Westjet is a Canadian airline that started in the late 1990s as a low-cost carrier but has started adopting a hybrid model of operation. For instance, it has been doing a brand extension with Swoop which is also a Canadian low-cost carrier to expand its services to other international markets. The paper shall assess the viability of its strategies for expanding its market by focusing on its SWOT analysis and its segmentation, targeting, and position.
The SWOT analysis will focus on Westjet's internal and external factors that make it competitive or vulnerable in the industry.
Strength Weakness Opportunity Threats
The airlines charge the least airfare in Canada.
It has a strong brand image in Canada for offering competitive services to customers.
It utilizes labor-force from non-unionized people which limits the risk for dispute such as employees strikes.
The airline has been awarded as the best Canadian airline of the year which has raised its competitive advantage.
1. WestJet has few trans-continental flights.
2. The low-cost carrier status limits its capacity to provide snacks and other entertainment services which is a concern for the customers.
3. WestJet does not have first-class seating arrangement which leads to loss of high-end clients.
4. The rising and narrowing cost gap with the Air Canada.
WestJet has introduced a competitive dynamic in the long-haul carrier.
It leverages the user-friendly planning packages known as WestJet vacation.
The ancillary revenue of the airlines has been growing. The fluctuating global economy reduces the demand for its services.
Its global expansion places it on the radar of other experienced and established airlines.
The consistent rise in the cost of fuel the provision of low-cost flights will become a challenge.
WestJet airline target the domestic family travelers who used to travel I family cars to visit family and friends. It will target the international and business travelers, by introducing a premium cabin which will serve the hot foods. Most of these clients are millennials, looking for the low-cost flight which is fun at the same time. Those with moderate and high incomes, the professional, those in town and suburban regions among other will the target of the services. The airline wants to stop the Canadian people from crossing the border to get cheap flights. Therefore the stagey has been to cut the costs in various areas such outsourcing jobs, obtaining the minimal airport charges, and making strictly online sales.
WestJet discount airline is a strategy in collaboration with SWOOP which is another low-cost airline, for WestJet to capture expansive markets for its low-cost flights. The discount airline has introduced a cabin for hot foods to improve the experience while onboard. However, this is a concern since drinks and other things have not been offered. It targets business and international passengers, which means Western need to specialize in the comfort of the clients. These services are new and hence, are bound to face challenges such new rules at other international destination that may limit the profitability of the airline. For instance, since West limits its expenditure on the airports, in some international airports it may be forced to incur more charges for other services which may affect the profits. Being rigid about what they serve without considering the client's will affects the performance of the business.
If you are the original author of this essay and no longer wish to have it published on the thesishelpers.org website, please click below to request its removal:
- Management Essay Sample: Change Proposal to the Southwest Airline Company
- Haier Case Study: Making Quality Products and Reliable Services
- Retailing: Store Management and Customer Loyalty
- Managing Innovation at Nypro - Management Case Study
- Sport Management - Essay Sample
- Essay on Films About Labour Studies
- Article Analysis Essay on Lean Manufacturing