Swoop Airlines core strategy
Swoop Airlines core strategy is a low-cost long-haul business model. The company brands itself as a low-cost airline. According to (2018) reports by the company, its prices will be about 40 percent less than the standard prices (WestJet, 2018). The low-cost long-haul model could be a driver of the company’s financial performance. As major airlines try to embrace efforts that will enable them to offer cheap flights as is the trends in the market, SWOOP’s approach of branding itself as a low-cost carrier strengthens its presence in the market as an affordable flight. As a new airline, Swoop’s strategy in establishing a footing in the market is operating short flights connecting Canadian cities. Targeting small cities and airports will assist in developing the company’s brand equity, and customers will be familiar with its operations in different routes.
Swoop’s low costs allow the company to acquire an increased level of market share. Consumers prefer the carrier as it is affordable to others in the industry. Also, its low costs result in additional traffic volume from long-term customers seeking cheap flights. The Engel, Kollet, Blackwell (EKB) Model of determining consumer behaviour stipulates that consumers follow a step by step process while making a purchasing decision (Briñol et al. 2015). Among the most critical steps is the first that entails consumers absorb the marketing material they have access to regarding a brand and its products. Consumers will proceed to make a purchase after a period of thought and rational insight. Swoop’s marketing strategy offers consumers with information regarding its brand’s low costs, which enhances the consumers’ consideration to fly with the carrier. However, a key weakness of Swoop’s low-cost business model is that it results in a minimal contribution gap, stagnating the company’s growth. Other airlines recording similar traffic volume collect higher revenues.
References
Briñol, P., Rucker, D. D., & Petty, R. E. (2015). Naïve theories about persuasion: implications for information processing and consumer attitude change. International Journal of Advertising, 34(1), 85-106.
WestJet. (2018). 2018 Annual Report. Retrieved from Westjet: https://www.westjet.com/assets/wj-web/documents/en/investorMedia/WestJet-2018-Annual-Report.pdf