Company Strategy

CRITIQUE QUESTIONS:

1.

Porter focuses on offering differentiated, high quality, more comfortable and time efficient customer service in every aspect. Meanwhile, the supplier, Bombardier Q400 turboprop, was ideal for Porter’s business, since it fits short-haul flights and smaller airfields, lowers maintenance costs even with high utilization, and reduces airport fees.

From the perception of Bombardier, one of the issues that Porter may raise is about the production level of the supplier. If Porter chooses to serve more clients, tries to expand its long-distance airlines business and increases flight scheduling, Bombardier may lack of production capability and the know-how of technology, because that Bombardier is good at short distance flights and sudden increase of order would result in problem in producing process.

Another issue that may occur is that Porter may face the increasing fixed cost. By saying this, I mean that Porter would ask Bombardier to innovate in order to make customers have a better ‘Porter Experience’. However, any innovation on hardware would cost both Bombardier and Porter huge amount of money. Under current situation, Porter already worried about its high fixed cost, so Porter should pay more attention on any change of cost.

2.

Reviewing the Porter case, the company faces a competitive market and owns comparable advantages. The current environment of airline industry is that monopoly has already existed. Without enough money, market share, and experienced management team, other airline companies cannot survive in the industry.

While Porter, targeting high-yield business travellers and short-haul flight market, developed differentiate business model, including the ownership of Billy Bishop Airport, and customer-oriented service, expert team, and cost-saving operation system. Unlike Air Canada, which has a long history of crushing rivals, Porter as an emerging qualified airline company, is seeking opportunities to change in order...