...| | |WestJet: Environmental and Porter Analyses | |BUSM 4200 | Table of Contents Executive Summary 2 Mission Statement and Vision 4 1. 4 1.0 Political/Legal 4 2.0 Economic 4 3.0 Socio-cultural 5 4.0 Technological 5 5.0 Demographic 5 5.1 Geographical 6 5.2 Income Distribution 6 6.0 Global 7 7.0 Porter’s Five Forces 8 7.1 Bargaining Power of Suppliers 8 7.2 Bargaining Power of Buyers 8 7.3 Threat of Substitute Products 9 7.4 Threat of new entrants 9 7.5 Intensity of Rivalry among Competitors 9 8.0 Core Competencies 10 9.0 Porter’s Value Chain 11 9.1 Primary Activities 11 9.2 Supporting Activities 12 Executive Summary This report identifies and analyzes key information and issues about 'WestJet Airlines Ltd.' for business purposes. It examines the company's general and industry environments, its core competencies, and its value creation activities. Most importantly, the increase in demand for lower-priced air carriers coupled with its decentralized infrastructure and strong integrated strategy, has helped make WestJet the second largest Canadian...
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...| December 11, 2009 | | JRShaw School of Business JR340 Business and it’s EnvironmentDoug KennedyBy:Andrew Hamilton, section 51 | [West Jet: An analysis of Non-Market Strategies] | | Contents History 3 Nonmarket Environment 3 Public perception 4 Private politics 5 Public politics 6 Court or regulatory scrutiny 7 Integrated Strategy 8 Leaders’ Responsibility 9 Conclusion 10 Bibliography 12 History West Jet was founded in 1996 by 5 entrepreneurs who believed they could succeed as a low-cost carrier in the western Canadian market. With a fleet of only three Boeing 737 aircraft and just over two-hundred employees, West Jet served Calgary, Edmonton, Kelowna, Vancouver and Winnipeg. West Jet went public in 1999, allowing for greater access to capital and potential for growth. In 2000 market share was expanded to eastern Canada. By 2004 West Jet began to access the U.S. and in 2006 started international flights. West Jet continues to grow into new markets and is now in position to become a major competitor among international carriers. The low cost “no-frills” service and corporate culture have been the praise of West Jet success. To use market share as a measure, West Jet began with none and now has approximately 33% Canadian market share with plans for this to increase. Nonmarket Environment West Jet has developed a very strong market position in a short period of time. They certainly have a strong marketing strategy and low-cost structure...
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...Kingfisher Airlines Limited Case Kingfisher Airlines Limited is an airline based in Bangalore, India. It is a major Indian airline operating 218 flights a day and has an extensive network to 37 destinations, with plans for regional and long-haul international services. Its main bases are Bangalore International Airport, Bangalore, Chhatrapati Shivaji International Airport, Mumbai and Indira Gandhi International Airport, Delhi. Kingfisher Airlines, through one of its holding companies United Breweries Group, has acquired 26% stake in the budget airline Air Deccan and has option to buy further of 20% stake from the secondary market. Kingfisher is one of only 6 airlines in the world to have a 5 star rating from Skytrax, along with Asiana Airlines, Malaysia Airlines, Qatar Airways, Singapore Airlines and Cathay Pacific Airways. 3. Situational Analysis i. Steeple analysis Sociological Today’s air traveler is like any other consumer looking for value for money. Disposable incomes are on the rise and the consumer is willing to spend more for quality and brands. Air travel is no more about transporting passengers. It is more about the flying experience. People like travelling in planes. ‘Kingfisher airlines’ has a very good social image. Being a five star airlines, customers want to travel with Kingfisher. Also, the brand charges a premium price that is why only upper Socio Economic Class people prefer Kingfisher airlines. The lifestyle of the people is improving....
