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).
American Roy C Farrell and Australian Sydney H de Kantzow founded Cathay Pacific Airways on 24 September, 1946. It was based in Shanghai, the two men eventually moved to Hong Kong and established the airline. The new company began to operate passenger flights to Manila, Bangkok, Singapore and Shanghai. Expansion was rapidly growing later. In 1948, one of Hong Kong 's leading trading companies, Butterfield & Swire (today known as the Swire Group) took a 45% share in the company.
The main supplier for airline industry is airplane manufacturers. The top two manufacturers in the world currently are Boeing and Airbus. It is hardly for airline industry to switch their supplier since suitable substitute products are not available and the switching costs is high. Most of the airline companies have long term contracts with their suppliers since aircraft are high capital products and airline companies probably have more favourable credit terms if they are not switching their supplier. Therefore, airline industry does not have bargaining power on their manufacturers as US airline companies must depend on these two companies for buying and leasing planes.
The utilization of wide-body planes by Cathay Pacific has provided the company with an opportunity for maximisation of the comfort that is provided to the travellers. The company has adopted an innovative measure for transforming the seats to become more comfortable through ailing more space as well as different position to which the seats can be adjusted. This has been an innovative programme for upgrading the seats in many of the planes owned by the company. The plan made the seats to become fully flat, and be able to provide a bed extensions for travellers to sleep. The dimensions of the seats have been significantly improved to make the set wider and more comfortable to the travellers.
Only very high efficient operations can keep the new entrants out of industry. Bargaining power of suppliers: This is high, since there are only few suppliers in the industry, and no direct substitute for their products. Product is very important element for buyers industry. Boeing and Air Bus are the only major suppliers to the industry. Pilots are trained for a particular airline, switching cost can be significant if airline plans to change their plans.
Lower cost of flying urged more people to go on travel in a higher frequency and generated more income for entrepreneurs. This further intensified the air-bus market with additional competitors entering and existing firms were reorganizing strategically. Therefore, it was recommended that budget airline acquired another possible competitive edge, other than employing lower price, to establish an unceasing growth. References Fageda, X., Suau-Sanchez, P., & Mason, K. (2014). The evolving low-cost business model: Network implications of fare bundling and connecting flights in Europe.
1.0 INTRODUCTION Air Asia is one of the most renowned airlines in Malaysia. Air Asia was founded in 1993 and started operation in 1996. Initially, Air Asia has been led by DRB-HICOM. In 2001, DRB-HICOM was company that experiencing debt problems. Therefore, Air Asia has been taken over by Tune Air Sdn.
1. Introduction to the Company CHARLES & KEITH is one of the many locally set up brands that managed to hit success and enter the international market. The brand was founded by siblings Charles and Keith Wong. In 1996, the brothers started their first store, Amara Hotel Arcade nd operations with a hundred thousand dollars. The brothers started out by offering affordable shoes that catered to Asian women’s taste and preferences.
Influence of Globalization in Malaysia Introduction This paper focuses on how globalization affects Malaysia. Some of the main issues that will be highlighted are: the influence of globalization on International Business Trade for Malaysia, the roles of ASEAN Free Trade Agreement (AFTA) policies for ASEAN trade collaboration and competition, the macro environmental factors that international business should focus upon before launching market expansion, the roles of government in supporting international trade such as Foreign Direct Investment, how government should assist their businesses in competing in global arena: by protectionism or subsidizing, why has International Franchising strategy work and what are the industries that have utilized