Cathay Pacific Pest Analysis Summary

Strategic Analysis of Cathay Pacific Airways Ltd.

1. Introduction

Cathay Pacific Airways Ltd. (C.P.) was established in 1940’s in Hong Kong and has been well-known as proficiency and security. Meanwhile, Cathay Pacific still remains significantly dedicating on its domestic market Hong Kong, besides, it will present other supplementary 72 brand-new aircraft by 2024 (Cathay Pacific Annual Report, 2015).

Altogether, there are maximum 33, 000 employees are simultaneously collaborating underneath the Cathay Pacific syndicate cross-broadly, and there are approximately 25,000 in Hong Kong. The corporation is on the list of the program “The Stock Exchange of Hong Kong Limited”, as Air China and Swire Pacific representing a considerable proportion

External analysis

2.1 PEST analysis

• Political

The institution is bound by enactments of legislation since C.P. operates in surpassing 50 countries, and vulnerable to enacted legislatures. Consequently, it has ceaselessly assessed those political atmospheres, alongside formulating for any potential issue such as mechanistic emission.

• Economic

Cathay Pacific might have been excessively influenced by the unpredictable exchange rate and cut back. And moreover, the conversion scale of a macro downsizing economy of Asia has sway on Hong Kong and even across Asian nations. The pattern of the slump in multiple Asian economic entities purged C.P. to shrink its operational scopes. The Asian visitors nowadays prefer to make holidays more economically.

• Social

In the context of a fast-paced society, C.P. makes confirmation that the service, advancement, and efficiency will be acknowledged eventually by its clients. It verifies that it is society-beneficial and has a positive association with the public.

• Technological

Most recent innovation must be adjusted by airliners to compete. Furthermore, the utilization of advanced development of aircraft is not only applied to fuel consumption, but also those cosset from claiming operation cost as well as fossil effectiveness. Since innovation has rapidly transformed and upgraded, organizations must be updated and well-informed associating with the modern tendency and

Hong Kong has the geographic advantage to enter the Asian market.

4.2 Threats

Despite Cathay Pacific is one of the foremost players in the airline industry in Asia-Pacific, there are still powerful competitors such as Singapore Airlines, Qatar, and Emirates Airlines. And the fee of fuel is its most significant ratio of the fixed expenses for these. According to data from the financial report of 2015, the fuel cost of Cathay and Dragonair was about HK$ 16,619 million, declined by 11.6%, in contradiction of the 2014’s. However, it was due to the dramatic slump from 2014 (Cathay Pacific Annual Report, 2015).

4.3