Business Health Check
Business Health Check
Travelling became more common in past few years because of air ticket fares and tours are getting less expensive than before. This is no longer a luxury activity. Airline industry plays one of the most important roles in tourism. This is a study of a low-cost airline in Hong Kong, HongKong Airlines.
Task 1
1.1 & 1.2 Analyze the Objectives of HongKong Airlines and Explain Factors that Impact on the Business
HongKong Airlines’ objective is to strive to innovate and make the travel experience more enjoyable for passengers. However, the company is facing quite a lot of difficulties on its business.
Evaluating the current positioning of HongKong Airlines using the Porter’s Five Forces Analysis.
The Threat of Entry * Airline industry is an expensive business. It requires large sum of money to buy or lease aircrafts in order to run the business. * It needs to staff a lot of professionals like pilots and engineerers. * It is not easy to get approval from the government.
This is difficult to enter the airline industry. The capital is very big. Besides money, it also needs to apply different kinds of licenses or get approval of, for example, flight schedules from the government. There are currently less than 5 local airlines in Hong Kong. HongKong Airlines has less threat of new entrant in the industry.
Threat of Substitutes * Cruise and bus tour. * People prefer to take train because it is cheaper. * Businessmen using conference calls instead of flying to other places for meetings because cutting cost became a trend and it saves time.
HongKong Airlines is strong in this Force because it is a low-cost airline. The air fare is cheap comparing to its main competitors, Cathay Pacific Airways and Dragonair. The fare is low so it is affordable to more people. If there is not a big difference between train or ferry fare, people prefer to go by air because it saves time on travelling. On the other hand, travelling by
Travelling became more common in past few years because of air ticket fares and tours are getting less expensive than before. This is no longer a luxury activity. Airline industry plays one of the most important roles in tourism. This is a study of a low-cost airline in Hong Kong, HongKong Airlines.
Task 1
1.1 & 1.2 Analyze the Objectives of HongKong Airlines and Explain Factors that Impact on the Business
HongKong Airlines’ objective is to strive to innovate and make the travel experience more enjoyable for passengers. However, the company is facing quite a lot of difficulties on its business.
Evaluating the current positioning of HongKong Airlines using the Porter’s Five Forces Analysis.
The Threat of Entry * Airline industry is an expensive business. It requires large sum of money to buy or lease aircrafts in order to run the business. * It needs to staff a lot of professionals like pilots and engineerers. * It is not easy to get approval from the government.
This is difficult to enter the airline industry. The capital is very big. Besides money, it also needs to apply different kinds of licenses or get approval of, for example, flight schedules from the government. There are currently less than 5 local airlines in Hong Kong. HongKong Airlines has less threat of new entrant in the industry.
Threat of Substitutes * Cruise and bus tour. * People prefer to take train because it is cheaper. * Businessmen using conference calls instead of flying to other places for meetings because cutting cost became a trend and it saves time.
HongKong Airlines is strong in this Force because it is a low-cost airline. The air fare is cheap comparing to its main competitors, Cathay Pacific Airways and Dragonair. The fare is low so it is affordable to more people. If there is not a big difference between train or ferry fare, people prefer to go by air because it saves time on travelling. On the other hand, travelling by