A.case advice.AIR CANADA

A.case advice.AIR CANADA - AIR CANADA EXTERNAL FORCES 1...

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AIR CANADA EXTERNAL FORCES 1. ECONOMIC FORCE:part of ac’s diffuclties (ie profits harmed) are due to a “downturn in the economy” – ie it is likely that the weak economy meant fewer jobs/unemployment/lower spending capabilities – and so people were less likely to take air flight vacations and they would also be looking for cheaper transportion than air travel. (or look to cheaper airlines). 2. COMPETITIVE FORCE – how is competitions harming AC’s profits? West jet is a very strong competitor – it is a low fare airline – sp can attract travelers away from AC. In addition, Westjet is also a more efficiently managed airlines – “higher level of productivity and motivation among its staff”. “ non-union – seems to be a less troubled workforce. All in all, this kind of low cost efficient competitor can certainly harm AC. 3. SOCIETAL FORCE – Society/people were less inclined to take on air travel – post 9-11 and other issues like the SARs scare – consumer preferences – this drop hurt air Canada along with the entire air travel industry. 4. GLOBAL FORCE – an attack on the US/9-11 affected the airline industry/AC in Canada. Events that happen in different parts of the world increasingly can affect
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A.case advice.AIR CANADA - AIR CANADA EXTERNAL FORCES 1...

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