Case Analysis 

Case Analysis

Please read the attached case and answer the following questions below with deep understanding of case information, and present exemplary cases of applying theories and pulling information together. Answers should be discussable and should not be more than 150 words.

Q1 – External assessment: Going through the five forces, do you think the airline industry is an attractive industry or not? Using the PEST framework, can you identify any opportunities and threats for companies operating in this industry?

Q2 – Business strategy: What is WestJet’s business level strategy? Please identify the key aspects of this strategy using Westjet information. How does the point-to-point system (compared with the hub-and-spoke mainline system) that Westjet adopts contributes to its cost advantage?

Q3 – Strengths & weaknesses: What are the strengths and weaknesses of Westjet? What about Air Canada in comparison? Have the strengths and weaknesses of Westjet changed over time?

Q4 – Airport change: Back in 2004, WestJet moved into Pearson International airport with a loss. Do you think that was a good move? Why?

Q5 – Strategic change: Among all the changes (such as offer leather seats and stage lengths) that Westjet has made in its history, which of them belong to business level strategy and which ones are functional level improvements? How have WestJet’s customer groups been changed? What can you tell from the change in stage lengths between 2003 to 2008? (see Exhibit 1 & 2)? What does this change in stage length mean to Westjet?

Q6 – Second fleet: What are the implications of adding a second fleet of airplanes? Would you rather penetrate domestic market by adding smaller planes or continue to expand international market?

Q7 – Strategic alternatives: Going forward, any strategic advices from you for Westjet? Please recommend two business level strategic alternatives, along with three criteria that senior executives may use to compare the two alternatives.

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