Class 19- WestJet an Entreprenurial Business
WestJet was originally founded in 1996 by Clive Beddoe after he was tired of paying for overprice flights in Canada and the U.S while using Air Canada. What started with a single airplane that only flew low-cost flights in Western Canada, has grown to be one of Canada’s most successful entrepreneurial companies.
Entrepreneurial companies differ from small businesses by four ways including: amount of wealth created, speed of wealth created, innovation, and by risk. Originally, WestJet was huge risk for Clive Beddoe as he had to invest large sums of his own money for start-up and maintenance of the company in it’s early years. However, the single plane fleet has now grown to a ninety-six plane fleet which services seventy-one destinations throughout Canada, and the U.S, and produced passenger revenue of $2.2 billion in 2009. WestJet is continually innovative in ways to improve their customer base, and customer relations, which has helped them steal a large portion of the market share from Air Canada for flights in Canada. WestJet is an innovative entrepreneurial company that has flourished due to it’s high value, low cost flights that offer air passengers an overall experience that is comparable, or better then higher cost flights in Canada, and the U.S.
Taxes “soaring” for flying in Canada
Air Canada takes aim at aviation “sin” taxes
By interviews with Air Canada employees and executives, the article writer, Bruce Campion-Smith, reveals the “sins” associated with air travel in Canada. The federal government of Canada treats air travel as one of these “sins”, and imposes outrageous taxes for passengers flying in Canada. An Air Canada executive says these fees and taxes are costing Canada “a place as a global air hub.”
On average Canadian air travel users are paying close to $37 more than American air travel users. This is causing many Canadians living in the southern parts of Ontario and Quebec to fly from across the border airports such as Buffalo, and Bellingham, where they can pay up to 229% less in ticket fees and charges. According to an Air Canada employee many of these air travel fees in Canada serve no real purpose, and don’t help to benefit our air travel in any way.
The fact that Canadians are willing to drive, bus, or even fly across the border to fly somewhere else in the world poses a great threat to Canadian air travel. Airports and air travel are vital to a strong and sustainable economy, and these fees will only serve to deter people from coming to, or flying in Canada. Canada’s economy could suffer tremendously as a result of these fees and added taxes. I think the Canadian government should consider lowering these supplemental fees that are unique to air travel in Canada, and review the effects they are having on the Canadian economy and business world.
Corporate Expansion Internationally
In an article by Pete Evans of CBC News titled “International expansion is smart but risky”, the advantages and disadvantages of expanding a business internationally are outlined. The author, like most large corporation owners, is an advocate of doing business internationally, as it is a great way to increase revenue by lowering costs of production, and expanding sales into a foreign market, however, he cautions businesses to be very careful in doing so.
There have been many cases of international fraud in recent years when companies have “jumped” into making foreign deals without researching, or finding out about the company, or market they’re dealing with. Many businesses fall into the trap of thinking international expansion will always be profitable with little work required. Mr. Evans goes on to say that “whats written in a foreign language may not the be the same as whats written in your language. And the foreign language always wins in a legal battle overseas.” He urges companies to be very careful that nothing is lost in translation, and that goals and policies are agreed upon by both sides.
Mr. Evans urges companies to attempt to do business internationally by using the internet first if possible. This way they can get a feel for the foreign market, and the customers they’ll have, without having to deal with the costs and extra regulations of working and living there. Companies have to think long term about their expansion into a foreign market, and not get trapped into thinking about short term profit even if they’ve had a positive international experience before.
I completely agree with Mr.Evans, as there have been many articles regarding companies that have expanded internationally and end up being at a loss, or having a different outcome then expected. International business is a great way to expand and promote one’s product, or idea, but the company, or individual must be wary in how they make this transition.
Volkswagen to have profitable sales in the USA this year?
Volkswagen CEO: Expect profitable U.S. sales
Since the recession of 2007, and difficulties with production in the years before, Volkswagen has not had a profitable year in the USA since 2003. Volkswagen’s U.S CEO said that there Audi Brand made money last year, and he expects the rest of the company to follow suit this year.
