Westjet

Paper Summary:

This paper examines how, while many previously successful airlines are challenged with labour issues, unsustainable cost structures and complex pricing structures, WestJet succeeds by filling the gaps that the industry has left open through operational and strategic deficiencies. WestJet is perceived as an "engine of the significant evolution in the airline industry". It looks at how in 2003, WestJet was named Canada's second most respected company, ranking first in high quality product and customer service and second in HR management and top of mind categories. It also examines how standardized flights, low prices, humorous promotions and web-based ticketing are the most visible components of WestJet's marketing strategy and how the underlying key success factor stems from the organization's low-cost strategic thrust and the eight unique business strategy components that support it. This paper details an analysis of the airline industry, the components that form WestJet's competitive advantage, the future of WestJet and the strategic recommendations to sustain the organization's growth. Included is Porter's Five Forces Model, a competitive analysis of the airline industry and relevant article studies.

Outline
1.0 Industry Analysis: General Overview
2.0 Competitive Environment: Facing Industry Challenges
3.0 WestJet's Marketing Strategy: Achieving a Unique Position
4.0 Low-Cost: WestJet's Strategic Thrust
4.1 "No Frills" Product/Service
4.2 Single Aircraft Type
4.3 High Aircraft Utilization
4.4 Simplified Route Structure
4.5 Ticket-less Distribution
4.6 Intelligent Technological Systems
4.7 Humorous Promotional Tactics
4.8 Company Culture: Tying it all Together
5.0 The Future of WestJet: More Destinations, More Growth
6.0 Strategic Recommendations: Customers, Competitors and Growth
6.1 Customers
6.2 Competitors
6.3 Growth
Exhibit 1 - Porter's Five Forces Model Airline Industry
Exhibit 2 - Competitor Analysis
Exhibit 3 - Strategy ComponentsExhibit 4: Relevant Article Studies

From the Paper:

"In 1987 the government deregulated the Canadian airline industry, allowing airlines to establish fares and conditions without any intervention and dramatically changing the industry dynamics. It is with this change that the "low-cost" business model fully came to life. Though the subsequent merger of Air Canada (AC) with Canadian Airlines dominated the market for a short time (with AC gaining 80% control over the market), the airlines control over the Canadian skies has not lasted long. With the costs of running a traditional airline escalating, a new strategic thrust has been adopted by both current and new carriers in the market who are now taking advantage of the increased demand for a low-cost no-frills product. Though WestJet is currently dominating the no-frills Canadian market, with a 55% market share for scheduled domestic flights, they have inspired others to adopt the "low-cost" business model."

More papers on Westjet:

• Case Study # 71922 : "Case Study: WestJet"
• Case Study # 120703 : "WestJet Management Report"
• Essay # 90809 : "Westjet and Corporate Espionage"
• Analytical Essay # 58957 : "Air Canada vs. WestJet"

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