Limitations of Alternative for Cathay Pacific Airways essay

At the moment, the implementation of the low cost strategy raises the problem of the adaptation of existing airlines to low cost requirements. To put it more precisely, today, Cathay Pacific Airways offers services of the higher quality but low cost strategy implies offering minimal services to customers to save costs of flights and offer services at the lower price (Armenakis, Harris, & Mossholdern, 1993). Such restructuring may raise the problem of job cuts because, if the company offers fewer services, then the company will not need such a staff as it employs at the moment.

Another limitation of the proposed strategy is cutting off the premium segment from regional airlines operations of the company, although regional airlines may operate at both the current level and, therefore, price, and the low cost level and, therefore, lower price.

Thus, Cathay Pacific Airways is one of the largest airlines in the world. However, the current marketing strategy aiming at the diversification in the airline-related industries is quite uncertain and can fail to bring positive effects for the marketing development of the company. Instead, it is possible to recommend implementing the marketing strategy aiming at the development of a low cost branch of the company that will attract new customers, improve the financial position of the company and increase its market share globally.