INTRODUCTION Cebu Pacifc Air is the leading low-cost carrier in the Philippines, it pioneered the low are, great !alue strateg" in the local a!iation industr"# Cebu pacifc Air adopted the low-cost carrier business $odel# The cor ele$ent o the %ow Cost-Carrier &%CC' strateg" is to o(er a(ordable ser!ice to passenger# The group operates with a )eet o *+ aircrat with e tensi!e route ser!ing * do$estic routes and ./ international routes# The 0roup has . principal distribution channels1 Online boo2ing3 direct s through boo2ing sales o4ces and call center and go!ern$ent 5 corporate client6s accounts3 and third part" sales outlets# SWOT ANALYSIS S T R E N G T H • Cebu Pacifc Air has the $ost aircrat or a low cost carrier in the countr"# • 7ealth" balance sheet support business growth • Cebu Pacifc Air operates one o the "oungest )eets in the world# W E A K N E S S E S Additional costs that arebeing paid b" their passenger due to website ad$inistration ee# Cebu Pacifc Air6s propert" and e8uip$ent a$ounted to P7P 9:#:. billion# There is no airbus o Cebu Pacifc Air has reached ;urope# O P P O R T U N I T I E S The signifcant saet" concern o the ICA ha!e been lited# Cebu Pacifc Air $ade a strategic alliance with TigerAir 0roup ;uropean Co$$ission lits ban on Cebu Pacifc Air# T H R E A T S Upco$ing t"phoons in the Philippines# The <alue o Philippine Peso di$inishes against U= Dollar is a actor on uel e penses# >or2 schedule $ight be an issue when Cebu Pacifc Air starts its operation in ;urope and A$erica# Recommendation / Case Study / Scenaio Cebu Pacifc Air $ission state$ent include that the" pro!ide opportunities or proessional growth to their e$plo"ees and the" pro!ide sae and reliable trips to their passenger# In line with this, we reco$$end that Cebu Pacifc Air should i$pose strict training to their pilots, and it includes training or )ight operations and ai inspection# Their $ission state$ent will onl" be ulflled once the" das undergone strict training and the" will eel saer# Aside ro$ this reason, Cebu Pacifc Air pil will also beco$e $ore e4cient and e(ecti!e# It is li2e a return on In!est$ent or the in!ested trainings o Cebu Pacifc Air#

Cebu Pacific SWOT Analysis

Download DOCX Report

Upload
mark-lester-navarro
View
617
Download
16

Embed Size (px)

DESCRIPTION

Cebu Pacific SWOT Analysis - Philippines

Citation preview

INTRODUCTIONCebu Pacific Air is the leading low-cost carrier in the Philippines, it pioneered the low fare, great value strategy in the local aviation industry. Cebu pacific Air adopted the low-cost carrier business model. The core element of the Low Cost-Carrier (LCC) strategy is to offer affordable air service to passenger. The group operates with a fleet of 52 aircraft with extensive route serving 59 domestic routes and 36 international routes. The Group has 3 principal distribution channels: Online booking; direct sales through booking sales offices and call center and government / corporate clients accounts; and third party sales outlets.

SWOT ANALYSIS

S T R E N G T H Cebu Pacific Air has the most aircraft for a low cost carrier in the country. Healthy balance sheet support business growth Cebu Pacific Air operates one of the youngest fleets in the world.W E A K N E S S E S Additional costs that are being paid by their passenger due to website administration fee. Cebu Pacific Airs property and equipment amounted to PHP 47.73 billion. There is no airbus of Cebu Pacific Air has reached Europe.

O P P O R T U N I T I E S The significant safety concern of the ICA have been lifted. Cebu Pacific Air made a strategic alliance with TigerAir Group European Commission lifts ban on Cebu Pacific Air.T H R E A T S Upcoming typhoons in the Philippines. The Value of Philippine Peso diminishes against US Dollar is a factor on fuel expenses. Work schedule might be an issue when Cebu Pacific Air starts its operation in Europe and America.

Recommendation / Case Study / Scenario Cebu Pacific Air mission statement include that they provide opportunities for professional growth to their employees and they provide safe and reliable trips to their passenger. In line with this, we recommend that Cebu Pacific Air should impose strict training to their pilots, and it includes training for flight operations and aircraft inspection. Their mission statement will only be fulfilled once they das undergone strict training and they will feel safer. Aside from this reason, Cebu Pacific Air pilot will also become more efficient and effective. It is like a return on Investment for the invested trainings of Cebu Pacific Air. Extremely Sensitive to Changes in the Foreign Exchange Market. Initiate coverage with a BUY rating. The lifting of the ban in the European Union will be a very good opportunity for the firm. The lease of addition aircrafts will also boast the capacity of Cebu Pacific Air. This will further improve the revenues of the firm. Cebu Pacific Air will also the opening its door to America. The company will be scheduling flights in the USA at the end of 2014. The company incurred huge amounts of losses when the Philippines Peso depreciated against other currencies. The passenger carried by Cebu Pacific Air increased this year as opposed to 2012 nut the net income massively dropped. This is mainly due to the depreciation of the Philippine Peso which causes the company to recognized losses in their foreign exchange investment. Depreciation of the Philippine Peso Against other currencies. The company has a lot of investment in foreign exchange. The past year, it incurred a whopping PHP 2, 063, 007,996 loss in foreign exchange. It affected the companys bottom line severely. The income for the year 2013 dropped massively. The company reported a net income of PHP 511, 946, 229 for the year 2013 and its a great decline from the last year net income which was PHP 3, 572, 014, 263.