West Jet Case Study
WestJet Case Study
Current Market Situation
Strengths
The greatest strength of WestJet is their brand image. Through their superior customer service, WestJet has become one of the most trusted brands as well as Canada’s preferred airline. (Anonymous, 2011), (marketing weekly news, 2012)
One of the most important strengths of WestJet is their ability to provide low fares to consumers because of their low cost structure. (Yannopoulos, 2011)
A key strength for WestJet has been the ability to achieve success through a great corporate culture, and using Strategic hiring, training, and rewarding service oriented employees. They understand the importance of top-down commitment by management. (Karp, 2011), (Ostrower, 2012), (Carr, 2011)
Weaknesses
By only having one size of airplane, WestJet is restricted to number of flight destinations. Consumers may find alternative options such as flying from the United States of America. (Sherlock,2012)
Another drawback of having one size of airplanes limits the capacity of flyers. (Karp, 2012)
Opportunities
There will always be a reason for people to fly whether it’s for business or pleasure and they will always look for the lowest possible cost. In fact WestJet is actually seeing fewer empty seats. (The Ottawa Citizen, 2012)
Increase international growth by acquiring more Code sharing partners. (Sorensen, 2010), (Transportation Business Journal, 2012)
By agreeing with Bombardier to include smaller turboprop airplane WestJet can expand into smaller domestic markets without the risk of having to increase fees. (Ostrower, 2012), (Cameron, 2012), (David, 2012)
Threats
With Air Canada not performing so well, the Canadian government might allow foreign up-starts into the market. (Sorensen, 2012)
Surface transportation (automobiles, buses, rail transportation) could take away customers for short-haul trips.
A recession might slow the amount of people travelling. (Deveau, 2011)
Price of oil could increase
Current Market Situation
Strengths
The greatest strength of WestJet is their brand image. Through their superior customer service, WestJet has become one of the most trusted brands as well as Canada’s preferred airline. (Anonymous, 2011), (marketing weekly news, 2012)
One of the most important strengths of WestJet is their ability to provide low fares to consumers because of their low cost structure. (Yannopoulos, 2011)
A key strength for WestJet has been the ability to achieve success through a great corporate culture, and using Strategic hiring, training, and rewarding service oriented employees. They understand the importance of top-down commitment by management. (Karp, 2011), (Ostrower, 2012), (Carr, 2011)
Weaknesses
By only having one size of airplane, WestJet is restricted to number of flight destinations. Consumers may find alternative options such as flying from the United States of America. (Sherlock,2012)
Another drawback of having one size of airplanes limits the capacity of flyers. (Karp, 2012)
Opportunities
There will always be a reason for people to fly whether it’s for business or pleasure and they will always look for the lowest possible cost. In fact WestJet is actually seeing fewer empty seats. (The Ottawa Citizen, 2012)
Increase international growth by acquiring more Code sharing partners. (Sorensen, 2010), (Transportation Business Journal, 2012)
By agreeing with Bombardier to include smaller turboprop airplane WestJet can expand into smaller domestic markets without the risk of having to increase fees. (Ostrower, 2012), (Cameron, 2012), (David, 2012)
Threats
With Air Canada not performing so well, the Canadian government might allow foreign up-starts into the market. (Sorensen, 2012)
Surface transportation (automobiles, buses, rail transportation) could take away customers for short-haul trips.
A recession might slow the amount of people travelling. (Deveau, 2011)
Price of oil could increase
Cited: Canada 's most trusted brands in 2011. (2011). Marketing, 116(6), 17-21. Retrieved from http://search.proquest.com/docview/920212383?accountid=3455 Yannopoulos, P Karp, A. (2011). WestJet 's VALUE PROPOSITION. Air Transport World, 48(1), 46-50. Retrieved from http://search.proquest.com/docview/839037396?accountid=3455 Ostrower, J WestJet; WestJet is canada 's preferred airline. (2012). Marketing Weekly News, , 1282. Retrieved from http://search.proquest.com/docview/964463239?accountid=3455 Sorensen, C Carr, D. F. (2011). Westjet cuts costs with crowdsourcing. Informationweek - Online, , n/a. Retrieved from http://search.proquest.com/docview/896003391?accountid=3455 WestJet ranks globally as a top 10 airline Airlines, aviation; WestJet and korean air launch code-share agreement. (2012). Transportation Business Journal, , 109. Retrieved from http://search.proquest.com/docview/1015618972?accountid=3455 Deveau, S Canada; fewer empty seats at WestJet, air canada. (2012, Jul 06). The Ottawa Citizen, pp. E.3. Retrieved from http://search.proquest.com/docview/1024045691?accountid=3455