Air Canada recently proposed a plan of initiating a discount carrier in the following year, but it has been shut down by the union representing flight attendants. The plan was aimed to for further expansion of the company and to take control of some of the market space currently held by companies such as Transat, Sunwing, Sunquest, and WestJet Airlines. Air Canada has used a low-cost airline in the past called Zip Air Inc. and it is believed to be one of their primary options for this plan. However, it is understandable that the union turned down the plan because I believe that this operation would pose a threat to the jobs of Air Canada’s mainline staff.

I believe that WestJet has the competitive edge over Air Canada because they already have a low-cost carrier and their costs are 30% lower. If Air Canada is able to initiate this plan, the chances of it being successful are high because Canadians have the desire to pay the lowest possible fare when travelling. However, failure to launch their discount carriers may force Air Canada to downsize their company to reduce their total costs. CUPE members will vote on the revamped copy of the agreement next week.

Article:   The Globe and Mail

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Canadian Tire’s executive staff have been busy analyzing Target, inside out, before the second-largest discount retailer of the US will soon make its way onto Canadian soil. Recently, Canadian Tire relaunched its e-commerce website and is working diligently to expand its product line. In addition to Canadian Tire, many other Canadian retailers will also be on their toes until Target’s arrival in 2013. Even if Canadian Tire is able to drastically expand its product line, many consumers will still choose to shop at Target. Why? I strongly believe that it’s because Target will be able to offer highly competitive prices in addition to exemplary customer service.

I think that Canadian Tire is overlooking the problem of poor customer service in their stores. Expanding their product line is a necessary change, but the level of customer service is what consumers remember most about their shopping experiences. In order for Canadian Tire to compete with Target, they will need to lower their prices, improve their product line and most importantly, address the issue of poor customer service. It will be interesting to see how long it takes for Target to wipe out its vulnerable competitors and take over the market with Wal-Mart.

Article:   Financial Post

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iTunes released and banned Phone Story, an app that allowed Apple customers to take a tour of the production of their iPhone. Apple is also guilty of using an inexpensive method of manufacturing for one of the best phones in the market, the iPhone. Reports indicate that the dazzling Apple iPhone was produced in Chinese sweatshops. Apple isn’t the only company guilty of using sweatshops. Not too long ago, Nike became aware of how the use of sweatshops could be detrimental to their image. Companies often turn to these manufacturing methods in order to lower production costs and maximize profit. Although the vast majority of iPhone users are aware of where their smartphones come from, their support for Apple hasn’t diminished.

The underlying issue here is that many companies are outsourcing the production of their goods to places where employees who are underpaid and are forced to work long hours in poor working conditions. Companies are trying to reduce manufacturing costs, even if child labour regulations are violated. Many companies, including Apple, will need to distinguish the fine line between lawful and unlawful business practices to prevent their brand name from being tarnished.

Article: TechEYE
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