents are the principal marketing tools for the company. Improving the travel relationships will ensure that Carnival would exercise some control over the customer lists. For instance, it would be possible for the company to recognize repeat customers and hence make efforts to retain them. Partnerships with travel agencies would also be another solution to the travel agent relationships. This would facilitate gathering of data from the agencies on a time-to- time basis hence improving services to the customers.