Swot Analysis Air Canada

The Air Canada case contains a problem in the structure of the company regarding how they are sourcing in their supply chain, managing the risk, and growing the company while maintaining their core competencies. Based off the overall information of the reading, Air Canada seems to be making the correct steps in the success of their business. If you look at page 20 of the reading, Air Canada holds a good majority in the domestic, international, and even transborder market shares.

The biggest issue with Air Canada is their need to always innovate to be the best airline that they can be and connect Canada to the world. Some of the major factors that play a part in Air Canada’s problem is that they are always in competition with any company that

They must remain in this type of environment if they insist on maintaining their core competencies and beating out their competitors time and time again. When looking at Air Canada through a SWOT analysis some major key points arise regarding strengths, weaknesses, opportunities, and threats. The strengths that Air Canada utilizes is the customer care unit while implementing the best IT system available. This makes it easier for customers to be better informed about the new services offered. The weaknesses of the company come from attempting to hire vendors who require little training and outsourcing most of their IT services which could result in a lack of efficiency of employees and also how those employees deal with customer complaints. Also the aspect of Air Canada being forced to deal with multiple vendors could slow down processes in the supply chain. For instance, if you were to outsource there are more steps which would take longer and makes it less cost efficient. The risks of the company are the uncertainty that the system could have a problem or malfunction. The potential of being hacked or displaying wrong information goes along with the problem of malfunctioning. This problem could potentially lose current and future customers . Since the system is

In order to sustain that market share, Air Canada has focused mainly on innovation and outsourcing their departments to various vendors. The effect of this was a slower reaction time to deal with problems that would arise. According to the Senior Director of IT Sourcing, “When you have a major incident (MI), a problem, something breaks, depending on how many vendors have a piece of it, it becomes very complicated to know what has broken. It could be the network, it could be an application server, it could be the application and sometimes that’s three or four vendors who need to be on the phone saying okay, my network looks good. Okay who’s the server person? okay , my server is up. Okay application person, what do you see? Or is it the person’s workstation?” This is viewed as a major issue when a competing Travel provider offers a discounted price on a certain route and Air Canada is attempting to match that offer. This would require instant contact between Marketing deciding if that price is worth matching. According to the director of Marketing and Customer Experience, this can either be done very quickly if it is done in house, or there would be multiple layers and additional steps to follow if this process was outsourced. Both scenarios restrict Air Canada from competing with other Travel companies and doesn’t allow them to fully sustain their core