West Jet Strategy 1. WestJet competes in the air travel market segment with a focus of providing low cost flights to the common traveler, such as friends and relatives. An order qualifier would be the timeliness of the flights. WestJet has achieved the best on-time arrival performance in its market segment which it is able to pass on to customer. As delays will often frustrate travellers, this can make WestJet that traveller’s top choice.
The asset turnover will increase when their profit margin increases, the high profit margin is because they are currently expanding . 2. To a certain extent, the high level of popularity was from their effective market analysis. In 2012 superstyles spent 20% of their profits on marketing. Compared to the industry average superstyles spends 50% more on marketing, however I think it is very useful as they are expanding and don’t have the brand image and reputation yet.
The company needs to improve their financial performance by controlling cost to increase their profit margin. Costco’s total asset turnover has stayed relatively the same from 1999 to 2008. The average total asset turnover in that time period was 3.40 compared to the industry average of 2.85. Compared to the industry Costco has a moderately high total asset turn over. This means that Costco is doing a very efficient job in using its assets in creating sales.
Outsourcing refers to sending jobs overseas because it is cheaper to produce the good there instead of in your home state. In countries which offer extremely low minimum wages, possibly as low as 10 cents an hour, companies which outsource can afford to sell their products at a much lower price than what American companies could produce the same good for. This causes many companies to outsource jobs, in order to drive down their prices and attract more customers. Outsourcing is a major problem for the United States, as it causes thousands of American jobs to be lost simply because the cost of American workers is thought to be too high. Even though Walmart offers low prices for their goods, they are harming the United States economy through the unintentional loss of thousands of American jobs.
I believe that Mel Green’s marketing experience will result in revenues far greater than the $20.000 used in the proforma profit and loss account. 3. Concentrating on the wholesale business will increase revenue without increasing labour and overhead costs significantly. 4. Both stores are located in prime locations and offer high visibility, closing any of the two stores will lead to a loss of the competitive advantage these prime locations affords the business.
AO2- Swot and PEST analysis for Easyjet In this piece of coursework I will be analysing the SWOT and PEST analysis for the easyjet airline. |Strengths |Weaknesses | | | | |EasyJet operate a fast and efficient service with an average |They do not offer free food service and passengers have to pay for | |turnaround time of 30 minutes or below. This enables them to maintain|food and drink onboard the aircraft. | |a reliable and hassle free service to their passengers. | | | |Domestic air travel is an extremely competitive industry with | |EasyJet offers an online promotion alert which is e-mailed to |EasyJet’s main competitors being Jet2, BMI Baby, Ryan Air plus a host| |existing customers and contact on the company’s database.
It is consistently ranked as one of the top Fortune 500 brands. Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures, and on-time flights. Many people recognize the reputation Southwest Airlines has in the airline industry and it appeals to many customers and potential fliers. The reputation and recognition of Southwest Airlines is enough to support the ad. The advertisement goes after the common sense of the reader because it is very simplistic.
The customers feel good. They spend more because they have jobs and sable income. More money is collected by the government from income taxes and VAT. The last, factor the prices tend to increase because of high demand so the inflation is rising. Recession- The recession is an opposite of boom stage.
For example, Wal-Mart, can afford to offer price discounts during a recession, since it’s in accordance with their brand promise. A low price strategy is easy to adopt, but extremely difficult to dismiss when the economy picks up again. For example, Dell a low price leader in the PC market, was well received by cash-strapped corporations and consumers during an earlier recession. But as soon as the economy recovered, there was demand for more sophisticated products, and Apple was there waiting for them. Apple then enjoyed a humungous growth, both in profits and their stock price, which gave it the cash to diversify into other areas, such as the iPhone.
customer satisfaction, improved on-time rating, lower fees, standardized pricing and, most importantly, safety. Chris Edwards states, “Any service that can be supported by consumer fees can be privatized. A big advantage of privatized airports, air traffic control, highways, and other activities is that private companies can freely tap debt and equity markets for capital expansion to meet rising demand. By contrast, modernization of government infrastructure is subject to the politics and uncertainties of government budgeting processes. As a consequence, government infrastructure is often old, congested, and poorly maintained” (Edwards, 2009).