Cathay Pacific Airlines Vision the Cathay Pacific Essay

Excerpt from Essay :

Cathay Pacific Airlines


The Cathay Pacific airline business can also potentially include in its primary objectives the subsequent 3 elements:

To create and manage a new regional air travel company striving particularly at connecting parts of Asia and Europe, via European and Asian hubs and global locations (Keller, 2002).

To supply service and absorb unmet needs in three main traffic groups: unserved and under-offered routes which popular presently is available or could be developed serving main niche marketplaces where demand is either unsatisfied or poorly sustained and meeting peak traffic needs on certain major regional, periodic, and variable routes where high load aspects may be anticipated in spite of available, but lower-quality rivalry (Keller, 2002).

To execute a business and online marketing strategy which will, from the very first year of execution of new flight procedures, achieve average passenger load aspects within the 65-85% range, based on route and season, as well as growing after that towards the 75-90% range, therefore making the most of incomes and ROI while reducing risk (Keller, 2002).


The suggested new mission for Cathay Pacific, simply mentioned, would be to fill a distinct segment within the growing air-line and cargo marketplaces connecting Europe to Asia and other pacific regions to attain high, and lucrative, load aspects by determining and serving major routes and city duos presently either unserved or are under-offered, or poorly offered, and wherein vital unmet needs are existent and also to set a higher (than existing) benchmark for air service as well as professionalism both inside the target market region and beyond.

Stakeholder mapping for Cathay Pacific mainly revolves around these primary stakeholders: from within the organizations -- the managers, the engineering employees, the unions, the customers and the shareholders; from outside the organization -- the competitors, the suppliers, as well as the government and activist groups. The majority of the power for the former group lies with the managers and the engineering employees especially since the possibility of penetrating into less traveled air routes depends on not just the administrative tasks of the managers to get the legal approvals for those routes but also depends on the engineering designs of the products to be able to sustain in the innovating change being suggested in this mission. The power for these internal stakeholders will thus revolve around aspects of resources control as well as global status. The majority of the power for the external stakeholders will like with the government as they will be playing a huge part in getting the necessary political legalities concluded for the less traveled routes. They will also need to take care of the necessary security or legal issues that might arise for the company when travelling these less traveled routes. The primary aspect of power for the government as the external stakeholder here will thus lie with their ability to negotiate agreements locally, nationally and internationally with all direct and indirect parties involved.

The strategy proposed for Cathay Pacific here is to expand into untraveled or less traveled routes so as to create a niche market and attain profits with minimal competition. The vision mission and financial stature that the company already has supports this particular strategy fully.

2/3. Strategic goals and Financial Performance

Through the use of the most recent aviation, electronic, and data-gathering technologies, by creating efficient and effective systems and focusing on delivering higher-quality from the inception, the Cathay Pacific airline strives towards guaranteeing the greatest degree of consumer support and safety, all founded on the requirements, needs, well-being, and ease of the air travelers and also the cargo consumers. This mixture of technology, service inclination, and quality oversight can assist in keeping costs to the bare minimum and increasing sales for the air travel and its shareholders (Keller, 2002). Additionally, it creates a the long lasting client satisfaction and excellent status which encourages the air travel to construct solid, and most vitally significant, interline plans essential to enlarge its scope as well as customer attraction in early phases, and that results in ongoing and sustained growth both inside and around the target market.

Additionally, the Cathay Pacific air travel is planned around, and managed utilizing, probably the most up-to-date electronic, data-gathering, as well as, aviation technologies to ascertain low operating as well as marketing costs, maximum competence in consumption of their assets, and an advanced customer support and convenience. This feasibility aspect is the element that separates this air travel from others- devoting the entire air travel, its workforce, and its business to offering an advanced customer support and convenience, and effectively meeting the requirements, needs, comfort, as well as, safety for the passenger - which will ensure the Cathay Pacific airline's rapid availability in the market and its long-standing progress and development (Adams et al., 2007). This particular control of Cathay Pacific makes this recommendation an extremely feasible one, in the short as well as the long-term, for internal as well as external stakeholders.

The financial consolidations presented her that were taken from the interim report (Cathay Pacific, 2012) show support for such a strategy without much risk as the financial records and capital stability is strong for airline.

4. SWOT Analysis

This SWOT analysis is focused on the value chain and networking at Cathay Pacific:


The biggest strength that Cathay Pacific has is its leadership style when it comes to creating a solid value for engineering. The Cathay Pacific also knows the value of its engineering services and uses its expertise in eth field of engineering to stand out amongst its competitors by ensuring that design the right engineering skills for the right transformation of the idea into branded products for the airline. Another big strength that Cathay Pacific enjoys over its competitors is that it makes engineering the top and most attractive quality of its manufacturing and has a very smooth value chain network despite the designing and manufacturing structures situated in different locations. This is one of the main reasons why it is also able to attract more adopter customers in the early stages when compared to its competitors and can thus demand premium prices from its customers.

Another major strength is that Cathay Pacific always aims to surprise its customers instead of relying on same monotonous engineering techniques and services.

The inbound logistics and operations of Cathay Pacific are also major strengths of Cathay Pacific as they involve all the engineering processes like materials handling, warehousing, storing, machining, packaging, assembling and maintenance amongst others. Cathay Pacific has tremendous control over these aspects and their expertise on engineering shines through in these aspects of value chain.


The biggest weakness for Cathay Pacific is their firm infrastructure which continues to be a very complicated one. This complicated structure is one of the biggest reasons why Cathay Pacific has found it hard to find success with numerous international alliances. This section of their value chain includes all aspects of management, finance, planning, accounting, legalities as well as governmental relations. The problem with all these processes being handled under one structure is that there is a dire need for a very precise designation of tasks and their distribution thereof which is the weakest link in the value chain at Cathay Pacific (Page, 2007).

Opportunity and Threats

The opportunity and threat for Cathay Pacific value chain lies in the same spectrum -- the penetration into routes that are not popularly taken by competing air flights. This paper will thus focus on this particular opportunity and threat. Also, the marketing and sales is a good opportunity for Cathay Pacific to effectively add more customers to their entire targeted audience. Once, this sector improves, the overall opportunity to strengthen the services will also surface and allow Cathay Pacific to take an edge over their competitors. The biggest threat right now for Cathay Pacific is the unreliability of their firm's infrastructure.

5. Additional Travel Services -- applying niche

In reaction towards the growing travel-market potential of the region, symbolized particularly through the large emigrant community residing and working in Europe, the Cathay Pacific airline established Stress-Free Holidays, a travel-deal (with its partners) to attract and increase its consumer base (Rothacher, 2004).

Both the Stress-Free Holidays package offered by Cathay Pacific as well as its partner companies are required to feed clients and visitors to the regional airline business and make use of the airline's services whenever possible, and can function as additional low-cost shops for marketing the air-travel business through their established online businesses.

6. Possible Merger

Higher demand and expanding airline market encourage the inception of the Cathay Pacific air travel to satisfy consumer demand and provide greater-quality passenger along with cargo support (Adams et al., 2007). This ensures that the recommended strategy for expanding into less traveled routes is not only a suitable venture at this point for Cathay Pacific but also a necessary one and one that will most likely give them an edge over their competitors.

The Cathay Pacific air travel will base its business and marketing…

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