1. Case Analysis
As a result, a price war may ensue within the industry and Carnival's profitability will decrease. ... ThreatsEmerging competitors (Disney), Existing competitors (Royal Caribbean) price wars. ... Carnival wishes to sustain profitability levels, yet a price war will cause revenues to decrease, as customers are lost to competition or prices fall. ... Carnival will also be more likely to avoid a price war with the competition. 3) Reduce operating costs, which would also allow for decreased prices. Although this would keep the company competitive, an acquisition by another company i...
- Word Count: 1545
- Approx Pages: 6
- Grade Level: Undergraduate