Cathay Pacific Case Study
With its headquarters and main hub at Hong Kong International Airport, Cathay Pacific Airways Limited or simply Cathay Pacific refers to the flag carrier of Hong Kong. Cathay Pacific was founded by American Roy C Farrell and Australian Sydney H de Kantzow on the 24th of September 1946. Cathay Pacific aspires to be a leader and will help to share future policies that affect the aviation industry by working with government and its partners as the strength. Cathay Pacific also identifies leveraging its brand and demonstrating that it is a company that can be trusted is its next target.
Social and Economic
Basically, Cathay Pacific is committed to Hong Kong and its people that is why through its organisation and management style, various conditions are created to make it possible to deliver campaigns that in part a substantial investment to developing the industry and enhancing the company’s position as a regional transportation hub (Cathay Pacific online; Beckford, 1998, p. 185).
Economically, through the world renowned global airline alliance, Cathay Pacific was able to be a flight of choice since it can provide greater convenience of being able to choose flights on more days, or more flights on any given day. Unique to Cathay Pacific are its campaigns that are initiated to further build and enhance the brand through publicity efforts. Stone, Bond and Foss (p. 228) noted that Cathay Pacific was able to predict customer behaviours by means of personalising service and targeting marketing campaigns.
As such, Cathay Pacific runs over 150 campaigns a year with its three staff and has delivered a 50% increase in ROI of the company. For its corporate brand equity for instance, Cathay Pacific had its tagline as “It’s the little things that move you” (Roberto and Roberto, 2008). These little things are known to be the satisfiers to the passengers which include the smiling flight attendants and freshly-prepared foods in-flight. The latest advertising campaign is “Great service. Great people. Great fares.” (Roberto and Roberto, 2008).
Customer and Competitors
A key strength is through its dynamic team, the highest quality service could be provided hence making the customers happy with their choice. Further, Cathay Pacific is also committed to Hong Kong and its people that is why through its organisation and management style, various conditions are created to make it possible to deliver campaigns that in part a substantial investment to developing the industry and enhancing the company’s position as a regional transportation hub (Cathay Pacific online; Beckford, 1998, p. 185).
As such, the service is renowned because of the people who are always willing to go the extra mile to make the passenger feel special. The people use their training and intuition to provide all those little things that passengers may want even before they start asking for them so passengers can enjoy an exceptional travel experience.
Moreover, Cathay Pacific invests heavily on loyalty programmes as part of its customer relationship approach. There are two loyalty programmes for Cathay Pacific and one among this is the Marco Polo Club, which is a frequent flyer program.
Further, acquiring Dragonair is a change that requires trading off of assets, capitalising on declining profitability of the acquiree. What Cathay Pacific and Dragonair can do to remain competitive in the regional and global airline industries is to strongly disprove the open skies in Hong Kong. Major routes of Cathay Pacific are also being served by five foreign airlines hence passengers have wide choices of carriers as well as schedules and fares of flights. Open skies therefore could threaten the operation of Cathay Pacific and Dragonair. This is to protect the financial stability of Hong Kong as well as that of the two carriers. Cathay Pacific and Dragonair have crucial roles in maintaining the interests of the entire aviation industry particularly in the Asia Pacific region (HKTDC, 2000).
In utilising these short term wins, Cathay Pacific would be able to capitalise on outbound passenger traffic and its increase in the coming years. While Cathay Pacific is maximising the opportunities provided by the access to Mainland China and extend the operation into cities that Dragonair operates, Dragonair could benefit in the volume of cargos that is coming in and out of China as well. Aside from this, Dragonair could eliminate the other competitions to Cathay Pacific in the long run like All Nippon Airways (Flattoau, Matthews and Lott, 2006).
References
Cathay Pacific information, retrieved on 30 November 2010, from http://www.cathaypacific.com.
Flattoau, J, Matthews, N & Lott, S 2006, ‘Big Deal?’ Aviation Week & Space Technology, vol. 164, no. 5, pp. 41-42.
Roberto, A & Roberto, N 2008, ‘Marketing Rx: Right corporate brand equity for service firm,’ Inquirer, retrieved on 30 November 2010, from http://services.inquirer.net.
Stone, M, Bond, A & Foss, B 2004, Consumer insight: how to use data and market research to get closer to your customer, Kogan Page Publishers.
The Reality of Open Skies and Its Relevance for Hong Kong, 2000, HKTDC, retrieved on 30 November 2010, from http://info.hktdc.com/message/404.htm.
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