Air Canada Case Study

According to the lecture, “the environmental scanning is the process of continuously acquiring information on events occurring outside of an outside an organization to identify trends, opportunities, and threats to a business.” vii When people analyzing marketing environment, includes microenvironment (internal) and microenvironment (external) forces. The environmental scanning with internal organization analysis includes company capabilities, competition, and corporate partners. viii According to the textbook, the external organization analysis also known as macroenvironmental factors, which includes culture, demographics, social trends, technological advances, economics situation political or legal environment (CDSTEP), which influence company. ix  

In the firm’s microenvironment, the first factor that influences the consumer is the company capability. x The major purpose of the company is satisfying the consumer needs or wants, in another word, the company provides excellent goods or services to consumers. As for air Canada line, provide good consumer services of flight trip to consumer. The airline expands more services, such as Air Canada Express, packages featuring accommodation, roundtrip airfare on board Air Canada, Air Canada Rouge, Star Alliance partners, Aeroplan flight rewards cruises trip, tours and excursions. xi                                                 

The competition also has the significant influence in microenvironment, Air Canada line might do have much competition. According to the research, Air Canada and WestJet have delighted in a duopoly in Canada's market for over 10 years. xii However, in appendix C and appendix D, Air Canada still holds a place of quality in Canada's flight industry, speaking to an about 50.5% local seat share for the seven days stretch of 5-Jan-2015 to 11-Jan-2015, and a 34.3% offer of international seats. xiii WestJet is one of the biggest competitors for air Canada. xiv The price war usually happens in the airline's compaction. As people know, WestJet is Canadian low-cost airline, the company attracts consumer through low price than the other competitors include Air Canada. xv WestJet lowers the price to expand its turf war with Air Canada. WestJet also provides new route from Glasgow to its stop-over service to Dublin beginning the summer in 2015. xvi The flight seasonal from Toronto via St John’s to Dublin will be launched in 2014.8 The airline is also purchasing four Boeing 767-300ERs for the future consumer services. xvii   

To have success in the market, company also need corporates partners. The star Alliance will be the best example to analysis corporates partners. This network offer flights to the consumer including 28 airlines. xviii The purpose of this network is to provides travel experience, thought the corporation with the 28 or more airlines company. xix Each airline has own distinctive culture and unique style services. Connect the different companies to take advantages of the network and provide consumer co-locations at airports, infrastructure, communication initiatives and other services. xx The other website also has the same function as star airline, such as Expedia these websites also provide hotel information.   

In the firm’s microenvironment, companies affected by demographic, cultural economic, technology, social trends and political. xxi Air Canada airline is a Canadian company, so the target market is in Canada, so the most consumer is Canadian. However, air Canadian also improve the new international growth opportunities to increase profits and diversify its network. According to the research in 2017, “With a fleet of 365 aircraft, Air Canada carries more than 41 million travelers annually to more than 200 destinations on 6 continents. xxii We are Canada’s number one airline, with a 55 percent share of domestic travel and a 35 percent share of international and transborder travel. xxiii Out of 4 Canadians travels by Air Canada at least once per year.” Based on the 30 days months, 2,961,000 global passages and 2,368,800 Canadian with 18,000 global flights and 14,400 flights inside Canada. xxiv There are 52% men and 48% women of all passages. xxv And 80% of the passage speak English and 12% speak French. Also, 55% of passages have taken the vacation outside Canada in the past 12 months. xxvi Those data from research show the more international passage than the Canadian passers and over half passengers booking flight for traveling. xxvii  

Air Canada advance in technology to gain more profits. The company provides Amadeus technology for global online shopping and book experiences. xxvii The new technology provides more convenient services, enchanted search option to provide more efficient book experience and re-engineered website. xxviii Through the online airline booking system, Air Canada’s all-new designed websites offer simple process to search and online shopping, the advantages includes, simple step for booking flow Simplified booking flow with fewer steps, more search options, consumer can use touchscreen devices including smartphone, tablet, laptop or desktop to have more convenient book experience and provides 7 languages for worldwide usage. xxix The different also is an example of the different cultural influences. Different language helps the company better worldwide services.   

To attract more consumer, Air Canada needs to provide better services. During 2016 to 2017, air Canadian launched 12 transborder routes to the U.S. and the company also provide the non-stop flight for international services. xxx Air Canada provides high-level consumer experiences and expands the number of the consumer. Skytrax shows “air Canada Air Canada is the only international network carrier in North America to receive a Four-Star ranking.” xxxi In the later 2016, air Canada was chosen by the readers of Business Traveler as “Best North American Airline for International Travel”. xxxii The company improves in the aircraft, global network, International Business Class service, Maple Leaf Lounges, concierge service. These strategies help the company to remain the loyal consumers. xxxiii Aeroplan program which is Air Canada’s partnership provides redeem Aeroplan Miles, the consumer can earn miles and more additional award. xxxiv Air Canada help children through Air Canada Foundation, which help sick children for medical care through 15 pediatric hospitals across Canada. xxxv Air Canada also concern the impact of the environment. The airline appeal people to decrease environmental footprint, less carbon, less water and less noise in the environment. xxxvi The company provide electronic messages replace paper documents, to protect the environment and built the company reputation. xxxvii    

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