WestJet’s competitive priority relates to cost, quality and delivery. Cost – WestJet has been able to reduce its operating costs through standardization. By purchasing only one type of plane WestJet is able lower both maintenance and training costs, resulting in higher profits. These savings and profits allows WestJet to provide lower cost airfares to its customers, thereby having a competitive advantage over its competitors. Quality – WestJet’s culture emphasizes a fun and friendly atmosphere for all travellers and empowers employees with bottom-up management.
The remodeling of the airline has created a more pleasant atmosphere for the customers. They have specifically targeted business travelers. Southwest’s policy allowing customers to change flights without penalty appealed to customers. But what really made Southwest stand out to both customers were its frequent flights serving a ton of cities at convenient times and low prices. Though
Mature industry life cycle. The Bargaining Power of Buyers: Medium to High - Internet gives the power to the customers to search for the low fares. - Leisure travelers who are not sensitive with the price and most of them are loyalty to the particular industry that offer the best service and offer the best flying experience. - There are many airlines in the market that offers the same flying experience in the low-price. Bargaining Power of Suppliers: High - Boeing and Airbus are the only two suppliers of
What advantages would such an approach give Boeing? a. Value Propositions Due to the mature market, operational excellences have been one of the choices for airline business to compete in the low-cost airline trend of the business. With IT system linked the significant information Boeing improve operational efficiency both itself and its customers, all of which want to pursue in aviation supply chain. b. Differentiation Boeing create total solution
By using a framework by (Porter 1980) we can illustrate the compatibility of such a strategy in the existing aviation industry Potential Entrants Despite the high volume of new entrants during the period of easyjet’s inception, only a minority were actually able to survive. This was mainly due to the low usage of low cost air travel by customers as they were still unwilling to transition into the form of air travel. In short, air travellers still preferred the old system which involved having inflight service as well as benefits that would be derived if a person was travelling long distances. Buyers As easyJet offered flights at prices, customers had little to worry about as they were paying amounts far lower than what was required on normal carriers. Additionally, due to the limited competition as well as its ability to keep prices low, easyJet was able to successfully offer stable prices to its customers while ensuring sustainable levels of profitability.
There are several options available for customers to choose in this industry because the standard product and service are in this industry, so customers are more care about the price. And also the Internet makes customers research cheaper flight much easier than before and switching cost is low. The threat from substitute is high. Numerous options for customers can instead airlines, such as trains, buses, boats, and personal vehicles. Customers usually desire a cheaper way to travel if there are many options for them.
JetBlue Airways incorporates several methods for success; high quality customer service, low-cost flights as well an excellent product which focuses on customer needs. By providing their customers a superior level of customer service that seems to be almost non-existent in this day and age, JetBlue Airways provides services to those areas that were not receiving the attention that they could use as well as tapping into those markets that were offering higher priced flights “We focus on serving markets that previously were underserved and large metropolitan areas that have had high average fares” (JetBlue, 2004). By doing this, they are able to capitalize on a market that is not being utilized by other travel businesses. There are a number of risks that JetBlue seems to have regarding this 10K/A 1. Highly competitive industry 2.
If the goal is reasonably defined and the focus is sharp and continually reinforced, it is easier to unify through a sense of common purpose. In Four Seasons, Sharp knows that in order to meet their main company objectives, they must lower costs and increase service and product quality. Sharp’s method of leading the business provides an evident that a leader must be responsible in the hospitality industry and that responsibility is the most essential quality of leadership. He is sure that when the personnel see that their leader takes responsibility because of his movements and roles, they are more likely to follow this ideal. As a result this will positively affect the workforce because the industry is one with high turnover rates.
Advances such changing engines from piston to jet engines and new software allows aircrafts to function more efficiently with less wear and tear and for longer period of times. Additionally, Delta’s changes in depreciation from 1986 through 2006 had a positive effect on the company’s financial statements. Although depreciation does not affect cash flows or revenue, it does have an effect on the bottom line. By stretching out depreciation, Delta decreased its depreciation expense resulting in higher net income. This is very beneficial for Delta; the airline industry is always being pressure to show more profits and results.
The cheapest way to travel around the world. Write now Article Tools by James Johnson The cheapest way to travel around the world is to get paid for traveling around the world, and there are several ways to do that. To start with, there are always airline companies looking for employees will to travel. If you have the right qualifications and can pass their entrance requirements, you can get a job that requires you to travel. Grant you there are few airlines that go all the way around the globe, but they will usually have exchange programs with sister airlines and you can go any where.