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600 x 400 Strategic Management at Cathay Pacific

Gaining Competitive Advantage at Cathay Pacific

Muhammad Zeeshan Khan (Date: 10.06.2013)


Cathay Pacific is a leading airline in Asia Pacific region and also in other parts of the world (Appendix 2). The company is having a competitive advantage over its competitors in so many areas, which is helpful for Cathay Pacific to remain competitive. The following initiative of Cathay Pacific has lead the company towards achieving a competitive edge. The major competitive advantage of Cathay Pacific is that it has outsourced 65% of its operation that has reduced its operational cost and increased profitability by six folds as compared to previous years. However, the other disadvantages of outsourcing are also associated with this initiative of the company. Secondly, the company’s initiative towards investment in innovative technologies and upgradation of existing technologies are also helping the company to remain competitive. Another advantage of Cathay Pacific is that the Australian Government has offered it the 20% exemption of tax along with resident visas for staff. This advantage helps the company to save its cost and improve profitability from operations. However, this location specific advantage of Cathay Pacific is only in Australia, while the destinations of Cathay Pacific are not privileged like this. These competitive advantages of Cathay Pacific have been achieved specifically through strategy initiatives. However, the implications for Cathay Pacific are to improve strategic management in order to gain more competitive advantages over its competitors.

 


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