West Jet Airline Business AnalysisIntroductionWest Jet is a company that has been in operation since 1996. What this airline has achieved within that period leaves a lot to be admired about it. The company has been built upon a cost as its main market positioning strategy. It is quite interesting how the company has managed to bank on the cost strategy even when the business environment is very dynamic. This report seeks to establish the solutions to some of the questions. The report analyses some of this areas of focus that have set apart this particular company.
It sheds some light in the effectiveness and how real some of these strategies have worked. This is a comprehensive analysis that touches on key aspects of this company that many investors and other stakeholders may be interested in knowing. The start of West jet company is attributed to the efforts made by four friends namely, Clive Beddoe, Tim Morgan, Donald Bell and Mark Hill. These are the people who bore the vision of this airline. Their desire to excel in the aviation industry drove them to putting together ideas on how best to exploit the opportunities in this sector.
They carried out a detail survey on the state of the aviation industry with the aim of establishing some of the unmet needs that they could capitalize upon. Upon carrying out the market research, they embarked on the agenda of developing their airline in Canada. Regardless of the number of difficulties they might have faced, they started realizing the fruits of their investment after only three years. The company had successfully launched the IPO and achieved many other things.
The company has continued on the same line through ensuring customer satisfaction. This report dwells on most of these aspects that have enabled this company to experience outstanding performances. At the same time, the report covers the specific market niche that has been the main target of this airline and how it has managed to be profitable through exploitation of this market segment. Content & Analysis Company History and Description: This is one of the oldest Canadian airlines. The airline has undergone tremendous growth from the time it had its first flight.
The company started way back in 1996. The first aeroplanes that the airline used at first were second hand and in overall the airline had very few employees. The improvement its operations started progressively in terms of service delivery (Rosen, 2004). One of the company’s milestones was the Initial Public Offer that was made in 1999. The aim of the company was to raise an estimated $25 million. This was instrumental to the company’s capital structure. It was planned that the money raised could finance the expansion of projects of the company.
Due to this, the airline was able to add three cities to the airline’s route map. In the company’s progress, changes in the management were quite inevitable. In most of the cases, differences among board members implied a new CEO. In 2000s, the airline continued with its expansion even to international platform. This was after the airline had exploited the local opportunities effectively. By that time, the airline had numerous number of local airline routes. The company’s success has been manifested through expansion of destinations from 3 in 1996 to 71 in 2010