Questions
1. What market segment does WestJet compete in? Name an order qualifier and order winner for this market.
2. What competitive priority does WestJet have?
3. What were the advantages of each of the initial principles used by WestJet in 1996 to reduce its operating costs?
WestJet is a fast-growing Canadian discount airline headquartered in Calgary. It started in 1996 with three used airplanes targeting short trips in Western Canada (between Calgary, Edmonton, Kelowna, Winnipeg, and Vancouver). Clive Beddoe, one of the founders of WestJet, got the idea for WrestJet after heaving to pay exorbitant fares to Air Canada for hi s frequent flights between Calgary (his hometown) and Edmonton and Vancouver, where he owned plastic manufacturing plants. According to Beddoe, “the key to expanding the market and luring masses of people who don’t travel and those who drive is to charge the bargain-basement fares,” He called this market “visiting friends and relatives” market. In order to be able to offer low prices, WestJet needed to run low-cost operations. WestJet studied successful discourt airlines in the United States such as Southwest Airlines, and copied most of their operations principles.