Swot Analysis Of Westjet

r market by entering into strategic code-sharing agreements with international carriers, such as Cathay Pacific , and American Airlines

This report was made up for the purposes for pursuing our client and make him understand why he should invest in our company. This report will contain a swat analysis, strengths and weakness, vision statement, mission statement. These are going to a sure that we has a company aren’t only advertising our strengths but we will also show our weakness and things that need to be improved. The history of WestJet and the current points will also be shown, from when WestJet was founded and too, what’s WestJet’s main focus now will be shown in this analysis for our client. Another thing west jet wants to represent is all of the financial resources and the finical information for our client and of course a company overview will be provided has well.

WestJet Airline was founded in 1996 by Clive Beddoe and a team WestJet airlines were started with the philosophy that just because you pay less doesn’t mean you should get less.

Air Canada has been in the business of air transport for an extended period of time. Due to the experience and the exposure of the carrier in the field, it has made a commendable progress through many strategies as well as customer proximity. One of the approaches taken by the airline involves the identification as well as an implementation of cost reduction initiatives in a bid to increase revenue from its operations (Air Canada, 2016). It is also attempting to connect with the existing carriers across the world to connect the current customers to the international world. This approach has been adopted to increase its competitive advantage over other existing airlines.

Westjet came into the air travel business in 1996, offering fares up to 50% cheaper than there competition. They strived for an excellent relationship between the employee and the employer by creating an ecstatic, friendly work environment. Westjet is one of the most successful airlines as it did start out with the most start up capital any airline has ever experienced, as well as keeping their debt to a minimum. With such commercial success, Westjet was questioned with their actions towards Air Canada as one of the founders employed a travel agent to find out certain information about Air Canada which gave them a competitive advantage so they knew exactly what price would be a noticeable difference, which would attract

Two years before Smith arrived, WestJet decided to move towards Sabre reservation system which is a computer-based reservation system widely used by airlines and travel agencies throughout the world. The cutover to Sabre in October 2009 was a difficult transition into the world of shared airlines.

• WestJet views its employees as its most valuable asset. Therefore, it aims to ensure that employees’ work experience is fun, challenging and rewarding. Encourages employees to interact positively with customers to try to earn repeat customers.

WestJet’s executive compensation program is administered by the People and Compensation Committee on behalf of the Board. Its executive pay practices are designed to be prudent and well-aligned with our culture and

WestJet is a Canadian low-cost carrier, which was founded in 1996 and headquartered in Calgary, Alberta. WestJet is Canada’s second largest airline with high per cent of the domestic market. It provides scheduled and charter air service to 86 destinations in Canada, the United States, Mexico, the Caribbean and Central America. WestJet operates an average of 425 flights and carrying over 45,000 passengers per day. In 2012, WestJet carried 17,453,352 passengers, making it the ninth-largest airline in North America by passengers carried.One of WestJet’s main values is to be positive, passionate and entertaining in everything they do which make them different from any different airlines.

WestJet develop their IT operation early and force them get the lead in the aviation businesses. However, as the global economic and the change of people’s demand, the strategic plan of WestJet need to be change to follow the change of the world. Compare with other aviation business, the IT structure of WestJet is small and keeps running on their pervious operation before Smith join into the organization. There are some risks coming out if WestJet continue these IT operations.

For instance, Canada's federal government has delegated the responsibility for airports to local authorities. As a result, many Canadian airports have transformed into brighter, cleaner, and more modern facilities that have become more expensive to operate 3. Canada’s airports have spent more than $9.5 billion on improvements since 19922. According to the CEO of Transat A.T. Inc, “it costs three times as much for an airline to land in Pearson Airport in Toronto as at Charles-de-Gaulle in Paris” 2. Such high landing fees have made Pearson and other major Canadian airports less desirable landing destinations; increasing costs for airlines, and as a result, often increasing prices for consumers. Pearson Airport is West Jet’s “second-largest hub and main connection point in Eastern Canada” and almost half of its destinations are to Canadian airports2, Such high costs of landing in major Canadian cities require that WestJet finds more ways to cut costs and remain the cost leader in its industry.

Strategic Planning The strategic plan of WestJet provides a multifaceted approach to boost profits & revenues and company growth. The company intends to focus on people and culture including a positive corporate culture to facilitate growth, development, and commitment to the employees. Additionally, along with codeshare with which different airlines can share same flight, the company intends to restructure IT organization by aligning the corporate goals, IT planning and effective budgeting, and aggressive approach to the operational issues and support. The major changes to the organization’s IT structure and other areas as discussed will enhance the growth of the organization and to overcome the operational issues.

WestJet is also facing a strategic problem, the longer term impact that growth is having on WestJet’s culture. WestJet’s success and competitive advantage have been a direct result

This was evident with the purchase of Canadian Airlines, in 1999 (The National, 2003). With the purchase of this airline, Air Canada also inherited their estimated eight billion dollar debt (The National, 2003). Also inherited from the merger, were underappreciated employees and under trained employees who lacked morale (The National, 2003). In 2003, Air Canada filed for bankruptcy (The National, 2003), this was due to the large financial deficit, the economy and the underappreciated/paid employees. Although, this was a difficult time for the airline, this truly marked the change in how the airline is structured. In 2005, it marked the true return of Air Canada, they reached record breaking revenues and far exceeded anyone’s expectation, including their own. Currently Air Canada, is the largest Canadian Airline, which has a lot to do with their change in business strategy.

➢ Unique Corporate Culture: The main competitive advantage that WestJet had was their unique culture. Even the executives and pilots help the customer whenever necessary; encourage employees to share suggestions for improvement. They maintained the policy of Care for People.