Westjet Analysis

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

“Customer care” is what WestJet Airlines says in their ads. WestJet entire corporate culture has been built around caring for their customers, by providing a great

Air Canada is Canada 's largest full-service airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. trans-border market and in the international market to and from Canada. In 2010, Air Canada improved its reputation as one of the world’s leading international air carriers. Significant progress was made on executing and delivering on its four key priorities and this, coupled with improving economic conditions, allowed Air Canada to record operating income of $407 million in 2010, a $677 million improvement from 2009. Air Canada’s financial strategy is to continue to improve both the level and sustainability of its

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

• 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.

As a company, WestJet does not show a lot of weaknesses. However,the lack of international and Trans-Continental flights in the world of rapidly rising economies, international business and marketscould be count as a weakness. Customers may not be provided with the international destination they are looking for and could be turned to competing airlines. When higher-class travellers are looking to fly with some added comfort and special service, WestJet does not provide any sort of first class seating which can be a factor of lost business. However, December 2012 WestJet launched“premium economy” class flights program, which is designed to satisfy particular customer’s demands with extra legroom and services. Travelers have also dissatisfied with the fact of lack ofseats for larger passengers, becauseWestJet airplane’s seats aren’t big enough. Moreover, some passengers do not agree with the complimentary snacks only being served on flights two or more hours in length. In addition, Due to small crafts WestJet may become a victim of stereotype of low-cost, low-fare, and short-haul scheduled air carrier only.

Air Canada arranges a proactive strategic procurement plan to obtain different goods and services that are vital and fundamental for company growth. These strategies are based on analysis of their historical spending and on educated forecasting of requirements and opportunities. Air Canada is able to create and improve important relationships with key strategical suppliers due to their pronounced buying volume allowing them to acquire greater leverage.

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

Over the years Air Canada’s business strategy has changed and has been reconstructed a number of times. Air Canada’s mission has always remained the same, “connecting Canada and world” (Air Canada, 2016), but their visions and goals, have transformed.

➢ 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.

Westjet Airlines has achieved considerable success in the past few years, winning estimable rewards related to its service, gaining loyal customers and, of course, increasing market shares. It devotes to a “high-value, low-fare airline” which provides humanized services to customers. Another pride of Westjet is its IT, which designs all systems in-house and is operated based on the business demands.

The major strength of this assessment is that Cheryl was able to identify the issues that are key for WestJet to maximize and align IT with the business strategy as well as to add value to the company. Furthermore, Cheryl has started to act and take wise decisions without letting herself to feel overwhelm by the situation or by other person’s decision so she can have a clear picture of the business as well as the impact of its actions. A clear example of this situation was her decision to stop the PMO recommended by IBM. Also, she has focus on managing and improving current IT processes performances, adding tangible value to the organization Additionally, the actions proposed by Cheryl have the goal to update and upgrade IT according to the challenges of the industry in order to take WestJet into a higher level, moving people out of their comfort zone so they can increase their contribution to the company’s strategy. Besides, she found out that the IT group has excellent technical