Cathay Pacific Case Analysis
10/25/2007
Cathay Pacific (CP) is an interesting case because it is an example of a company attempting to work in isolation, vertically integrated and developing all their needs themselves. Truth is however; in today’s interconnected economy a company working independently simply can not compete. The world has become too dynamic and contains too many other companies developing better solutions to rely solely on one’s internal organization. Cathay eventually recognized this fact and turned to outsourcing to focus on its core competency, customer service and transportation.
Outsourcing should only be implemented when a company’s core competitive advantages are not affected and then when additional benefits are gained. To evaluate CP’s outsourcing, it is important to analyze each step taken. The first supplier used was SITA, who took over the management of CP’s network communication in order to enable CP to coordinate......
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Approximate Word Count: 610
Approximate Pages: 3 (260 words per double-spaced page) |