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...CONSUMER BEHAVIOUR Service Quality Perceptions of Domestic Airline Consumers in India: An Empirical Study SUBMIITED TO: MEENAKSHI HANDA BY: SAHIL MALHOTRA (13) RAHUL KALRA (39) Abstract Pricing and service quality are the key variables that decide the brand equity of each player in the airline industry. Existing literature suggests that measurement and management of service quality is the key for survival of airline companies. This research paper examines the service quality delivered by four major airlines in India on the backdrop of stiff competition in the airline service sector. The process of traveling on a domestic airline was divided into pre-flight, in- flight and post-flight experiences. A survey was conducted to find out the perceived service quality of frequent fliers on each of the four airlines across a series of service performance variables. The airline brands were positioned in a perceptual space, where the perceived service attributes were also mapped. Clear differences emerged among the airlines, with two of them perceived as being similar to each other, and the other two differing in many respects. INTRODUCTION India at present has twelve competing airlines in the domestic market as against a single government owned airline in 1991. According to McKinsey Quarterly (2005), the Indian aircraft market is the world’s second largest commercial aircraft market. On-time performance and service levels have risen dramatically and fares have...
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...to its non-renewable characteristics and the global rising demand, oil has increased in its value, which results in many oil price crises recently. For all those industries using large amount of oil in operation, the risk of rising oil price is an extensive problem. The most efficient method to hedge against this risk is by using oil futures contracts. Because of its effectiveness, oil futures contracts are playing a key role in risk management for a number of industries including transportation and manufacturing. This report provides principal knowledge about oil futures and its role in hedging the risk of oil price volatility. A case study of US airline industry with most updated data obtained from Bloomberg system is also discussed, which suggests the effectiveness of oil futures in risk management for most airlines companies. However, in some case, the inflexible use of oil futures may create a burden in financial costs while not producing effectiveness in risk hedging. 2 TABLE OF CONTENTS LIST OF FIGURES 3 I. INTRODUCTION In the world of industrialisation, the role of oil is becoming more and more crucial especially for transportation and manufacturing industries. Those industries consume a large amount of oil, which constitutes the major part of their operational costs. However, having gone through the three oil crises in early and late 1907s and recently in mid 2000s, those...
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...peoples lives was September 11, at 8:45 am in New York City. In the blink of an eye, one of Americas most loved cities was attacked and reawakened to the real world. Conspiracy theorists have tried to debunk the theories and misconceptions about the horrific morning of 9/11. Fortunately, after 7 years of analysis and research we figured out that the conspiracy is true, science has undoubtedly debunked this mystery and everything finally makes sense. On September 11, at 8:45 am on a clear Tuesday morning, an American airliner Boeing 767 loaded with 20,000 gallons of jet fuel crashed into the north tower of the World Trade Center in New York City near the 80th floor. According to the National Institute of Standards and Technology the North tower was completely obliterated by a single commercial Boeing airliner jet. While studies show that the height of the impacts on the North tower to cause it to collapse is a complete fallacy. The truth is that the top 20 floors could not have possibly disemboweled the remaining sturdy 90 floors. Even though the Boeing was transporting 20,000 gallons of fuel, which certainly caused plenty of damage and fire to the initial impact on the 80th floor. Jet fuel burns at 1,800 degrees Fahrenheit while steel melting point is 2,750 degrees Fahrenheit. The top 20 floors of the WTC acted as a hammer in the sense that the building collapsed as the hammer from the 80th down smashing at the bottom 90 floors as the nail. As it crashes downward onto the bottom...
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...com - Free Term Papers, Essays and Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Home Page » Business and Management Case of Gm (Non-Market Environment) In: Business and Management Case of Gm (Non-Market Environment) Question 1: Identify and explain the 4l’s based on the case. a. Issues The dispute over the safety of the PICKUP TRUCKS, vehicle safety and defective design Firstly, the root cause is that the GM company has a unreasonable design of their gas tank on the collisions GM C/K pickups, the report shows that this pickups’ gas tank was too close with the bumper, it only 25 centimeters long. This is dangerous because that will cause explosions if there is any strike. A safety design should be place the gas tank on the top of axle or add on a shield between the gas tank and bumper. Further, the report also shows that the gas tank design was used for trucks manufactured between 1979 and 1987, and the fact is GM knows about their design problem but take no measure to fix or recall their cars because that will cause more cost. At the Moseley case happens, there are at least 130 other lawsuits involving the design of the gas tank GM need to faced. So the major issue of this case in this point is that whether the gas tank design and placement were defective and because that explosion case after their pickup was struck on the side by another vehicle. And those assumptions were proved by the GM engineer who is testified that GM company hidden...
