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.
Cost a) Cost of Production: Albatross Anchor should look at lowering production costs in order to realize greater profit margins. By increasing production, Albatross Anchor will be able to decrease fixed costs. They would be able to spread the costs across more units which would decrease the price per unit they need to pay. Production costs decrease with increases in production levels. This will help to recapture profit margins lost to inefficiency and make them better competitors in their chosen market, (Russell & Taylor, 2011).
All of those factors allowed Telmore to significantly save on its operations and have lower break-even level, and provide ‘no-frills’ service as lower price, which gave it its competitive advantage over TDC. Hence, even though Telmore has to bought the minutes from TDC to resell to its customers, it had an advantage due to its unique offering and lean cost structure. In general, who will benefit from the regulation that forces operators to open their network to competition? * Consumers * Entrants * Incumbents If you were an incumbent operator such as TDC, would you grant access to a no-frills service provider if you were not required by the legislation to do so ? * Yes, because * No, because TDC could allow a company such as Telmore to develop a new customer base, which might be also consisting of migrating customers from other operators and providers, and
Governments in NIC (newly industrialized countries) have tried to lure TNC to their countries. One way they have done this is by keeping the land prices artificially low; this is so the TNC can build factories and other building for less money. They also have a relaxed attitude to environmental laws so the TNCs do not have to pay out for expensive treatments for their waste so it complies with strict laws like the ones they have in the US, UK and Japan. Another thing that attracts TNCs to NICs is the cheap labour cost, weak unions and lack of minimum wage. This means that the TNC can pay workers less, not worry about providing good working conditions.
To reduce emission footprint, the company uses efficient operation strategies to avoid unnecessary waste. Customers WestJet believes that people would rather fly than drive if low fare airplane tickets are available. They also believe that people always have the need to travel to visit friends and relatives. WestJet is targeting these people by giving them the option to fly cheap. Most importantly, lower service for less money does not mean less customer service for WestJet.
The advertisement goes after the common sense of the reader because it is very simplistic. Instead of using data, facts, or any statistics it uses simplicity. The add makes the statement that flying from point A to point B is easier with Southwest Airlines than on one their
By shopping at Goodwill, they can achieve this at a cheaper price. The bargain hunters are looking for a good deal regardless of their income. Being able to find good quality, inexpensive items is important to bargain shoppers. They also want to feel like they got a great item at an awesome low price. Finally, the resellers are looking for good quality, low priced merchandise that they can sell again for a profit.
The resources and capabilities that are critical to Southwest Airlines operations include a no-frills flight service to lower costs and minimize turnaround times, a family type corporate culture that ensures employee satisfaction and a frequent flyer program that retains loyal customers while adding new ones. These resources and capabilities are difficult to imitate by competitors which gives Southwest its sustainable competitive advantage. Southwest operates a linear route structure (point-to-point) through less-crowded secondary hubs in order to avoid flight congestion and high costs that are associated with primary hubs. This strategy perfectly caters to frequent business and leisure travelers who are willing to forego the frills offered by Southwest’s competitors for cheaper tickets. Southwest uses only Boeing 737 model planes for their flights, the usage of 737’s only reduces plane maintenance time and avoids delays.
As known that Costco is focusing on high quality of merchandises at relatively low prices, they have one condition in order to purchase merchandises at low prices, which is number of purchases. For example, to have one product that is cheaper than competitors they have to purchase more from original manufacturers. Therefore, Costco realized that they have to keep the sales volume to be high so they are still able to maintain this advantage. Because of this, they try to keep their slogan in customer minds that Costco has lower prices and they try to same membership money. However, there is a problem that Costco has to deal with is that their profits mostly from its membership fees instead its net income.
Recession is two consecutive quarters of negative economy growth. During recession, there is low level of demand because people don’t have much money to spend. So they look for cheaper products that they can afford. At this time businesses confidence gets low as people aren’t demanding for their products so they would have to cut out their productions as they don’t need to make as much products. At this time they would need to provide cheaper price to attract their consumers and to increase the demand.