Carnival Corp Case Study

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Carnival Corp. (trading on the New York Stock Exchange (NYSE) as CCL) operates within the resorts and casinos industry. Carnival Corp. and the latter three cruise companies carried over 80% of all cruise passengers in 2015. Carnival Corp. has a market share of 42.2% (15.72 billion revenue), Royal Caribbean and its affiliates have a combined market share of 22.1%, while NCL and MSC have market shares of 12.4% and 4.2% respectively.
(http://finance.yahoo.com/q/pr?s=CCL+Profile )
(a) Economies of Scale
Cruises have relatively high fixed costs. A “plant” for Carnival is a ship it operates. Once a ship is scheduled to set sail all the crew are onboard and all the fuel is paid for. Every ship requires a captain, chief engineer, hotel officer, staff
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