Assignment #1 Introduction Air Canada was established in 1937, provides scheduled and charter air transport for passengers and cargo to 182 destinations worldwide. It is the largest airline of Canada by fleet size and passengers carried. Air Canada is governed by an eleven-member Board of Directors committed to meeting high standards of corporate governance in all aspects of the Corporation’s affairs. Our Mission – “Connecting Canada and the World” Our Vision – “Building loyalty through passion and innovation” PESTEL Analysis: Political Factors: "The 'Open Skies Agreement ' between governments of US and Canada in March 2007 came into action as it liberalized the air transportation services. Cargo and passenger services as well …show more content…
The growing competition however does provide consumers with several choices and for Air Canada to be efficiently and constantly drawing its consumer it must offer " money for worth" deals, such as new multi-pass product, holiday packages and other promotional deals that has not yet been utilized in Canadian market. The possibility of Buyer power is moderate. Threat of New Entrants: Air Canada can be considered a fortunate airline as it does not have any major threat from new entrant stepping in Canadian airline industry due to the strict government legislation and regulations. “Even though the entry barriers for new airlines are lower in a deregulated market, still prospect of a new entrant entering the market is weak to moderate. Rivalry: The competition between Air Canada, a traditional carrier, and West Jet, low cost carrier is rigorous in Canadian airline industry. Though Air Canada is Canada’s domestic and international airline and has dominant hold in the Canadian market, West jet is giving the airline tough competition with its effective price point, profitable routes with greater focus on domestic market. The rivalry competition is moderate to …show more content…
Canada being a big country and the travel time taken by road is far greater compare to air flight, the consumer prefers to travel by air to reach their destination in timely manner “The threat of substitutes is moderate due to the above stated reason. Marketing Mix: Product/ Service: As discussed earlier, Air Canada offers various services to its target market. For these services it uses Boeing 777s and Boeing 787s as a visible product. To ensure unique services are delivered it introduced some international routes to Tel Aviv and Tokyo (Air Canada, 2018). Furthermore, Executive Pod, International Business class, Economy class, North America economy class are some of the finest examples of services offered to different target market by Air Canada (Air Canada, 2018). Price: Air Canada assure the consumer 's that it 's price the best in the region as it states, "Stop searching far and wide. You’ll always find the lowest Air Canada prices right here on aircanada.com. Air Canada along the way has set itself as brand that is focused on its consumer 's affordability aspect. With its pricing guaranteed approach, the Airline can draw consumers to travel with airline with faith that they have spend their dollar in a smart
In the short years leading to World War one, the country was deeply in debt which in turn was devastating to the Canadian economy. There was a wide spread drought causing great hardship onto Canadian wheat production and farmers, with such low production the expanding railway system of the time could no longer find it feasible to run much of Canada’s large railway network, causing the job loss of 50,000 workers in 1914 alone. When Canada was forced to contribute to the war in the coming months of 1914 the Canadian government had crushing public debt, resulting not only in mass munitions and equipment shortages for the soldiers being sent overseas but, contract cancellations, severe cutbacks, and mass layoffs. The
Air Canada, one of the largest airlines in North America, has had substantial ownership and management changes since its founding in 1937. The airline, which initially began as a government-owned entity, had a monopoly on domestic air travel in Canada for many years before it was eventually privatized in the late 1980s. At the time, the transition towards deregulation was controversial and sparked intense debate across the nation about whether a significant change was necessary. However, there was also a need to take into account the growing demand for less governmental regulation, more industry competition, and shifting global trends that favoured unregulated aviation sectors. As a result, the decision to privatize Air Canada helped to overcome
In business, every company needs to have a competitive advantage over their competitors so that they can distinguish themselves. These competitive advantages primarily come through an ability to generate more sales, achieve greater margins, achieve a lower cost base, or attract and retain more customers. At Bombardier the main ways they achieve their competitive advantage is by investing in leading mobility solutions, growing local roots in key markets, and achieving flawless execution. Bombardier has sales of commercial airplanes in ninety countries and a presence in nineteen countries, which allowed them to be one of the leaders in the sale aircrafts in 2014. The company recently invested into a 100% new aircraft with no compromise.
