Strategic analysis for Cathay Pacific Airways Ltd.
1. Introduction
Cathay Pacific Airways Ltd. (C.P.) was established as early as 1950’s in Hong Kong, and fully dedicated to serve tourists from all around the globe to make the Hong Kong-established brand ultimately converted a transnational aviation carrier known as proficiency and security, encompassing an immense amount of investment of 148 aircraft. In addition to the investment on procuring aircraft, Cathay Pacific initiated accomplished match department such as ground-handling subsidiaries and catering departments, which have had headquartered nearby Hong Kong International airport. At the present time, Cathay Pacific still remains significantly dedicating on its domestic market Hong Kong, and signed new contracts for
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SWOT analysis for Cathay Pacific
In this section, an SWOT model will be carried out as one current external and one internal analysis for Cathay Pacific.
4.1 Opportunities
• Growth of global tourism industry
Amazingly the tourism and hospitality industry is nowadays one of the most powerful engines in various economies worldwide and contributed about 706 trillion U.S. dollars according to the data in 2014. (Statista.com) In 2014, international tourist arrivals had augmented to 1.13 billion and China unbeatably had most purchasing power on international travel expenditure with US$ 165 billion (unwto.org, 2015).
China is with largest population with 1.3 billion populations and ranked as the 2nd largest economy entity worldwide. Cathay Pacific and Hong Kong have the geographic advantage to enter the Mainland market. by 2012, it diversified the routes from only two to 23 and being ranked as the largest-scale foreign carrier in China.
• Optimism on prospect of Asian airlines market
After a moderate growth in 2010, overall, all the Asia-Pacific airlines companies had suffered from a surprisingly industrial recession. However, consulting institutions have an optimistic view in the upcoming
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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.
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SWOT is a contraction for the internal strengths and weaknesses of a firm and the environmental opportunities and threats facing the firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. WestJet Airline as a competitive, unique, and international company in the airline industry, they are facing strengths and weakness from internal, and opportunity and threats from external.
WestJet Airlines is a Canadian airline that differentiates itself with their low cost flights and exceptional customer service. The company’s philosophy is “just because you pay less for a flight, doesn’t mean you should get less.” WestJet has been growing rapidly since 1996, however, they believe in growing responsibly by being cautious of their environmental and community impact (“About us”, n.d.). As WestJet has a strong presence locally, our analysis will mainly focus on WestJet’s domestic segment.
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Over the last 60 years, tourism has benefited from continuous growth and diversification, becoming one of the largest as well as the fastest growing world’s economic sectors. Tourism becomes one of the major categories of global trade in services. Nowadays, 7% of global goods and services exports are contributed by international tourism, and for the last four years, it has grown faster than the general global trade.[ Exports from international tourism rise 4% in 2015, (2016, May 6). Retrieved from http://media.unwto.org/press-release/2016-05-03/exports-international-tourism-rise-4-2015]
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