Westjet have to deal with is whether to maintain its status quo of offering low cost and low fare , whether to venture more in the third party charter segment or whether to be involved in the Trans bs segment . The management has to decide the best strategy it will use to achieve its expansion plan and decision must be made urgently PEST Analysis of the External Environment
Political / Legal
After the 9 /11 attack operating in the small markets has become uneconomical due to increased costs . Legal measures by the government translated to higher costs to airlines , which were transferred to consumers . Non-profit airport authorities have also led to the increased prices that act as a disincentive to air transportation . Most customers are price sensitive and care must be taken to maintain its competitiveness . Westjet incurred added costs by providing amenities to its customers like leather seats , snacks leg rooms and television Economic
It offers quality services , empowers its employees and shares profits This way it maintains its competitiveness . Having good relationships with employees creates good relationships with customers . Employees can make decisions and solve customer problems without the unnecessary delay of contracting the management . Employees are made to feel as if they are part of the company By offering quality services and on job training it improves its highly motivated employees skills . It employs qualified people who also have a right attitude . Employees are motivated by the profit sharing where they get additional money from what the company makes . Through its employees share purchase plan , it encourages its employees to invest in the company 's stock Pricing
Its fares are 55 lower than air Canada fares . It offers services at a low cost so as to increase the traffic flow . It attracts passengers who would prefer other means of transport as well as those without the traveling idea but attracted by the prices . Westjet...