Cathay Pacific Essay

play along Profile chinaw be peaceable is an international skyway line of products registered and based in Hong Kong, offering scheduled rider and cargo table swear issues to 172 destinations in 39 countries and territories. The Company was founded in Hong Kong in 1946 and corpse deeply committed to its menage base, making secure investments to develop Hong Kong as one of the worlds principal international aviation centres. In totition to its fleet of 138 aircraft, these investments hold catering and ground-handling companies and the embodied headquarters at Hong Kong International Airport. chinaware peaceable continues to invest heavily in its home city and at thirty-first December 2012 had another 92 vane- new-fashioned aircraft due for deli precise up to 2020.The air hose recently completed construction of its aver cargo final in Hong Kong, which commenced a staged transition of operations in February 2013 mainland chinaware peaceable and its subsidiaries e mploy some29,900 people intercontinental (to a gr finisher extent than 22,800 of them in Hong Kong). mainland china peaceable is listed on The Stock Exchange of Hong Kong Limited, as are its substantial shareholders Swire peaceful Limited (Swire Pacific) and Air China. chinaware Pacific is a first appearance process of the oneworld global alliance, whose unite network serves to a greater extent than 800 destinations worldwide. emulous proceedssCompetitive advantage is the ability of an organization to outperform others beca purpose they produce desired goods or works to a greater extent efficiently and effectively than its rivalrys. When a regular sustains dinero that exceed the average for its diligence, the firm is said to possess a private-enterprise(a) advantage over its rivals. The goal of much of line of products strategy is to come across a sustainable warlike advantage. A competitive advantage exists when the firm is able to deliver the same benefits as compe titors but at a depressioner cost (cost advantage), or deliver benefits that exceed those of competing ingatherings (differentiation advantage). Thus, a competitive advantage enables the firm to create superior value for its guests and superior net profit for itself. Characteristics of competitive advantagesValueTo improve the product quality, mainland China Pacific efforts to chance on and achieve needs of passengers. In an increasingly competitive environment, it is crucial to hold up and develop passenger dedication by providing postgraduate quality products and gains. This remains a key focus of the mainland China Pacific Airways. Therefore, mainland China Pacific has introduced a new Premium Economy Class product, a new long-haul Economy Class seat and a new Regional affair Class seat. The airlines long-haul Business Class was named Worlds Best Business Class in 2012 at the World air hose Awards run by Skytrax. chinaware Pacifics strengths is to provide a comprehensi ve take of service, we are committed to the objectives to be achieved. expressed the phoners strengths said by mainland China Pacific Deputy chairwoman and Chief Executive David Turnbull.Not only service provided by mainland China Pacific inside the aircraft, but besides all ground service need to be monitored, such(prenominal) as check-in, pick up baggage and even the passengers leave from the airport to the home way. All these aspects are chinaware Pacific service range and striveto provide satisfactory service to passengers. The Top- order prudence team and loyal support corporation workforce a good combination. Thereby, the airlines real competitive advantage in these close to(prenominal) challenging business conditions for our intentness in more than a generation was its supportive workforce, quoting the response of the airlines nearly 20,000 round to a special leave scheme designed to save the troupe cash and to prevent the need for staff layoffs.On the other hand, t he center field strengths of mainland China Pacific Airways are a superb team, a wholesome international network, exceptional standards of customer service, a strong relationship with China and our position in Hong Kong. These will help to ensure the success of the chinaware Pacific Group in the long term.RarenessFrom the Hong Kong peoples point of view, Cathay Pacific Airways is a Hong Kong-based international airline registered in Hong Kong, offering scheduled passenger and cargo manoeuver to over 90 destinations around the world. So many transit passengers can take advantage of this huge turn dodging of steps transmission of Hong Kong and Cathay Pacifics flight network. Thus, they can proceed to another city through and through Hong Kong. As the Hong Kong airport is a hub airport, Hong Kong is a transit point for the proportion of long-term passenger. Therefore, Cathay Pacific abandoned the petty(a)-price strategy, but stick to the original high-end line, inflexible to b ecome the most admired airlines, Shaping a super place naturally become a center of all of Cathay Pacifics work. Concerning the super brand image, it is shaped by 3 elements which are quality products, full service and successful advance.LimitabilityFurthermore, the