Air Canada Case Study

AIR CANADA
Background
Saturation of domestic markets and the need by firms to diversify their markets have provided firms with the need to go international (MA sum, & Fernandez, 2008). Internationalization can be defined as the act by companies to explore international markets, although there has not been a clear definition of internationalization (Andersen 1997, p.28). Internationalization is a huge decision by firms and the wrong strategy can lead to ultimate fall of the organization. Internationalization allows firms and companies to own or control businesses and activities in several countries; a process that affects the whole organization making it more international (Dunning, 1993) and by going international, companies can gain competitive

The airline’s tagline is: The freedom to fly your own way; Go Far. It is the world 's ninth-largest passenger airline by fleet size, flying to over 179 destinations around the world and operation an average of more than 1,530 scheduled flights daily(air Canada). Air Canada is recognized as the Skytrax Best International Airline in North America, and was ranked as a 4 Star Airline by Skirted in 2013(Skytrax, 2013).
Air Canada targets upper middle and business men. The Airline industry is segmented by the services offered which includes the passenger freight services and cargo services. It is also segmented by customer size consisting of a very significant section of the people. Air Canada also generates revenue from its Air Canada Cargo division. Air Canada Cargo provides direct cargo services to over 150 Canadian, U.S. Trans border and international destinations and has sales representation in over 50 countries (CAPA, 2015).
Most of Air Canada’s operations are centralized thus making it easy to implement common policies and for easier co-ordination and control. Air Canada’s hub is also centralized in Toronto thus offering direct and stress-free connections to the rest of the world(Air

Political stability is vital for any business venture to flourish. Political instability affect the trade policy and thus hard for businesses to establish a base. However, Angola has experienced political stability for several years now. With democracy being exercised in the country, there are high chances of political stability to continue (ADB, 2010). In terms of labour laws, Angola has among the cheapest labour forces thus it is easier to establish a business where labour cost and labour laws are low (ADB, 2010). Another legal factor that could scare business away is the tax system. However, Angola tax system is quite friendly and offers tax redemption to foreign companies who are willing to invest in the country (Anglo Chamber of Commerce,