West Jet Case Study

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WestJet Case Analysis | February 6
2012
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By: Abdu Dipersico|

Current Marketing Situation
Strengths
* Ranked as the second best airline in Canada
* Ranked top employer and has the most admired corporate culture in Canada * Known for having customer-friendly culture and enthusiastic employees * Expanding year by year and adding more traveling destinations which include the United States and popular sun-destinations * Added more advanced, next generation, aircrafts

* Set goals for 2016 to be 1 out of 5 most successful airlines in the world * Offer great customer service experience at great value, which will essentially attract more customers and help build on their goals of 2016 * Uses 1 aircraft type which is the Boeing 737; This reduces maintenance and training costs * Leveraged technology to reduce operating costs (which is 30% below its main competitors) which, sequentially, leads to offer customers low fares and convenient point-to-point air travel * Differentiating from competition by offering low-cost fares, comfort features, and good customer service which will all lead to a positive flying experience * 85% of WestJet employees own shares in WestJet, including front line employees who are authorized to make customer service decisions, which are essentially positive for the customer and the company. * Always looking to improve by monitoring and rating their customer service telephone representatives * Offers reward system, which is crucial to keeping loyal customers and ensures that their employees provide an excellent level of customer service * Toronto Pearson Airport serves as a main connection point in eastern Canada * Consistently growing business

* Partnered with RBC and MasterCard for a reward program (Anonymous, WestJet reward programs take flight with launch of new WestJet RBC MasterCard and Frequent Guest Program, 2010) * Expanded network by adding 11 US and International destinations (Anonymous, WestJet adds 11 new U.S. and international destinations, 2009) * Launched subsidiary that offers customers inexpensive, stable and easy-to-book travel packages to all US and Canadian destinations (WestJet Announces the Launch of WestJet Vacations Inc., 2006) Weaknesses

* Not enough destinations (but expanding)
* WestJet do not offer business class seating which can be a factor for those customers who are looking for comfort and service * Inability to fly long distances, which is leaving WestJet behind its competition as far as overseas travel, goes. * Lack of food on WestJet flights is not enough for hungry passengers. (Brousseau, 2005) Opportunities

* The Canadian airline industry and sun-destination markets are worth over $10 billion. Therefore WestJet has potential in such a huge market (competitive forces) * There has been deregulation in the airline industry in Canada which gives opportunity for WestJet to expand. (regulatory forces) * Increasing number of new markets served, including the United States, Mexico, and the Caribbean (competitive forces) * Increasing passenger load on existing flights will help WestJet grow (demographic forces) * WestJet should expand their destinations around the world (competitive forces) * Invest in bigger size airplanes such as the airbus A380 which will allow room for more passengers, and has advanced technology (technological forces) (Author, 2005) * Expand by supplying sports teams with transportation (demographic forces) * WestJet should use Facebook and other social media to promote and possibly expand (technological forces) (Gilmour, 2009) * Provide lounges in expanding locations in order to attract customers (Competitive forces) (Schmidt, 2006) Threats

* WestJet faces intense competition which includes Airlines such as Air Canada, Jazz, Can Jet, Harmony Airways, American Airlines, and Northwest Airlines. * The airline industry is sensitive to...
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