West Jet Case Analysis Essay examples

4437 Words Dec 17th, 2012 18 Pages
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|WestJet: Environmental and Porter Analyses |
|BUSM 4200 | |

Table of Contents
Executive Summary 2
Mission Statement and Vision 4
1. 4
1.0 Political/Legal 4
2.0 Economic 4
3.0 Socio-cultural 5
4.0 Technological 5
…show more content…
A reduction in customers could also affect revenues and the results of operations.

2.0 Economic

Although the current threat of global recession may decrease demand for vacations, WestJet as a low cost provider is in a strong position to capture a large percentage of the remaining demand. Recently announced expansion into the growing regional market through purchase of more short-haul efficient turboprops is one of the biggest ways WestJet seeks to continue its cost leadership and year over year revenue growth.

The trend of rising fuel prices is expected to continue, having cut into WestJet’s 2011 revenue4. However, fuel prices are hedged over 20% for this airline, somewhat softening the effect of fuel price shocks4. In order to counter these high jet fuel prices, WestJet recently introduced a new state-of-the-art money-saving feature on board all flights. The company will now be mixing air with helium in its ventilation systems to lighten the weight of the aircraft5. With a maximum takeoff weight of more than 150,000 pounds, the mixture could save WestJet approximately 3 to 4 % on Boeing 737 flights, and in turn, pass the savings on to its guests5.

3.0 Socio-cultural

Over the past 10 years consumers have changed in numerous ways. The most obvious change in is consumer preferences. Some major trends include increases in

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