CATHAY PACIFIC: POSITIONING FOR COMPETITIVE ADVANTAGE
CASE STUDY SOLUTION
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SYNOPSIS
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Cathay Pacific was founded in Hong Kong in 1946. As of July 2023, Cathay Pacific passenger and cargo airlines
offered scheduled services to 81 destinations in 30 countries and regions worldwide, including 14 destinations
in the Chinese Mainland. The group also served an additional 131 destinations in 21 countries and regions
through code-share agreements.2 Effective January 1, 2023, Lavinia Lau (Lau) was appointed chief customer
and commercial officer and executive director on the board of Cathay Pacific. In August 2023 she faced the
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decision of what to propose to position Cathay Pacific to achieve its ambitious vision of becoming one of the
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world’s greatest service brands. What was the current positioning of Cathay Pacific relative to other airlines?
Who should its target customers be? What should its message be to appeal to those target customers?
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OBJECTIVES
1. Understand how to position a brand for competitive advantage, based on an understanding of the
important factors passengers consider when choosing an airline.
2. Understand how to segment a market, identify target market(s), and determine the unique value claim
and reason to believe for each target market.
The Case Solution Starts From page 5
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ASSIGNMENT QUESTIONS
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1. Who are Cathay Pacific’s key competitors?
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2. What is Cathay Pacific’s current positioning?
3. What are the personas for Cathay Pacific’s Chinese customers?
4. How can Lau position Cathay Pacific to achieve competitive advantage?
5. What should Cathay Pacific’s message be to appeal to its customers?
6. What should Lau do to achieve Cathay Pacific’s ambitious vision of becoming one of the world’s
greatest service brands?
The Case Solution Starts From page 5
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ANALYSIS
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1. Who are Cathay Pacific’s key competitors?
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five Ws
and an H: when, where, what, who, why, and how.
• When was your last trip out of the city?
• Where did you go?
• What mode of transportation did you take: plane, high-speed rail, train, bus, or car?
• If you took a plane, was the airline Cathay Pacific? If yes, did you consider another airline? Why or
why not? If you did not take Cathay Pacific, why not?
• Who did you go with on your last trip?
• Why did you take the trip?
• How did you plan for your trip?
The Case Solution Starts From page 5
, EXHIBIT -1: POSITIONING MAP FOR CATHAY PACIFIC AIRWAYS LIMITED, SINGAPORE
AIRLINES, UNITED AIRLINES INC., AND HONG KONG EXPRESS AIRWAYS LIMITED
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The Case Solution Starts From page 5
CASE STUDY SOLUTION
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SYNOPSIS
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Cathay Pacific was founded in Hong Kong in 1946. As of July 2023, Cathay Pacific passenger and cargo airlines
offered scheduled services to 81 destinations in 30 countries and regions worldwide, including 14 destinations
in the Chinese Mainland. The group also served an additional 131 destinations in 21 countries and regions
through code-share agreements.2 Effective January 1, 2023, Lavinia Lau (Lau) was appointed chief customer
and commercial officer and executive director on the board of Cathay Pacific. In August 2023 she faced the
n
decision of what to propose to position Cathay Pacific to achieve its ambitious vision of becoming one of the
tio
world’s greatest service brands. What was the current positioning of Cathay Pacific relative to other airlines?
Who should its target customers be? What should its message be to appeal to those target customers?
lu
So
OBJECTIVES
1. Understand how to position a brand for competitive advantage, based on an understanding of the
important factors passengers consider when choosing an airline.
2. Understand how to segment a market, identify target market(s), and determine the unique value claim
and reason to believe for each target market.
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
ASSIGNMENT QUESTIONS
lu
1. Who are Cathay Pacific’s key competitors?
So
2. What is Cathay Pacific’s current positioning?
3. What are the personas for Cathay Pacific’s Chinese customers?
4. How can Lau position Cathay Pacific to achieve competitive advantage?
5. What should Cathay Pacific’s message be to appeal to its customers?
6. What should Lau do to achieve Cathay Pacific’s ambitious vision of becoming one of the world’s
greatest service brands?
The Case Solution Starts From page 5
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m
Sa
n
tio
ANALYSIS
lu
1. Who are Cathay Pacific’s key competitors?
So
five Ws
and an H: when, where, what, who, why, and how.
• When was your last trip out of the city?
• Where did you go?
• What mode of transportation did you take: plane, high-speed rail, train, bus, or car?
• If you took a plane, was the airline Cathay Pacific? If yes, did you consider another airline? Why or
why not? If you did not take Cathay Pacific, why not?
• Who did you go with on your last trip?
• Why did you take the trip?
• How did you plan for your trip?
The Case Solution Starts From page 5
, EXHIBIT -1: POSITIONING MAP FOR CATHAY PACIFIC AIRWAYS LIMITED, SINGAPORE
AIRLINES, UNITED AIRLINES INC., AND HONG KONG EXPRESS AIRWAYS LIMITED
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The Case Solution Starts From page 5
