Case Analysis of Porter Airlines and Their Business Level Strategy

4573 Words Apr 17th, 2015 19 Pages
Through Their Expansion Plans, How will Porter Airlines Effectively Utilize Their Low-Cost Business Level Strategy to Increase Their Customer Base?

Table of Contents

Executive Summary…………………………………………………………………….p. 3
Porter Airlines…………………………………………………………………………..p. 4
The Expansion..………………………………………………………………………...p. 4
What is Organizational Strategy………………………………………………………..p. 7
Porter Airlines Business Level Strategy………………………………………………..p. 9 Core Competencies …………………………………………………………….p. 9 Competitive Advantage………………………………………...………………p.12 Low Cost Business Level Strategy………………………………………...…..p. 13
Low Cost Business- Level Structure………………………………………………….p. 15
Conclusion…………………………………………………………………………….p. 17
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Deluce created Porter airlines to be a regional short-haul airline; starting off with just 2 lone aircrafts shuttling between Ottawa and Toronto but over the years has seen continuous growth.
Now serving eastern Canada and northeastern United States, Porter has increased routes to 13 Canadian destinations from Thunder Bay, Ontario to St. John’s, Newfoundland and from Chicago, Illinois through to the Atlantic coast. Fundamental to Porter’s business model are routes in and out of key business centers such as Toronto, Ottawa, Montreal, Chicago, Boston and New York as well as select recreational destinations including, Mont Tremblant, Quebec, Burlington, Vermont and Myrtle Beach, South Carolina. Porter has grown to a fleet of 26 Bombardier Q400 turboprops. By 2012, Porter’s share of passenger traffic on the Ottawa-Toronto corridor had risen to 25% (Porter, 2015), with annual passengers loads increasing from 26,000 in 2006 to 2.5 million in 2012. They are ranked an official 4 Star Airline in the World Airline Star Rating by Skytrax and are rated second in the world in the Top Small Airlines category by Condé Nast Traveler’s Readers Choice Awards (Porter, 2015).
The Expansion In any organization, change is needed to stay competitive and profitable in an industry, Porter Airlines is no exception. The company’s goal is to create value by increasing

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