Cathay Pacific brand communication activities are very systematic and high-profile promotional activities abound in the world. For example, join to carry out the activities of the Best Chinese Food with so well-known restaurants in Hong Kong, joint other business enterprises for holding Asia Miles air ducts prevalent flyer program, Cathay Pacific Hong Kong International Races with the Hong Kong Jockey Club, and so on. Promotional activities with a clear theme promoted in different spot andchannel, such as TV advertising, print advertising, Internet advertising, outdoor advertising, and so forthSubstitutabilitySince the network and the routes that the airways own products, Cathay Pacific constantly leverage new model s, update, expand their fleet, and to join one of the worlds quintet largest airline alliance oneworld alliance to strengthen the global network. Currently, more than 80 piloted aircraft Cathay Pacific fleet is one of the worlds youngest and most modern passenger fleet, with an average age of only seven years. Moreover, Cathay Pacific received 19 new aircraft in 2012 for prolonging to upgrade the competence of the familiarity. As at 31 December 2012, Cathay Pacific had 92 aircraft on order for delivery up to 2020. The order was placed for 6 Airbus A350-900 aircraft in January 2012.In August, Cathay Pacific ordered 10 Airbus A350-1000 aircraft and reborn an existing order for 16 Airbus A350-900 aircraft into an order for 16 Airbus A350-1000 aircraft. In edge 2013, Cathay Pacific entered into an agreement with The Boeing Company under which it agreed to get 3 Boeing 747-8F freighter aircraft. Under the agreements, Cathay Pacific likewise acquired options to purchase 5 Boeing 7 77-200F freighters and The Boeing Company agreed to purchase 4 Boeing 747-400BCF converted freighters, which were taken out of service in 2012 and early 2013.SWOT analysisStrengthsCathay Pacific is committed to strengthening Hong Kongs position as a global aviation hub and gateway to the Chinese primary(prenominal)land, and leveraging its network to prove business, tourist and cargo traffic flows. Cathay Pacific is dedicated to proficient excellence for its products and services. It was one of the first airlines to provide inflight email. It also offers online ticketing and check-in, a downloadable timetable, and the notiFLY flight paging service, which delivers real-time flight information updates to customers via email or on their mobile phones. The iPermit scheme enables Taiwan residents to apply for Hong Kong visas via the internet and collect them upon stretch at Hong Kong International Airport.Its inflight entertainment system offers more than 20 image channels and an au dio/videoon demand system for jump and Business differentiate passengers. It was voted Worlds Leading Use of Inflight applied science in the World Travel Awards 2003 poll of 80,000 travel industry professionals. Cathay Pacific is a element of the oneworld global alliance, joining Aer Lingus, American air lanes, British Airways, Finnair, Iberia, LanChile and Qantas. Swiss Air Lines International is the latest full alliance member. The oneworld carriers combined network serves more than 570 destinations. Cathay Pacific is also a member of the popular travel reward program, Asia Miles.WeaknessThere is no such company without weaknesses. Cathay Pacific Airways unpunctuality in their flights sometimes makes their customer ticklish to opt to fly with the airline. In addition, the air hostesses are not very pleasant and nice thus making people leave out the airline as an option when traveling home and abroad. Cathay Pacific Airways also finds it hard to reposition itself in the wake of financial crisis. The company also is unable to deal with numerous scandals compelled people to lose trustingness in it.OpportunitiesCathay Pacific Airways is known to be Hong Kongs leading airlines gives them the opportunity to acquire more customers and generate more revenues. pot would hand more confidence on airlines that are recognized by the accord winning bodies because it would make the people have more confidence on flying with the said airlines. In addition, with Cathay Pacific Airways online booking, they give more widget to their customer giving them the chance to attract more customers specially with people that have no time to go to airlines branches for bookings. The airline has also an opportunity of technology advancement for easier transaction and operations and for more convenience for customers and employees. Moreover, with its recognition, the airline attracts more opportunities of expansion.ThreatsThreats are always with every organization. air hose industry is the most competitive industry. Cathay Pacific Airways competitors especially the government own airlines are the threat of the company. Government owned airlines have less probable to close down. It is also supported with the national government with their resources giving them more opportunities overa publicly owned airline like the Cathay Pacific Airways. In addition, political ramification also affects the operation of airlines. Moreover, sparing recession also is a threat to airlines. With economic