DAPTS CONSULTANTS ® REPORT ON BELL CANADA ENTERPRISE (BCE) COMPILED BY: PRABHLEENGREWAL TARANDEEP ANIKET GUPTA SOHAIL DEEPAK GABA SAMARVEER SINGH KAMRA PRATEEK SINGH Contents INTRODUCTION 3 COMPANY OVERVIEW 3 PRODUCTS AND SERVICES 4 HISTORY 6 REVENUE ACCORDING TO THE SECTORS 9 VISION AND MISSION STATEMENT 10 SWOT ANALYSIS 13 INTRODUCTION Bell Communications Enterprise is the largest communications company in Canada with a subscription of approximately 21 million users out of a population of 35.50 million approximately . Bell deals in all three types of businesses as it provides services to consumers (B2C), business (B2B) and the government (B2G). It is a company known to provide the best quality communication service
Canadian coffee and snack industry is facing increasing competitions because of the small capital requirement which causes low entry barrier (Alvarez, 2015); it confronts low globalization as the majority of coffee and snack shops operate locally (Alvarez, 2015). In this industry, Tim Hortons and Starbucks are two main dominators that own the majority of the market share (Alvarez, 2015). Since Tim Hortons and Starbucks are already matured in the domestic market and are continuously expanding to the global market, it grants the competitiveness for both companies (Alvarez, 2015). However, in order to increase the
There was no need by the early 2000’s to safe guard the flying industry because of all the new an up coming global private airline. These airlines competed with each other for survival while Air Canada was funded and sometimes bailed out by the Government, this lack of competiveness lead to the down fall for Air Canada as a publically owned
Quality vacationers: These customers treat the travel as a part of their holiday experience and therefore they fly with carriers that provide extremely superior services. Frugal flyers: These types of customers tend to seek out the lowest-cost carriers for economic reasons, but still expect their flight experience to be a good
For worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory
Canada Post also provides discounts for customers that ship a large volume of packages or are enrolled in their VentureOne loyalty program (Mitchell, 2014). By doing so, the organization caters to customers with unique needs and budgets, maximizing revenues across the board. Lastly, Third-degree Price Discrimination involves charging different prices to different customer segments based on factors such as location, volume, or customer type. For instance, Canada Post offers discounted prices for businesses over consumers, domestic shipping over international shipping and specific segments like non-profit organizations, educational
The inauguration of Virgin Australia Airlines, by Sir Richard Branson, as a domestic carrier in 2000 basically aimed at the convenience of the budget travelers. The Airlines was inaugurated as relaxed informal airline. Sir Richard was open-minded, amiable, and generous with his management team, imaginative, audacious and exclusive in his thoughtfulness. Initially started as a low-cost carrier, the company improved its services to turn itself into a “new-world carrier” as described by themselves (Virgin Blue media release, 2011, para. 2).However all these faltered when Qantas’ past marketing manager took over during 2011.
bargaining power of buyers in the industry is high due strong as low switching costs and plethora of options in the market. Now, e-ticketing has improved the chance and flexibility to search for different airlines companies leading to down word cost pulls and upward services push. Furthermore, it eases of switching between different airlines companies. Therefore, for airlines they need to keep customers in the fold by providing air miles system to gain customers' attention and retain them.
Social Growing competition and capacity amongst airlines, lower air fares and more relaxed travel restrictions in many regions have made international travel a viable option for an increasing number of people coming to
• Threat of substitute goods: Threat of substitute good is high in this industry. If a private company or government introduces any fast road transportation services in the United States, then traveling through airline can reduce. Air travel is somehow costlier than road transport. If the same kind of leisure will be provided in public transport with greater speed, then the share of airline industry can decline. This threat can be reduced if their products offer more value than other substitute
Will start with application of Michael Porter’s generic strategies to ‘Affordable sky’ (a new, no Frills airline) which is about to enter the U.S. market. Second we will try to work as a consultant for Affordable Sky’ airline, and based on the above excerpts about the airline industry, will try to choose the suitable entry strategy for this new company to adopt and we will try to explain why, finally we will discuss which diversification strategies or alternatives we may suggest and why? Also, explaining why we would advise Affordable Sky against having a joint venture with another established airline company. The question headed with this statement: ‘Recently, the growth and profitability of commercial air carriers in the USA has been impacted by many external factors. This industry saw four major players (United, US Airways, Delta, and Northwest) file for bankruptcy protection in the last decade or so.
4.2 Price – Caribbean Airlines offers various types of prices for tickets, which is known as booking classes, each differing conditions, for travel within the Caribbean, South America, North America and Europe. These booking classes fall under Four Fare Families: Non-Flexible Fares – These are the lowest available fares, which have some restrictions on cancellation, refunds and upgrades. Semi-Flexible Fares – This fare offers some flexibility and benefits related to carrying on bags, ticketing fees, upgrades to business class and refund