Final Report - Westjet
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Jan 9, 2024
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Final Report
Table of Contents
Executive Summary
Contextual Overview
Micro-Environment Macro-Environment SWOT Analysis Current Marketing Strategy & Recommendations
Product
Price
Place
Promotion
Conclusion
References
Contextual Overview
WestJet, the Canadian airline company, took flight on June 27, 1994, in Calgary, founded by
David Neely Men, Mark Hill, Tim Morgan, Clive Beato, and Donald Bell. These visionaries
drew inspiration from prior established low-cost airline models, (specifically Morris Air and
Southwest Airlines). Since its inaugural flight in 1996, WestJet has been dedicated to providing
secure, welcoming, and cost-effective air transportation globally (WestJet, 2023). Their first
flight on February 29, 1996, covered five western cities, extending as far as Winnipeg. In 2023,
WestJet boasts domestic travel across all 10 Canadian provinces and three territories, serving 24
countries and over 109 destinations internationally.
Micro-Environment
Exploring WestJet's micro-environment, supplier, and intermediary relationships with alternative
booking platforms like Flight Hub and Kayak contribute to overall reliability and service
efficiency. Diversifying suppliers, such as Flight Hub and Kayak, mitigates risks tied to
dependence on a single provider, ensuring unified services for customers.
In public relations, WestJet actively supports charitable causes, partnering with the Canadian
Cancer Association since 2013 (WestJet, 2016). Initiatives like WestJet Fares for Kids, launched
in 2007, currently support seven national charities, impacting children and youth positively. Over
the last 15 years, WestJet has donated more than 100,000 flights, fostering goodwill, building a
positive brand image, and aligning operations with societal expectations.
Focusing on customers, WestJet prioritizes personalized travel experiences, offering upgrades to
business or premium class with exclusive snacks, beverages, hot meals, and relaxation in an
exclusive cabin. Loyalty rewards programs help customers save money and unlock exclusive
discounts. Competing with other Canadian airlines, particularly Air Canada, as a company
whole, WestJet upholds a customer-centric approach and is active in community involvement,
correlating with WestJet's brand identity being caring at its core and being people-powered.
Macro-Environment
Investigating
WestJet's macro environment, the company actively engages in the community with
initiatives like WestJet's Care for Kids, displaying commitment beyond profit-making. Despite
attracting a high customer base with low airfares, challenges like economic downturns and
pandemics, such as COVID-19, and fuel price fluctuations remain potential hurdles.
In terms of technology, WestJet invests in innovative aircraft technology, exemplified by the
fuel-efficient CFM56-7B turbofan engines and the new modifications to the airlines 737-700
aircraft by the help and partnership with Aero Design lab for greater reduced emissions and
improved fuel efficiency (WestJet, 2022). The airline also explores onboard entertainment like
Netflix, movies, and music, enhancing the passenger experience (WestJet, 2022).
Demographically, WestJet caters to a diverse customer segment, spanning various travel needs
and age groups. Culturally, WestJet's core values align with North American culture,
emphasizing a high-quality service experience.
Legally, WestJet commits to compliance with evolving aviation laws and regulations, adjusting
procedures and policies accordingly (WestJet, 2022). Politically, adherence to Transport Canada's
guidelines for pre-board security screening ensures operational integrity and passenger safety.
In environmental matters, WestJet invests in fuel-efficient aircraft and environmentally conscious
procedures, addressing global environmental concerns.
SWOT Analysis
SWOT TABLE (WESTJET AIRLINES)
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
Investments in modern fuel-efficient aircrafts
dependence on North American market partnerships for global reach
intense competitions in the airline industry (especially Air Canada)
customer and quality service delivery limited global presence
expansion to new markets regulatory changes impacting aviation industry
WestJet rewards loyalty program vulnerability to economic fluctuations
demand growth for sustainable travel
environmental concerns affecting airline operations
commitment to community support
fee for checked luggage technology advancement for improved operations
excessive cost in fuel = difficulty to provide
services at low fares
WestJet stands as a strong and leading entity within the Canadian airline industry. Some notable
strengths contributing to its success include the company's unwavering dedication to customer
satisfaction and the delivery of top-notch service quality.
The establishment of WestJet Rewards, a loyalty program, further augments customer loyalty by
fostering a positive brand image (WestJet, 2022). This initiative enables customers to save
money while traveling and earn rewards, enhancing their overall experience. Another pivotal
strength lies in the company's investment in fuel-efficient aircraft, demonstrating a commitment
to environmental sustainability and cost-effective operations. WestJet is also actively involved in
the community, supporting charities, and encouraging employee volunteering for local
communities across Canada. Despite numerous strengths, the company does face weaknesses. WestJet's significant reliance on
the North American market exposes it to vulnerability, as economic fluctuations within this
region can impact its financial stability. Moreover, the imposition of checked luggage fees
represents another weakness, dissuading cost-conscious travelers and affecting overall
competitiveness. For instance, one of WestJet's competitors, Air Canada, allows for one free checked bag in their
comfort class (Economy plus) (Air Canada, 2023). Additionally, WestJet has limited global
presence, hampering its ability to explore diverse markets and mitigate risks associated with
regional economic challenges. Furthermore, WestJet encounters various threats, notably intense
competition, especially from rivals like Air Canada, which serves a larger number of
destinations. Changes in aviation industry regulations present challenges that demand adaptability and
compliance. Environmental concerns also pose a significant threat, as increased scrutiny on
airline operations may result in stringent regulations and operational adjustments. The inflated
cost of fuel further intensifies these threats, making it challenging for WestJet to maintain low
fares while upholding its standard quality services for customers.
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