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Cathay Pacific

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Chan aliceceeesy

on 4 July 2014

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Transcript of Cathay Pacific

"Our vision is to be the world’s best airline. Being the best means that we always strive to excel in everything we do. Our dynamic team provides the highest quality service so that our customers are happy they chose Cathay Pacific."
Frequent international travellers

Minor shareholders
Keep satisfied
Key players
SWIRE Pacific Limited (owns 45% shares)
Minimal efforts
Oneworld Alliance
Keep informed
Non-frequent travellers
Hong Kong Government
Civil Aviation Department
Partners (e.g.: Air New Zealand)
The paradigm
It sets standards; fulfills safety issues; provides long history of services in Hong Kong; is professional; focuses on human assets; Hong Kong people respect us and will always choose us.

Flash bomb
Red uniform

Brush-wing logo
Power structure
Flight crew

Cabin crew
Organisational structure
Routines and Rituals
Training programs emphasize on 'engineering' and 'flight safety'
Control systems
Tight controls to fulfill requirements of CAD
Top down control in detail both of the suppliers and operations
Resource capability and competences
Physical resources:
Financial resources:
Human resources:
Intellectual capital:
141 passenger aircraft, with passenger capacity ranging from 242- 359
24 cargo aircrafts
Financial supports from SWIRE
Well trained and friendly flight and cabin crew
Well-known brand in Hong Kong
Strong marketing team
Resource capability and competences
Threshold resources:
Threshold competences:
Unique resources:
Core competences:
Well-trained, friendly ground handling staffs and cabin crew
Fancy airport lounges
Well-structured company
Well-designed 1st class in-flight environment
Enormous team in Hong Kong (when compare to other operating airlines in Hong Kong)
Strong marketing
Well-known brand in Hong Kong
Value Chain Application
The Macro-environment
Macro-environment- PESTLE
Countries with political instability affect flights operations (compensation for some passengers; delay and cancel flights?)
Government policies on developing new airport terminals
Inflation problems
Additional taxes in other countries imposed upon the air-travelling public
Macro-environment- PESTLE
Increase internet usage
Increase people for luxurious services
Hong Kong people putting budget as first priority than service
IT systems are having shorter life cycles
Macro-environment- PESTLE
Regulations from Civil Aviation Department
HK government laws (e.g. Minimum wage law)
Increased demand from environmentalists to reduce carbon dioxide emission
Competitors/ Market- Porter's 5 Forces
Supplier power
High supplier power in airline industry
Few dominant suppliers, no more alternatives for Cathay Pacific to find substitutes in the market
Buyer Power
Many choices in the market favours buyers
More than 30 countries operate around thousand of Airlines
Competitors/ Market- Porter's 5 Forces
Intensity of rivalry
High intensity
Singapore Airlines, which has similar size promotes fierce competition
Industry growth is steady
Low extent of differentiation as airlines operate more or less the same
Threat of entrants
Low in airline industry due to huge cost of investment, barriers to entry is high
Competitors/ Market- Porter's 5 Forces
Threat of substitutes
Trains to Mainland
Industry- Industry life cycle
Jet fuel Suppliers
Fleets suppliers: Boeing and Airbus
SWIRE Pacific Limited is the key player in the business
Training programs are well planned to employees
Good Financial support from SWIRE
Well-known brand in HK
Large customer databases
Selling experience to passengers
Strong union power
Flight crew and cabin crew have the largest power in the power structure of the company
Not popular in the other countries
Delays in other countries
No self-service air-ticket kiosk
Increase usage of internet favours e-marketing
Increase in people demanding luxurious services
An aircraft manufacturer is developing in China, which may help in cost reduction in the future
Increase in people demanding budget flight than service
Increase internet usage, reputation maybe destroyed by rumors within a short period of time
Human Resources Management
Enormous team, 24,200 employees based in HK

Provides appropriate training

Recruits appropriate staffs (friendly)
Firm infrastructure
Structured and complex organisation

Well-developed control systems

Large customer database

Fancy airport lounges
Well-developed e-ticket ordering systems

Online check-in

Outbound travel alerts

In-flight e-mail system
New procurement system to increase efficiency of purchasing to support inbound logistics
Marketing and sales
Increased online promotional channels (cost reduction)

Strong marketing team (from recruitment)
Full transcript