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...Consumer Behavior Consumer Behavior: Contrast Jet Blue vs. Southwest Airlines Trident University MKT501 CS1 Identify key external factors that affect the passenger airline industry and explain how that impact occurs There are several external factors that affect the passenger airline industry. Some of the factors that affect the industry are economic crisis, instability in aviation fuel price, and environmental factors. I will elaborate more in detail in the following paragraphs on these factors. The first area I want to talk about is our countries current Economic Crisis, and in my opinion drives all the other factors that affect airline industry’s the most. The current economic situation is not good and therefore will have an effect on what a customer will or will not do. Air travel is very expensive as it is, in my opinion, so a sluggish economy will add more pressure on an individual or family thinking of flying anywhere. The second area that affects the airline industry is the cost of aviation fuel. If fuel prices are high, the airline will have to charge more for tickets. As I mentioned earlier, higher ticket prices is not what the public wants in our current economy. The airline industry is a business and in order to make money and continue to provide the service, the company has a breakeven price, approximately 66% of their operating cost (Airline Economics Break Even Load Factors Paragraph). If the company doesn’t...
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...Mitigation potential of climate-optimal trajectory planning in the North Atlantic Flight corridor Sigrun Matthes1 , Volker Grewe2, Christine Frömming2, Sabine Brinkop2, DLR German Aerospace Center, 82334 Oberpfaffenhofen, Germany Thierry Champougny3 EUROCONTROL, 1130 Brussels, Belgium Amund O. Sovde4 CICERO, 0349 Oslo, Norway and Emma Irvine5 University of Reading, UK Mitigation of aviation climate impact is one strategic goal spelled out for a durable development of air traffic. Operational measures to identify climate-optimal aircraft trajectories by air traffic management (ATM) are one option to reduce climate impact. We present results from a comprehensive approach for climate-optimized flight planning applied for a case study the North Atlantic Flight corridor (NAFC) performed within the collaborative project REACT4C (Reducing Emissions from Aviation by Changing Trajectories for the benefit of Climate) funded under the European FP7 programme. Ultimate goal was to identify maximum mitigation gain (in climate impact) for a specific investment, hence minimal marginal mitigation costs. For this purpose consecutively those flights trajectories options are selected which offer the highest mitigation potential taking into account five archetypical weather patterns in NAFC, and traffic samples in eastbound and westbound both direction. Using a concept of 4-dimensional climate cost functions integrated into a simulation system for operational planning (SAAM)...
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... Case Analysis #1 JetBlue Introduction JetBlue Airways was founded in 1998 by former Southwest Airlines employee, David Neeleman, The company looks to utilize similar cost savings techniques as Southwest and has even improved, expanded and added some. In addition, JetBlue has attempted to offer differentiation in service to improve the customer experience. Unlike most pointtopoint airlines, JetBlue decided to add a second airplane model in order to expand into the regional flights. A deal was struck to purchase up to 200 jets from Embraer through 2016. The growth the company forecasted was soon realized to not be in the best interests of the future of JetBlue. In 2006 the company executives discovered that the the time it would take in order to just achieve breakeven cash flows with the growth model at that time was much longer than originally anticipated. This, along with dramatically rising fuel costs, meant a new plan would have to be implemented in order to slow growth. In 2007, newly appointed CEO David Barger had to design a way to reduce growth even further. What needed to be decided though was which jets to cut, and how much of each. the A320 was the model that built JetBlue and the aircraft that had proven its success in the past. The E190 provided a new unique opportunity and a niche market that JetBlue may be able to take great advantage of. External Analysis ...
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...Case study Main problem Ice storm grounded air bus. Affected 130000 passengers, caused the cancellation of 1100 flights over a six day period, and cost Jetblue an estimated 30 million dollars. The ice storm was a problem in Jetblue’s external environment and as such was out of the company’s control. Stock prices fell from 12.99 to 3.97 from feb 13 2007 to may 30 2008 Rising jet fuel prices – another factor in the firm’s external environment. New competititors – the firm’s industry environment was seeing the rise of many competitors mainly Southwest airlines. Jetblue’s reaction to problem Passenger’s bill of rights- this can be seena as a reactive strategy to correct problem that occurred during ice storm. Assembly of new senior management team Founding of jetblue Neeleman’s vision: a company that would combine the low fares of a discount airline carrier with the comforts of a small cozy den in people’s homes. Introduction of 24 channel live television via satellite for free to make air travel entertaining. Individual monitors installed in all seats. Introduction of electronic tickets and the allowing of reservation agents to work from home. Money was saved on paper tickets, on postage for mailing of tickets and rental of office space. Competitive advantage – Jetblue was able to obtain a competitive advantage by striving to be the industry’s low cost provider. Feb 11 2000, launching of first flight between buffalo and nyc. This round trip at jetblue cost $98...
