Problem statement for Cathay Pacific Airways essay

At the moment, the company implements the strategy of diversification in different related industries, which expand business activities of the company and open new markets for Cathay Pacific, although the company still faces the problem of the tight competition from the part of the major airlines, while cargo and passenger airlines still comprise the core of the company’s business activities (Stewart, 2004). In such a situation, the company faces the problem of the maintenance of its competitive position, on the one hand, and the fulfilment of its marketing strategy, on the other (Schein, 1999(. The diversification seems to be an effective solution but still it does not decrease its dependence on the airline industry. Consequently, the company should look for options to improve its performance in the airline industry and to take a stronger competitive position in the global market.

The enhancement of the marketing position of the company in the global market should comply with its marketing strategy, which has to be changed to make the growth of the company real and grounded on the consistent improvements being made by the company in its strategic development. At this point, it is important to place emphasis on the fact that the diversification of the company undertaken so far and that will be undertaken in the future brings quite a few positive results, which are annihilated by the tightening competition and the negative impact of the economic decline worldwide. The existing marketing strategy can work effectively in quite a few markets, such as Chinese one. However, if the company plans to expand its business globally, it should not rely on one market solely, even if this is Chinese market, which is one of the most dynamic and fast growing markets in the world. Instead, the company should consider other options of its strategic marketing development to enhance its position and to perform successfully.