WestJet Airline

WestJet Airline

WestJet Airline is a cost-effective Canadian transporter and the company was established in 1996. The company is the second-largest air transporter which conducts a myriad of domestic flights. For instance, the company provides air services to 86 destinations, such as the U.S.A and Canada. The company is also dedicated to upholding cost-effective operations and to safeguarding endless growth.

WestJet PEST analysis

Political factors

Political factors play an essential role in the long-term sustainability and effectiveness of any company. To emerge victorious in a vibrant market all over the world, a company should spread the systematic risks of the political climate. Therefore, WestJet can prudently examine issues such as political constancy in and out of the country. Varying guidelines can have a noteworthy influence on the success of a company. To overcome such challenges, the company should carefully observe contemporary movements in the country’s political setup. High levy affects international trade and prevents exports. The company should, therefore, establish new businesses in areas where taxes are considerably low for it to make returns.

Economic factors

Any company and especially WestJet needs to comprehend financial influences such as foreign exchange and interest rates and how they govern the average financial environment of a nation. The commercial growth of a country plays a significant role in the progress of an organization.  It is also substantial to comprehend an organization’s lifecycle stage. Venturing in an already established industry can prove difficult due to domination by specific industries. The company should also consider operating in a market where there is the availability of a significant number of unemployed individuals. Working in such a market can reduce the manufacture cost of a corporation as the people available can offer cheap labor.

Social factors

The operations of an organization are determined by the beliefs of the people where the organization is located. It is, therefore, essential for the management of an organization to understand what the people in a given locality want before establishing a company. Besides, studying demographic features that can help an organization choose the right market with a high possibility for development.  Moreover, the organization should review the social status of the people in the locality. They should ensure that their goods and services are affordable to people to increase profitability.

Technological factors

A thorough examination of the technological environment can play an essential role in achieving particular business-related benefits, such as enhancing functional competence. The following technical factors can influence the business performance of WestJet. For instance, the expansion of information and communication technologies has triggered the acceptance of new marketing methods to increase teamwork with clients. The use of different social media platforms has also increased the client base.

WestJet also needs to recognize the investments made by rivals to comprehend how new technologies inspire an organization’s value chain. In such a condition, WestJet should capitalize on unruly technologies to capitalize on the incomes and reinvest the benefits of upcoming disruptive technologies.

If an organization attempts to get into a new market, they must do some study about factors such as political, economic, social, and technological factors. The company must understand the present developments in the country’s political setting, which can change the management’s significances towards the growth of new companies. The company must also understand the economic environment to make it possible for them to estimate the growth curve of an organization. For instance, establishing a branch in an area with a high rate of joblessness can offer an excellent opportunity for cheap and available labor hence reducing the production cost of an organization. The company should also collaborate with individuals in the locality who understand the way of life of the people. In a nutshell, the company should measure the strengths and weaknesses of the above factors for the greater good of the organization.

WestJet SWOT analysis

WestJet strengths

WestJet offers cost-effective transport services in Canada, which makes it one of the most prestigious companies in the country. The company provides excellent customer satisfaction by proactively maintaining its position as a leader of environmental policy in the airline industry.           The company also applies different leadership strategies to run the company. The company, for instance, employs customer retention strategies that are well formulated and implemented while considering the contemporary competitive environment.   Besides, the corporation upholds a renewed image than its rivals. The company is also involved in direct engagement with its customers. The company also uses social media to address challenges.

Weaknesses

During the last few years, the company has made many networks and product changes to position itself more favorably among higher-yielding business travelers. This culminated with fare families, which debuted in 2014 with varying levels, allow travelers to tailor their experience. However, leisure travelers still comprise a more significant portion of the company’s passenger mix, and the airline is limited in the number of business travelers it can capture absent a dedicated business class cabin. The company may need to consider how competitive it aims to be in enlarging its business passenger base.

Opportunities

Offering cost-effective services has been essential for the success of WestJet financially. The majority of the corporation’s development has been as a result of amplified regular stage length. Besides, the stage length has been rising as the airline has lengthened transcontinental flying.

The low–fare strategy has played a significant role in the success of the WestJet. WestJet presently produces additional incomes from fees related to itinerary changes and extra luggage. Due to the low flight charges, customers have always purchased more than one air ticket bringing profit to the company.

The company also has the potential to maintain a specific way of life in which they can give their clients the best goods and services while maintaining high standards of responsibility as expected by the government. Through the maintenance of a specific company culture within their company environment, they can create a particular brand image for themselves. They can, therefore, provide excellent services at a considerable cost.

Threats

As the organization heads towards new borders that position the airline squarely in the hybrid space, it must ensure that it maintains devotion among the passenger base. Keeping the initial culture can prove to be a challenge as the clients may feel neglected by the new culture due to the belief that some privileges by the company have been taken out. The company also faces stiff competition from Air Canada, which is more stable due to its vast experience in the transportation industry.

The VRINE framework

Valuable

The WestJet Airlines VRIO Analysis signifies that the commercial properties of WestJet Airlines are significantly prized as these help in investing in prospects that arise. These also help the company combating external threats.

Rare

The workers of WestJet Airlines are a precious possession, as identified by the VRIO Analysis of WestJet Airlines. These workers are exceedingly qualified, which is not the case with workers in other companies. The conducive working environment ensures that these workers do not leave for other companies.

Imitable

The monetary possessions of WestJet Airlines are expensive to imitate, as recognized by the WestJet Airlines VRIO Analysis. These possessions have been attained by the corporation through lengthy profits. New competitors would require equivalent incomes for an extended period of time to accumulate these amounts of monetary incomes.

Organization

The fiscal possessions of WestJet Airlines are organized to achieve worth, as acknowledged by the VRIO Analysis of WestJet Airlines. Such properties are used tactically to capitalize in the appropriate places, making use of chances and contesting pressures. Therefore, these possessions demonstrate to be a foundation of constant viable advantage for the company.

Conclusion

In conclusion, political, economic, social, and technological factors play an essential role in the long-term sustainability and effectiveness of any company. Favorable government policies can trigger the growth of an organization, while unfavorable government policies can hinder business growth. The government should, therefore, ensure that there is political stability in a country to support business growth. An organization should also invest in its employees in order to emerge victoriously. Motivated individuals can yield greater results compared to demotivated workers. Besides, carrying out a background check on the cultural beliefs of people before establishing a company is a determining factor in the success of a business. A company should consider people’s cultural values and also produce goods and services affordable to people to increase profitability.

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WestJet Airline