Three strategic alternatives and evaluation for Cathay Pacific Airways essay
The company should consider possible alternatives to the current marketing strategy. The elaboration and implementation of an alternative marketing strategy is essential because the company is likely to face considerable problems, while implementing the current strategy of the diversification focusing on new industries, products and services, which are bound to the airline industry. In such a situation, the company should either enhance its position in their airline industry or diversify its operations by means of entering new industries, which are not related to the airline industry. However, the latter strategy is too risky and costly. Hence, it is possible to suggest several strategies that can enhance the position of Cathay Pacific Airways in the global airline industry today.
First, the company may focus on mergers with other companies that will allow Cathay Pacific Airways to expand its market share fast. Mergers can open new markets for the company fast but this strategy is costly in terms of the independence of the company and its marketing policies. In addition, the company will need to complete restructuring of the new organization because the merger with another airline will need adaptation of the organizational structure of the new company to traditions and needs of both companies that have merged.
Second, the company can focus on the acquisition of minor airlines to enhance its positions in target markets. For instance, the company can acquire regional airlines to enhance its long haul flights. In such a way, customers can choose Cathay Pacific Airways to travel by air using its regional subsidiaries with the further use of long haul flights of the company. As a result, customers will be able to travel to virtually any part of the world with minimal time waste since they will use Cathay Pacific Airways at all levels from regional to international. The strategy of acquisitions is extremely costly and probably not affordable for the company, if it fails to improve its financial performance immediately. Moreover, this strategy raises the problem of the widening communication gaps because of cultural differences between professionals working in the company and in companies acquired by Cathay Pacific Airways.
Third, Cathay Pacific Airways may introduce a low cost branch or subsidiary, which can offer basic airline services to customers but at the lower price compared to the mainstream company. In such a way, the company will diversify its services and offer customers services, which are affordable for them. This alternative will open larger opportunities for the company to expand its market share since low cost airlines play an important part in the airline market, especially at the regional level. In fact, this strategy may be also imperfect but still it allows the company to start saving costs and gaining a new segment of the market, which is very prospective, in light of the growing popularity of low cost airlines in the world.
