Carnival Cruise Lines Case Study Example | Topics and Well Written Essays - 750 words - 1

Carnival Cruise Lines - Case Study Example Few large firms or companies then are left to control the entire market share in the industry and this then will leads to a consolidated industry. Firms or companies like Carnival Cruise Lines in the cruise industry are very well established with very large economies of scale (Enz, 2010). In such cases, the industry is likely to be more competitive compared to the fragmented industries. This is all because well established firms in a consolidated industry have the ability to implement several strategies and come up with new products after thorough research. With adequate resources, firms in a consolidated industry will always be on the run to compete with one another to win more clients and improve their general sales. Such firms will advertise their products aggressively to improve brand loyalty and create awareness of their products and services among many customers in the market. Taking an example of the Carnival Cruise Lines, it is clear that what is happening between the company and the Royal Caribbean International is a stiff competition to win more customers and establish strong brand of their products. 2. A consolidated industry is usually made up of few but very big firms or companies who entirely dominate the industry and control a large market share of a certain product type. This is all because when some new firms try to enter the industry, they meet some setbacks and a lot of competition with the few big firms which have a lot of resources to win a big share of the market. The firms in a consolidated industry deal in differentiated products and get very high profit margins. In that case, one can say that a consolidated industry is more resembles an oligopoly structure because in an oligopoly market structure, there are few firms who control a large market share with differentiated products (Enz, 2010). Like in oligopoly market