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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 connections and revenue with global airline partners, the OneWorld alliance. This is an intelligent choice because transferring information is not proprietary, the change will boost revenues and doing it alone creates huge overcapacity because an SITA’s IP based system can accomplish the same goals for a much lower cost...
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