Marketing Analysis Report-Air Canada Grade Course (28th, Oct. 2013) Marketing Analysis Report-Air Canada Introduction Air Canada is the largest airline in Canada which was founded in 1936, offering both scheduled and chartered flights to many countries in the world, recently standing at 178 countries (Yerema & Leung, 2013)…
The company offers a range of products, in the form of flight transport services to passengers worldwide, both from Canada to different parts of the world, and vice-versa. The company products solve a range of individual, organizational and societal problems, through offering schedule flights to individuals who are seeking to travel to different destinations of the world, thus solving a societal problem. It also offers other individualized services such as cargo services to individuals and organizations dealing in the cargo business (Mills, 2006). The company also offers specialized Air Canada Jazz and Air Canada Jetz specifically for organizations and some individuals who would want to experience flexible departure and arrival time, and who cannot fit into the normal scheduled flight timetable. The individuals or organizations using this service are granted privacy, security and convenience, while also being granted customized services (Yerema & Leung, 2013). It also offers vacation services courtesy of Air Canada rouge, specifically for leisure purposes, through chartered flights to over 200 different leisure destinations worldwide. Another product offered by the company is the Air Canada Express, connecting over 90 Canadian cities (Milton, 2004). Pricing for the different products offered by the company is on a product-to-product basis, while promotions are done through mainstream media; both print and broadcast, social media, as well as promotional campaigns and special-offers advertising. Environmental Scan Regulatory environmental factors had been favorable for Air Canada in the early years up to the 1970s, where the government applied regulations to ensure that the company had an upper hand over the other privately-owned airlines. The government restricted short haul carriers to only one destination for other airlines, while allowing Air Canada to serve several destinations (Milton, 2004). Its main competitor, CP Air was restricted in terms of the intercontinental capacity, while also being restricted from operating domestic flights. However, in 1987 deregulation of the Canada air market was introduced, and subsequently stiff competition set in, between Air Canada and other regional operators (Mills, 2006). Stiff competition for the company is mainly from Pacific Western Airline. The economic environment for the company was tough especially in the early 2000s, when the company pursued a merger with its major rival, Canadian Airlines, but realized that its economic situation was worse, an occurrence that led to financial problems and cargo and flight delays. This eventually led to a declaration of bankruptcy in early 2003, but the company recovered in the following year, and managed to strategize and resolved the financial problems (Milton, 2004). Nevertheless, the technological environment has impacted positively on the company’s business, through increasing business and repeat customer purchases. The company’s utilization of its technology is impressive, with the company offering a range of technological services to its customers, such as ...
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