Cathay Pacific Airway

Sheffield Hallam University

BSc (Hons) Hospitality Business Management

Strategic Management

Cathay Pacific Airway

Student Name: Au Ka Yu

Student No.: 137017725

Module Tutor: Jennifer Leung

Submission Date: 13 December 2013

Word count: 3,002

Content

Introduction        

Company Background        

Product Portfolio        4

Targeted Market        5

Resources        5

Competences        6

Competitive advantage        6

Micro & Marco External Environmental Analysis        6

Analysis of Cathay Pacific Airway by Porter’s Five Forces Model        7

Analysis of Cathay Pacific Airway by PESTLE framework        8

Key trend & possible new markets        9

Business level and Cooperate level Strategy        10

International and Network level strategy        11

SWOT Analysis and current situation        12

Conclusion & Recommendations        14

Reference        14

Appendix        18

Introduction

The report is a brief analysis of current strategy and evaluation of strategy of Cathay Pacific Airway. The first section will introduce the background of Cathay Pacific Airway like company’s history, development and mission and vision. The second section will have a brief portfolio of product delivered by Cathay Pacific Airway, its target market, its resources and competences and its competitive advantage. The following will discuss the micro and macro external environment that affect the strategy of Cathay Pacific Airway. By the environment analysis, the first section will discuss the key trend and possible new market. The second section will identify the business level and corporate level strategy. The third section will determine the international strategy and network strategy. The following is a summarized analysis of SWOT analysis and current situation. Finally, the report will come up with a conclusion and recommendation for future direction.

Company Background

Cathay Pacific Airway is an international airline company in Hong Kong which established in 1946. The corporate headquarter located at Hong Kong International Airport. It offers passenger and cargo services to 172 destinations over 39 countries. Cathay Pacific Airway was awarded as having the “World’s Best Cabin Staff” in the 2013 Skytrax survey among 18 million airline passenger worldwide. The Company aims to be the world’s best airline which strives to excel in everything employees do and provides the highest quality services. To carry out its vision, the mission is putting the safety and well-being of people and customers first, providing outstanding products and service, consistently deliver Service Straight from the Heart, producing superior financial returns, and being a socially and environmentally responsible company (Cathay Pacific, 2013). Cathay Pacific Airway keeps making long-term investments such as on catering and maintenance that develop aviation’s industry and enhance its position as a regional transportation in Hong Kong. It also develops sustainable development strategy to lead out its commitment to excellence and sense of responsibility. Cathay Pacific Airway is a member of the oneworld global airline alliance which joint networks to more than 750 destinations. Dragonair, a sister airline of Cathay Pacific Airway, is also a member of the oneworld (Cathay Pacific, 2013). As a corporate social responsibility company, Cathay Pacific Airway pays attention to the impacts on environment and identifies improvements. Furthermore, it concentrates on conservation and biodiversity that explore more biodiversity opportunities and activities in Hong Kong.

Product Portfolio

Cathay Pacific Airway serves passenger and cargo service which offers transportation service about 174 destinations in 40 countries and territories including Africa, China, India, Europe, America and Asia. The aircraft departures reach around 154,000 flights (Cathay Pacific, 2013).

For ground handling, Cathay Pacific Airway offers several ways for passenger’s check-in. Passenger can self-check-in for flight by kiosks at the airport. Moreover, passenger can use the applications of mobile phone for check-in but also check the flight schedule of arrival and departure. They can get much latest information about Cathay Pacific Airway from CX mobile.