Cathay_Pacific_-12_03_2014 - Tsang Pak Yuen Jesse UB 13026464 BSc(Hons Business and Management Studies Level 2 Day Time Intakes 4 Economic of Industry

Cathay_Pacific_-12_03_2014 - Tsang Pak Yuen Jesse UB...

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Tsang Pak Yuen Jesse UB: 13026464BSc (Hons) Business and Management Studies Level 2 Day Time Intakes 4Economic of Industry Assignment CATHAY PACIFIC, founded by Roy.C.Farrell and Sydney H de Kantzow in 1946. It is now an international airline registered and based in Hong Kong serving over 180 destinations in more than 40 countries. It is more like an Oligopoly companybecause even though it is already a giant in financial and market network, small airlines firm could still come in and challenge its places but only in a short run. Cathay Pacific provides both airline business and non-airline business such as passengers and cargo operations and catering, ground handling and aircraft ramp handling services. Cathay Pacific is also one of the largest airline company in Asia Pacific region. According to Forbes, up to date of May 2014, Cathay Pacific has USD$7.45 billion market cap and ranked as 972 in “Global 2000”. Cathay Pacific’s vision is “to be the world’s best airline”1
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Tsang Pak Yuen Jesse UB: 13026464Strengths. First, they have strong financial backup and anadvantage of market shares since Cathay Pacific has both corporate,joint venture and subsidiary with 14 companies up to 2010. CathayPacific also owns 100 percent of some of the companies’ marketshares. Furthermore, Cathay Pacific is ranked as the 8thmostprofitable airline and place 17ththe biggest airline in the world.Therefore Cathay Pacific has a very strong financial back up in itsown market. Second, Cathay Pacific is a hub carrier in Asia Pacific regionand worldwide as well. Up to 2011 they already have over 110+destinations worldwide within 42 countries and Dragon Air, theirsubsidiary company have 44 destinations in Asia Pacific region.Third, entry barrier. Since Cathay Pacific airline has suchhuge amount of assets and dominant relationship with companies inthe market, it is extremely hard for new challengers to enter themarket and challenge Cathay for its place. Because if you wanted to
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