West Jet – Strengths & Weakness
WestJet Airlines is one of the low cost air carriers of Canada. In a very less p of time WestJet had gained the position of market leader in domestic airlines in Canada. The main reason behind this success could be the strategies being followed by the management while providing services to the customers. Providing excellent customer satisfaction seems to be the motto of the firm. Besides holding its position as the market leader Westjet proactively maintains its standard as a leader of environmental policy in the airline industry through corporate and individual responsibility.
As well as adhering to all of the local, national and international standards, West Jet takes hands on accountability approach where no guidelines exist to ensure that the corporation remains responsive to current environmental issues and to prevent new environmental concerns from arising. WestJet strives to use and develop technologies that are environmentally sound. It also recycles and supports the use of recycled materials where possible. Employees are also advised and encourage to make health – conscious and environmentally sound decisions. This is ensured through proper training and the adequate funding needed to aintain a high standard of environmental responsibility. (West Jet Annual Report, 2003, p. 39).
Strengths of WestJet Airlines:
Concerning strengths and weaknesses of the firm, a SWOT analysis is require to assess the extent to which the strategies of the airlines have been successful. SWOT stands for strengths, weakness, opportunities and threats. Strengths and weakness are the internal factors while opportunities and threats are the external factor. Here we would be considering only the internal factors. The strengths of WestJet are obvious. The airline is a profitable organization.
The success of WestJet could be credited to the different management strategies being implement in the firm. These strategies especially the customer retention strategy are formulated and well implement considering the competitive environment in today’s world. The strength of WestJet Airlines lies in the below mentioned factors:
- Emphasis on customer service and customer service relationships.
- WestJet’s no frills strategy does not only mean a cut in cabin crew, but also allows a faster pre-flight preparation, thereby reducing the time grounded as well maintaining low fare. Better passenger services compared to the competitions, especially Air Canada.
- High aircraft utilization.
- Minimization of operational costs on the board which is obtained by optimally utilizing the man power resources.
- Strong focus on cost leadership and benchmarking.
It is highly environmental friendly which is reflected on the activities being carried on under recycling. WestJet fully supports recycling of waste de-icing fluid. West Jet contracts to use propylene glycol wherever possible instead of ethylene glycol for aircraft deicing in most of its routes and wherever it is logistically available.
Weaknesses of WestJet Airlines:
- Too much dependence on the business ravel market segment.
- Increased dependence on passenger revenues rather than having a diversified source.
- Domestic airline with no exposure in the regional – international segment.
- Limited viable expansion possible into newer destinations over and above currently served.
- Strict competition from Air Canada.
The weaknesses are obstructing as barriers in the further growth of the firm. In order to overcomes these weaknesses and retain its position as market leader, it becomes highly essential fro WestJet to utilize the different opportunities and convert the different threats in to its strengths.