Westjet Swot Analysis Essay
West can easily beat competitors in field of customers attraction, company that boards its customers according to socks or shoes color, or even allows free flies for people with name “Love” or “Heart” on Valentine’s Day. Better seat utilization with the smaller aircrafts with 100 seats can provide high-occupancy and could be more profitable compared to sass Boeing aircrafts with 140 to 160 seats. Regarding to emulation of Southwest Airlines’ model of business, more specifically, employees of West take part in profit sharing. This strategy rises feeling of ownership of employees and.
Weaknesses: As a company, West does not show a lot of weaknesses. However,the lack of international and Trans-continental flights in the world of rapidly rising economies, international business and marketplaces be count as a weakness. Customers may not be provided with the international destination they are looking for and could be turned to competing airlines. When higher-class travelers are looking to fly with some added comfort and special service, West does not provide any sort of first class seating which can be a factor of lost business.
However, December 2012 West launched”premium economy’ class flights program, which is designed to satisfy particular customer’s demands with extra legroom and services. Travelers
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Opportunities: West became one of significant air transportation companies since its birth in 1996. After conquering all Canadian destination, West have chance to compete in the international scene. Today it has not that many destinations outside of North America, nevertheless with this strategy possession of their fleet with 53 new aircrafts to support increased demand West bets to be in the top 5 international airline companies by 2016. Also, West plans to take advantages of the Internet resources, such as Backbone, Twitter to grow company’s loyalty and to gain better establishment in the market.
Moreover, West started new loyalty program that will help typewrote credit card numbers of frequent flyers. Len addition, West signed agreement of collaboration with Air France company adopting their fleets to European destinations using Boeing 737 crafts, that could help to get along well in the international competition. The main competitor of West Jet Company is another Canadian carrier Air Canada, which is appeared as the leader of Canadian air transportation market. However, comparing to Air Canada, West has a row of benefits, such as: reasonable ticket fare, innovative approach to connection with travelers.
West’s employees always try to create the cheerful atmosphere during flights. By their calculations, the company is going to be one of the five most successful international airlines in the world providing their guests with experience that will change air travel forever. Moreover, they truly can become number one Canadian carrier ahead Air Canada; however, entering international market West can face a number of problems such as increasing of fuel cost or shortage of aircrafts in their fleet. Threats: The airline industry is Just one part of a bigger transportation industry.
West’s potential customers all face the alternative option of different transportation such as bus lines, train systems, ferry services, and driving their own vehicle. Customers also have the choice of flying with a competing airline, which is a major threat because some people prefer airlines such as American Airlines, Air Canada or other one. This only becomes a bigger threat for West as they move more into the international system, having to compete with larger more experimentation’s all over the world.
The broader environment provides huge threats towards West due to the small margin of revenue to operation cost. The rising cost of fuel proposes many problems, as West must raise prices to stay profitable against fuel, as well as dealing with unstable economy that reduces demand. As the experience in 1 1 September 2001 the threat of terrorists is still out there, and holds the potential to cause many problems toward West and their service of flying. Any possibility of natural phenomenon could easily affect flights systems and demand of customers.
Due to hybrid model from discount no-frills to Hotpot strong strategy adding different shtick. 4. How to solve problems Works Cited Tim, Paul R. Customer Service: Career Success Through Customer Loyalty. Fifth Edition. Prentice Hall: Pearson Du. , 2011. Print. Http://www. Straight. Com/bologna/ can’t-afford-first-class-west]et-set-offer-premium-economy-seating “West reports record full-year earnings per share of $1. 78, up 68 per cent. ” – 6 Feb.., 2013. Web. 12 June, 2013