WestJet
WestJet has announced plans to expand flights into Europe but the destination the company is heading might not be the right path. In Chris Sorensen’s business blog, he describes WestJet’s plans to implement premium economy seating, which means WestJet will need bigger wide-body aircrafts. Even though expansion and premium seating seem like a good idea, and make are “big money makers on overseas flights”, it may ultimately cause them to loose a lot of their customers.
WestJet’s business model and competitive advantage is flights at a discounted cost. According to Porter’s generic strategies, WestJet current falls under low cost focus strategy. They have an all economy class seating system in a single type of plane to lower their costs, which is a system that has brought them success. It seems though now WestJet is trying to find ways to increase profit, and the way they are going at it is contradicting their original business model. WestJet’s customers who were originally attracted by the low prices will be turned off by the direction the company is heading.
“Business Blog.” Macleansca WestJet Bound for Europe Comments. N.p., n.d. Web. 18 Nov. 2013. <http://www2.macleans.ca/2013/11/15/westjet-bound-for-europe/>.