General Environment Analysis of Cathay Pacific

Topics: Hong Kong, Cathay Pacific, Airline Pages: 3 (847 words) Published: April 24, 2012
General Environment Analysis of Cathay Pacific Airways
Cathay Pacific is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport. Then, what are the effects of the six factors on the Cathay Pacific Airway's performances in this society - Hong Kong? I will analyse them one by one. Demographic √

Hong Kong's population is 7.03 million. About 95% of the people of Hong Kong are of Chinese descent, the majority of whom are Taishanese, Chiu Chow, other Cantonese people, and Hakka. The remaining 5% of the population is composed of non-ethnic Chinese. There is a South Asian population of Indians, Pakistanis and Nepalese; some Vietnamese refugees have become permanent residents of Hong Kong. There are also Europeans (mostly British), Americans, Canadians, Japanese, and Koreans working in the city's commercial and financial sector. Hong Kong is one of the most densely populated areas in the world. Thus, it means that the market for airlines is huge. The more diversified the city, the more transfer of people. Besides, the most convenient and common transportation for these transfers is by plane. So we can see that demographic factor boosts the performance of Cathay Pacific Airways which is the first and largest airline in Hong Kong. Economic √

As one of the world's leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade. Hong Kong is the world's eleventh largest trading entity, with the total value of imports and exports exceeding its gross domestic product. Much of Hong Kong's exports consist of re-exports, which are products made outside of the territory, especially in mainland China, and distributed via Hong Kong. Its physical location has allowed the city to establish a transportation and logistics infrastructure that includes the world’s second busiest container port and the world’s busiest airport for international cargo. For this...

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