recession, people are likely to save and reduce their travel expenses to cope up with the recession. People expenditure are the most likely affected with the recession and thus also affects airlines since people don not mostly travel in times of economic recession.In addition, threats in terrorist attack, the rising fuel and apprehend costs also have caused the company to do it low level of profits for people are hesitant to travel due to these threats. incorporated st rategyCathay Pacific is using the growth strategy in the food securities industry. Organization wants to expand the number of markets served or products. They develop the business through their current business and new business In their growth strategies, there are concentration, Vertical integration, flat integration, related variegation and stability strategy. Main product of Cathay Pacific is providing the transportation. In the addition, they provide the entertainment, food and drunkenness to the passenger in the flight. Nowadays, they will change the menu of the flight and add the new entertainment to meet the passenger needs. For example, they announce the latest promotion to enhance award-winning in-flight wine selection. The introduction of six world class wines is from saint-Emilion Bordeaux, France to the first class wine list. It can attract the passenger to use their product on second of May. In each year, the company should be increase or improve the facility to ge t the passenger satisfaction.In the integration, there is vertical and horizontal. Cathay Pacific is the powerful organization. In their flight product, they need to provide the food to the passenger. Some of the airline, they should be find the fork over to provide the food but Cathay Pacific have the Cathay Pacific Catering Services (Hong Kong) limited company to provide the food. It can control the food quality and the supporting will be fixed. On the horizontal integration, they take over the Dragonair on 28 September 2006 Dragonair was the competitor of the Cathay Pacific before the coup. Within the CathayPacific takeover the Dragonair, The two aircraft were restructured, and re-sentencing waypoints. Dragonair should re-position as a regional airline, mainly to China and Southeast Asia markets. Moreover, Dragonair have another main function of the company. It is providing the intercontinental routes to Cathay Pacific to interchange network. For the diversification, there is the related and unrelated. Cathay Pacific created the Asia Miles membership.The member can through nine type of industry to get the Miles overwhelm the airline, hotel, finance and insurance, meals and banquets, retail, travel and leisure, automotive and transportation, telecommunications and professional services to get Miles. If the members subvert the product in the partner company, it can get the Miles. The Miles can exchange the travel, electronic products, meals, concert tickets etc. The partner agencies were the China Airline, Australia Airline, Japan Airline etc. The Asia Miles can attract the guest to choice the service of the company. It is the devotion program to attract the guest to be the loyalty customer.The unrelated diversification of them is promotion of the company. they should join the Hong Kong Tourism Board will be held in the Chinese untested social class Parade on every Chinese new year day one. Also, Cathay Pacific sponsored the TV programmed some the tr avel and airline industry such as the Choi Lam eat on the world TV travel programmed made from TVB. Also in stability strategy, Cathay Pacific reduced the frequency of flights on the Los Angeles, unfermented York and Toronto routes. Base on stable demand on passenger, Cathay Pacific still maintain terzetto flights a week on the Los Angeles, New York and Toronto routes at the same time, to make a total of 20 flights per week. apprehension behind the corporate strategyCathay Pacific is based on customer retention for the company, service is absolutely critical. The company has been voted Airline of the Year in the Skytrax passenger poll twice in the past three years. But the company knows that it cannot survive as a premium airline without continually reinventing itself to maintain its status in such a passing competitive industry as the airline industry. Performance of its personnel is the most critical in the organization.Cathay Pacific is mainly focusing on their primary line of business andincreasing the number of products offered or markets share. For instant, buy new model aircrafts and adding different routes to different parts of the world. Also it uses the new technology to get help in the operation.Also, Cathay Pacific has their own catering services for preparing the foods consume in the aircraft. Thus Cathay pacific becomes its own supplier so it can control its inputs.Beside, for keeping the market shares in the airline industry. Cathay Pacific has taken over the Dragonair. Cathay Pacific is combine with Dragonair that to increase the competitive strengths and lower competition among industry rivals. To increase the profit and encourage the potential customers, Cathay Pacific regulate up the Asia Miles membership to