During the recession “vehicle density” decrease through the U.S and the world. Vehicle density can be classified as the number of cars owned per person, or in a family. With difficult economics times and high gas prices many families gave up cars, or were not willing to purchase more vehicles, especially European based automobiles, such as Volkswagen’s.
Volkswagen has added a new production facility in Tennessee which will focus on producing vehicles for the “light vehicle market”. This factory is expected to be profitable by 2013, which would be a first in the company’s history. Many car owners are downgrading to smaller, more efficient vehicles due to ever increasing pump prices, and environmental concerns. This factory will focus on producing Volkswagen’s smaller automobiles in hopes of appealing to the new market.
zelijufu.cwahi.net, September 30 2011
Upcoming iPhone 5 to be most successful smartphone ever?
InMobi Smartphone Study Reveals 41% of Mobile Users to Buy Apple iPhone 5
In a recent survey conducted by “InMobi”, a very successful mobile ad network, the iPhone 5 is forecasted to shatter the smartphone market with 41% of current mobile phone users in Canada, Mexico, and the U.S saying they plan to buy the iPhone when it is released. Apple currently holds 27% of the mobile smartphone market share as of June 2011, however, if the iPhone is as successful as predicted that number could jump to 41% of the total market share by early 2012. This would secure Apple’s position as the top smartphone producer in the world.
Interestingly enough, InMobi’s study found that over 50% of Blackberry users are planning to switch to the iPhone 5 within the first six months of its release, and over 50% of previous iPhone users will be willing to make the purchase as well. This could be one of the final devastating blows to RIM and its Blackberry, as its facing ever increasing competition from Apple and Android operating systems, and a dwindling share price.
James Lamberti, the VP of Global Research and Marketing at InMobi stated: “The combination of Apple’s increasing market share in mobile advertising and general consumer interest in their latest technology is another boon for the mobile advertising industry. Apple is currently the clear leader in terms of compelling user experience and customer loyalty, and we feel that their quality and pace of innovation when it comes to mobile devices will continue to improve the content and advertising experience for consumers for iPhone 5 and beyond.”
The iPhone 5 is set to be unveiled on October 5th by Apple. Its been declared as one of the most anticipated devices of the year, and of all time, and could strengthen Apple even further as the world’s “Best Brand”.
Sean P Aune, 2011, Rumored iPhone 5. ONLINE IMAGE: http://www.technobuffalo.com/companies/apple/iphone/iphone-5-slated-for-mid-sept-release/, 30 September 2011
COMM 101, Assignment 1: The “Extra” Costs associated with Phone Bills.
In 2005, an article written by Ben Kage, was published regarding the inherent dangers of phone bills, and the costs associated with them. A study completed by “The Gartner Group”, a company based on technological research, revealed the stat that 80% of U.S Businesses are overcharged on their phone bills. Many large phone companies include hidden costs, or add extra services to a user’s phone bill, causing the amount due to increase each month. Many users simply “brush off” the extra fee that appears, however, they never pause to see what the charge is really for. Private firms and consultants are now hired by large corporations to check their phone bills for the “extra” costs, or “accidental” errors made by their phone company. In 2005, Frank Stockzko saved a call center over $100,000 from phone bill induced charges while hired as a private consultant. When the phone company was asked about these extra costs their reason was “accidental” errors occurred in their billing system. However, many other companies received the same excuse from the billing company.
With these hidden, and “accidental” costs arise several ethical issues with the phone company being used. Can the phone company be trusted to provide the user with an accurate statement on their phone usage? Will the user be overcharged? And finally, is the user receiving the best service for their money, or should they look elsewhere? From this article it is evident that phone users should be wary of their company, and be diligent to check that the company is performing in an ethical manner each month.
http://www.naturalnews.com/015625_phone_bill_telecommunications.html