Infestation analysis of the external environment

The paper offers an analysis of the Case Study to get Westjet Air carriers, Canada. The case is obtained from the work made by Peter Yannoupoulus (pg 376-380) Problem Statement The following problem statements are proposed: 1 . Westjet Air carriers total debts is higher relative to its shareholder collateral a evaluate that may necessitate external funding. The company requires a strategy to assure its self-sufficiency. 2 . Westjet has many rivals and has to think of strategies to assure it is still in the market and makes profits.

The major questions that supervision of Westjet have to deal with is whether to maintain the status quo quo of offering inexpensive and low fare, whether to enterprise more in the third party rental segment or perhaps whether to become involved in the Trans borders section. The managing has to determine the best strategy it will value to achieve its expansion program and decision must be produced urgently. INFESTATION Analysis with the External Environment Political/ Legal After the 9/11 attack operating in the small market segments has become uneconomical due to improved costs.

Legal measures by government translated to higher costs to airlines, which were used in consumers. nonprofit airport government bodies have also triggered the elevated prices that act as a disincentive to air vehicles. Most customers happen to be price hypersensitive and treatment must be delivered to maintain its competitiveness. Westjet incurred added costs by providing features to it is customers like leather chairs, snacks leg rooms and television. Economic It offers quality services, allows its employees and stocks and shares profits. This way it retains its competitiveness.

Having good relationships with employees creates good human relationships with customers. Employees will make decisions and solve customer problems without the unnecessary hold off of contracting the supervision. Employees are manufactured feel as if they are really part of the organization. By offering top quality services and on job teaching it increases its remarkably motivated workers skills. This employs qualified people who also have a right attitude. Employees are enthusiastic by the income sharing wherever they receive additional money via what the firm makes.

Through its employees share order plan, it encourages the employees to invest in the company’s stock. Pricing The fares happen to be 55% less than air Canada fares. It gives services at a low cost to be able to increase the traffic. It allures passengers who would prefer various other means of transportation as well as those without the traveling idea although attracted by prices. Westjet intends to expand it is scope to serve the central and eastern Canada. By early on 2004, it had been serving 24 Canadian towns. (P. 376) Environment/ Technical In elevating its productivity Westjet might be obliged to incur expense but the benefits are worth it.

For instance the installation of winglets that price $ 635, 000 every plane will result to bucks 112, 500 savings s. a every plane. (p. 379) Cultural and Ethnical Westjet air carriers provide passenger, cargo and third party charter services to Canada’s home market. That started its operations in 1996 with 3 aircrafts and 230 employees simply by 2003. It has expanded and today employs 3610 employees and 14 aircrafts. It has came into an agreement with Air transportation, the leading Canadian charter airline and that rent their airplanes during off-peak conditions like in winter time. It also did its repair and leased some of its simulators.

Competition Air Canada, the largest competition has more assets and a better command available in the market. It utilized over 90% of Canadian airline industry, US trans border and international marketplaces. It makes counter decisions to be at better reasons than Westjet. Other low fare competition include Cantet, HMY breathing passages, Zoom air carriers, Tango, and Jazz and Zip atmosphere. Decisions Option and Solutions Alternative -1 Tran edge expansion Westjet may decide to expand in Tran border operations. Venturing into this area necessitates increased price in increasing aircrafts.

Lots of competition from part airlines of stronger airline could warned its low fare technique. There is quite high competition inside the trans-boarder industry as it contains both the Canadian as well as the ALL OF US airlines. Changing the elderly aircrafts could also be important to pave way for efficient aircrafts to travel nonstop across metropolitan areas in Canada and across the region. Alternative -2 Offer low cost and low fare and increase Canada market Westjet can maintain its status quo. It might strengthen or perhaps empower its employees leads to increase their satisfaction that is even more projected to the customers.

Their small size will ensures low cost structure and fewer employees. With the successful routes causes it to be more efficient than large air carriers. It must as well ensure that it provides convenient activities. It can maximize or keep these earnings by increasing its scope. Westjet can advertise it is services substantially through it the promoting and new media department in its sales and marketing. Advertisements could be through publications, outdoors advertising, radio, tv set, and transit messaging and web ad. (P. 378).

It can also maximize offers to act as bonuses like random promotion for example, the prime ministers day exceptional. Westjet presents tickets much less reservation system through Internet bookings which have been very hassle-free and effective to customers. It also removed unnecessary costs that choose printing circulation and tracking of seats Alternative -3 Venture even more in charter segment. Westjet can opt to expand inside the third party sector or the rental services. It is appropriate since the unutilized aircrafts work extremely well during winter. It could team up with established rental flight businesses.

Most Favored Alternative The strategy that best be enough Westjet growth is to broaden its operation in Canada. Westjet has only exploited 10% of their potential market share and therefore recieve more potential to increase. (p. 375). It can improve the number of routes made and venture in areas which have not recently been exploited. Income and RETURN In 2001 Westjet got $ 478 million profits that rose to $ 680 mil in 2002. It can continue with this kind of trend whether it exploits the unexploited 90% of the potential. (P. 380)

References: Peter Yannoupoulus. West Aircraft Airlines Circumstance 4 pg 376-380

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