Case Study Cathay Pacific

B399

Management Policy And Strategy

TMA2

S10898765
Chan Yu Kit Question 1 A)

Create favorable conditions for successful diversification

Related diversification

Excess capacity in distribution systems, production facilities, or research operations.
Great potential to create value from transferable resources and practical skills.
Excess resources from general management.

Honda Motor Company is a good example of using related diversification through the core competency. While Honda is best known for its cars and trucks, the company actually began in the motorcycle business. By competing in this business, development and construction of small and reliable Honda engine unique ability. When management decided to diversify into

This is one of the first airlines to provide e-mail machine. It also provides online ticketing and check-in, you can download the schedule and notiFLY flight paging service, which provides real-time flight information updates via e-mail or phone to customers. IPermit plan, Taiwan, Hong Kong residents to apply for a visa through the Internet and from Hong Kong International Airport after collecting them. Its inflight entertainment system offers more than 20 video channels and audio / video-on-demand system, First and Business Class passengers. It is 80,000 travel industry professionals World Travel Awards 2003 for voting "for use on the world's leading machine

Cathay Pacific Airways flight does not keep in their difficult and sometimes let their customers choose to fly with the airline. In addition, flight attendants are not very pleasant and nice people traveling abroad so that the time to leave the airline as an option. Cathay Pacific has also been found difficult to reposition itself after the financial crisis. The company cannot handle a large number of people have lost confidence in the scandal. Strengths of Dragonair

Dragonair Stregths include developed logistics infrastructure, cargo handling capacity. Dragonair international flight frequency is one of China tops other airports. Critical mass effect freight consolidation
Clearance facilitation (if known shipper concept, consistent with the requirements of the document)

Also strategically located in the center of Asia, backed by the world, China's manufacturing and production base.

Dragonair steadily rising number of the world's most profitable airline market share. 3.3 years old, it has the world's youngest fleet and cost structure improvements; one of the highest per capita sales in the region.

Weakness of