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| Topic: |
Technology
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| Number of pages / Number of words: |
3 / 598 |
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When IBM took over the data centers in Sydney, it allowed IBM to import best practices from across the globe and also allowed the full capacity of the data centers to be utilized by serving additional clients. Best practices bring lower costs to an operation and higher capacity usage brings greater revenue, all good things but again CP only gets a portion and IBM receives the rest...
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This is the critical area where CP made its mistakes. Due to the financial situations caused from 9/11, the new airport and China taking back Hong Kong; CP shifted to survival mode and cut costs by outsourcing indiscriminately. This damaged the company a few years later, because many of those decisions were reversed with the EVOLVE IT strategy...
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General points of the essay
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Cathay Pacific HBS Case Analysis
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