aim at attracting the guest to be the loyalty customer.In order to gain the attraction from the citizen, Cathay Pacific had joined the Chinese New Year Parade in every Chinese New Year to keep their exposure to the public. Furtherm ore, Cathay Pacific act to serve the same passenger by offering the same product or service that to maintain market share and sustaining the current business operation such as providing the long-haul services with an acceptable price. It will not fall behind in the airline industry.Recommendations and rationale on its corporate strategyIn the case of Cathay Pacific Airways, market phylogeny and product evolution is the best suit their way of doing business. Market development is capable to their business since they have already penetrated the existing markets. It is important to market their product on new markets. Product development is also suitable to maximize their profits. Product development would also enable them to offer more products and services in which are needed by the existing customer and may also invite potential customers thus increasing their profits.In an increasingly competitive environment it is crucial to maintain and develop passenger loyalty by providing high quality products and services, we suggested increasing some regional services in response to more robustdemand in parts of Asia. Cathay Pacific should added frequencies on routes to India, Japan, Malaysia, Singapore, Taiwan, Thailand and Vietnam and introduced a new service to Hyderabad in India. For providing a more comfortable and an unforgettable flying experience to the customer, a new premium economic system class, a new long-haul economy class seat and a new regional business class seat will be added.To maintain the competitive advantages, Cathay Pacific should implement a more convenience global internet service and e Business platforms. The implementation will ensure staff worldwide can take advantage of improved performance and secure, cost-effective entranceway to critical business applications such as reservations, sales information, revenue management and engineering systems. The global Internet solution will enable hereafter applications and passenger services t o be speedily and simply developed and deployed worldwide, plot of land also reducing telecommunications costs. This new lease of life means that the airline can better adapt to the demands of its markets and be responsive to changing business requirements.Cathay Pacific put safety in the first precedence safety is the first and most important clause of Cathay Pacific mission statement and has been a core commitment since the founding of airline more than 65 years ago. In food safety, Cathay Pacific continues to do their utmost to serve meals that meet the highest levels of food safety and hygiene. It works with caterers to create well-balanced meals, minimizing the use of trans-fats, and follow the policy on no monosodium glutamate. The policies on food safety and hygiene are based on recognized standards, such as the World Food Safety Guidelines for Airline Catering. Our caterers must comply with our strict food safety requirements and they are measurable and monitored through our robust audit programme.In order to have horizontal integration, we advise Cathay Pacific can take over the Hong Kong Airline and Hong Kong Express Airways. The target market is mainly focus on the low air ticket price market and offer package tour. Cathay Pacific can expand the market share on low end.For diversify the Asia Miles membership, we recommend to co-operate with different credit card issuing banks. by means of the credit cards, passenger can easily accumulate their pints to convert to mileage. In return helps to attract more passengers to purchase our services.To arouse people attraction, Cathay Pacific not only has the TV advertisement but also to put the resources on other medial to promote the company.As the high cost of fuel, it made difficult to operate in some long-haul services profitably. We suggest Cathay Pacific to use fuel-efficient Boeing 777-300ER aircraft to instead of the less fuel-efficient Boeing 747-400 aircraft operate to on the long-haul services .ReferenceWebsitehttp//www.cathaypacific.com/certified public accountant/en_INTL/homepagehttp//www.cathaypacific.com/cpa/en_INTL/aboutus/mediacentre/cxworld?CX_LANGUAGE=en&CX_COUNTRY=INTL http//www.cathaypacific.com/cpa/en_INTL/aboutus/investor/annualreports http//en.wikipedia.org/wiki/Cathay_Pacifichttp//www.ukessays.com/essays/merchandising/analysis-of-hong-kong-airline-cathay-pacific-airways-marketing-essay.php http//ivythesis.typepad.com/term_paper_topics/2010/02/swot-analysis-of-cathay-pacific.html http//www.allfreepapers.com/Business/Competitive-Advantage-Airlines/29593.html http//wiki.mbalib.com/zh-tw/%E9%A6%99%E6%B8%AF%E5%9B%BD%E6%B3%B0%E8%88%AA%E7%A9%BA%E5%85%AC%E5%8F%B8 http//en.wikipedia.org/wiki/Hong_Kong_Airlineshttp//en.wikipedia.org/wiki/Hong_Kong_Express_Airwayshttp//www.cathaypacific.com/cpa/en_INTL/aboutushttp//www.cathaypacific.com/cpa/en_HK/aboutus/mediacentre/cxworld?CX_LANGUAGE=en&CX_COUNTRY=HK http//www.cathaypacific.com/cpa/en_INTL/homepage?CX_FCN=CXHOME0_Hom e