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...2010 CASE STUDY ON SOUTHWEST AIRLINE CHUOP Theot Therith TABLE OF CONTENT Table of Content 1. Case Abstract .......................................................................................................................................................... 1 2. Propose a Vision Statement............................................................................................................................ 2 3. The company mission statement and mission statement proposed .................................................. 2 4. List the corresponding Mission Statement components ......................................................................... 2 5. Perform an External Audit.............................................................................................................................. 3 6. Competitive Profile Matrix (CPM) ............................................................................................................... 5 7. The EFE Matrix .................................................................................................................................................... 5 8. Perform an Internal Audit ............................................................................................................................... 7 9. The IFE Matrix ..................................................................................................................................................... 8 10. TOWS Analysis ......
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...comparison of the circumstances that led to the World War 1 and the position that the world is finding itself in 2015. The position in this case is that active military and political groupings on a tiny diplomatic issue historically has led to full scale wars that have led to millions dead. Cohen uses a dummy approach to explain to a reader who has not read into the history of the wars and the American factor in the situation. In a short dialogue he touches on all factors that lead to geopolitical confrontations and patterns of international relations that create a global conflict. This article is important because it touches on the delicate matter of war, survival of empires and the peace thereafter. This section gives a summary of the article. According to this dialogue, the genesis of the past world wars comes about when an empire is threatened because of long standing quarrels, tensions and dissatisfactions among people. Small triggers could lead to bigger than necessary reactions and thus, political and military actions. Subsequently, allies and foes join sides and thus create an international relations vacuum which means that war is inevitable. Cohen compares the Austro-Hungarian situation to the Syria of 2015 in terms of political allegiance and strong views on its survival by the two global super powers. An angry Russia and a calculating west may put the world in jeopardy. However, as a person with a keen eye on political history and phenomenon, the projection of the present...
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...Table of Contents Executive Summary 2 1. Introduction 3 1.1 Brief Description of the Report 3 1.2 Current Situation 3 1.3 Company Background 4 1.3.1 AirAsia 4 1.3.2 Vision and Mission 4 2. Strategy and the Industry 4 2.1 Analysis and Evaluation of industry Strategy 4 2.2 Global Forces that Impact the Industry 5 2.3 Importance of an Effective Strategy 5 3. Environmental Analysis and the Strategy 6 3.1 Corporate Strategy 6 3.1.1 Evaluation of Current Strategies 7 3.2 Analysis of the Internal Environment 8 3.3 Analysis of the Resources and Capabilities 9 3.4 Analysis of the External Environment 10 3.5 Proposed Change Strategy 11 4. The Relevance of Strategy Models/Frameworks 11 4.1 Discussion and Application of the Models 11...
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...Abstract India, home to one-sixth of the world’s population, is quickly becoming one of the world’s economic engines. Its bureaucratic and outdated regulatory policies have been reformed resulting in a three-fold increase in the number of scheduled airlines and a five-fold increase in the number of aircraft operated. The largest and most popular airline in Mumbai India is Jet Airways started in 1993. Naresh Goyal (both founder and owner) still owns eighty percent of the company, and oversees all aspects of the business. This paper reviews one of the airlines, jet airways, strategic evaluation process to select the next corrective action for the airlines and also the impact on overall aviation industry. How to do a strategic evaluation? Strategic Evaluation is the final phase of Strategic management. Strategy Evaluation is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results. The managers can also assess the appropriateness of the current strategy in today’s dynamic world with socio-economic, political and technological innovations. The process of Strategy Evaluation consists of following steps- 1. Fixing benchmark of performance - While fixing the benchmark, strategists encounter questions such as - what benchmarks to set, how to set them and how to express them. In order to determine the benchmark performance to be set, it is essential to discover the special requirements...
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