Cathay Pacific Strategic Analysis Summary

Growing faster than manufacturing, retails and financial services, the Travel and Tourism industry outperformed the global economy is 2012 (World Travel and Tourism). This continuing increase in world travel and tourism is expected to help the airline business. JetBlue can take advantage of the growing

Flight Centre offers a very competitive price. The prices are usually are lower than its competitors when it comes to domestic and international flights. It provides the option of different prices ranges. These price ranges depend on the services that a customer requests. It provides economy class, business class, premium class, and first class price ranges. Due to its affordable prices and good services, it has grown to become a 13.5$ billion business comprising of more than 30 brands. It works had to keep up with the competition by providing best possible prices while ensuring customer loyalty (Flight Centre the Airfare Expert).

Cathay Pacific might present a complementary budget airlines subsidiary or alliance which offers essential carrier services with a lower fare. It will broaden its market share through an affordable price. This option extends its proportion of the entire industrial sales through minimum investments with maximum profitability. But it might be blemished likewise because the brand of C.P. was not initiated for budget traveling.

Organizations are constantly being challenged to identify ways to reduce operating cost, increase equipment capacity and utilization. There are many variables in why we see continued increases. One of the major effects is raising fuel cost. Companies are constantly battling this variable. This is not the only issue facing companies today. But it is certainly a concerning one to companies who rely on fuel for their company to thrive. These challenges are aligned with rising material costs as well. The economics of transportation affects the lives of all U.S. citizens and citizens of other nations. The

Jerome Simelane, the airline's Commercial GM, “By using what we have learned over the years about international airline best practice‚ we have also created a cost structure which allows us to offer competitive fares without cutting any corners on quality‚ safety and reliability."

The strategic objectives for Qantas’ future intent are to mitigate potential risks. This can be

Rising fuel prices has a huge impact on the airline industry. In an article published by the New York Times in 2007, oil prices were hovering ‘near $100 a barrel’ which caused the International Air Transport Association (IATA) to ‘slash’ their predicted profits for 2008 from ‘$7.8 billion to $5 billion’ (Clark, 2007). In 2008 high fuel prices were ‘dominant factor’ in the losses that faced the industry, and continued to same effect in 2009 (Dunn, 2009). Diagram 2 shows how fuel price has increased and fallen over the last 5 years.

Unlike traditional supplier/buyer relationships that had a narrow focus, contemporarily such relationships are becoming more strategic thereby yielding adequate reduction of risk and good technological leverage etc. It should be recognized that this relationship is the most powerful process of consumer satisfaction.

Fuel has consistently been one of the largest expense categories for domestic airlines, ranking second only to personnel expenses. During 2003, fuel costs represented, on average, over 16% of the total operating expenses for all U.S. domestic airlines studied by Richard Cobbs and Alex Wolf (2004). Moreover, airlines are generally unable to increase fares to offset any significant increase in fuel costs. From 2001 to 2003, these same airlines experienced a 25.9% compound annual increase in jet fuel costs while average airline pricing decreased by 0.1%, as measured by revenue per available seat mile (Cobbs and Wolf, 2004). Jet fuel costs have substantially risen over the past several years putting consistent pressure on airlines to maintain positive cash flows. Any saving in fuel costs works out to profit earned.

Cathay Pacific Airways Limited, which is managed by the Swire Group, is the largest airline and flag carrier of Hong Kong. The company with over 14,000 staff worldwide now, was founded by 1946. It based at Hong Kong International Airport, and its operations include scheduled passenger and cargo services to over 120 places around the world.

Low-cost carriers pose a serious threat to traditional "full service" airlines, since the high cost structure of full-service carriers prevents them from competing

Within the category of services, it applies to different types of customers such as family, solo travellers and business travellers, the key focus of this report is on the upper-class service for business travellers and how it influences business travellers to purchase a flight package from them instead of using their competitors Jet airways, British Airways or Emirates. We can discover the decision-making process and how it operates but it’s important to understand the marketing strategy behind the company that makes it very successful and attracts more business travellers to fly with them.

The implications of this analysis are that the focus on the Chinese market is justified. The Chinese air travel industry is booming, and indeed this is fueled by that country's rapid growth and the increased demand for

Aviation contributes approximately 2 percent of total greenhouse gas emissions, a figure which is projected to grow through 2050. Although fuel efficiency has improved by nearly 16 percent since the 1990s, future technologies—including better flight patterns, more-efficient engines, and alternative fuels—have promise for further emissions reductions. The profitability challenges of the early twenty-first century, however, affect the industry's ability to invest in new technology. (Hill, 2010 17-22)

Environmental forces are something that is intangible but somehow it still affects your firm¡¦s operation. Therefore, these environmental forces can be divided into groups such as internal and external forces. In the Cathay Pacific Airway case, the internal forces can be considered as its human resource management, since the labor cost is its main concern. In addition, government policies, competitors and customer satisfaction will be considered as its external forces.