Air Canada's Strategic Issues In The Case Of Air Canada

1859 Words8 Pages
The Air Canada case contains a problem in the structure of the company regarding how they are sourcing in their supply chain, managing the risk, and growing the company while maintaining their core competencies. Based off the overall information in the reading, Air Canada seems to be making the correct steps in the success of their business. If you look at page 20 of the reading, Air Canada holds a good majority in the domestic, international, and even transborder market shares. The biggest issue with Air Canada is their need to always innovate to be the best airline that they can be and connect Canada to the world. Some of the major factors that play a part in Air Canada’s problem is that they are always in competition with any company that provides transportation whether it be an airplane or transportation company. They strive to uphold their status as the leading innovator in the field through the use of Information Technology systems. Another factor that plays a part of Air Canada’s problem is that 95% of their IT services are now being outsourced while only 5% of the services remain in-house. This could result in major issues which will be discussed later in the analysis. Another problem that arises is that the contracts that are being made with companies that do not fully benefit Air Canada. They require them to share information with their competitors which hurts them in the long run and challenges their core competencies. The key to sustaining the competitive

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