5C analysis of Air Canada (5Cs of Air Canada)
This is a comprehensive 5C analysis of Air Canada. It examines the airline’s company profile, collaborators, customers, competitors, and context. The airline industry is very challenging and competitive where even small details matter when it comes to staying ahead of the competition. With a detailed 5C analysis, Air Canada can evaluate its current position, identify opportunities for improvement, and develop an effective strategy that can be implemented in the long term.
List of 5Cs of Air Canada with analysis
Air Canada: Company overview
Air Canada is the flag carrier of Canada. It is the largest airline in the country which offers direct service to six continents. It has over 400 aircrafts which are very fuel efficient and indeed most environmentally friendly in the world.
Air Canada is a founding member of the Star Alliance network. It flies to over 50 Canadian airports to address the demands in the domestic market. It also flies to over 45 airports in the USA. However, MacGregor (2022) reports that Air Canada has been criticised because of unprecedented reports of late, flight cancellations, and misplaced luggage.
Air Canada’s collaborators
Air Canada uses several partners and suppliers to run its operations. It buys over $12 billion worth of goods and services annually (Air Canada, 2022). Its Supplier Code of Conduct is a key component of its sustainable sourcing strategy which also guides potential suppliers on how to become a supplier.
Air Canada also works with many other airlines through codeshare partnership agreements. Aegean Airlines, Air China, Air India, Air New Zealand, Lufthansa, Singapore Airlines, Etihad Airways, and Virgin Australia are some of its key code share partners.
Air Canada’s customers
An analysis of customers looks at who a company’s customers are, and what they want. For Air Canada, over 50 million passengers fly with it every year. Customers are generally happy as evidenced from their rating of it as either good or excellent, though Air Canada receives a huge number of customer complaints every year (Salas, 2022).
Air Canada’s competitors
An analysis of the competitors will look at who a company’s competitors are and what they offer. It will also include an assessment of what the competitors’ strengths and weaknesses are. Competitors may be direct or indirect.
The major competitors of Air Canada in the domestic market are WestJet, Porter Airlines, Flair Airlines, Sunwing, and Air Transat. In addition, it also competes against many foreign airlines that fly to both Canadian and foreign destinations.
Air Canada’s climate/context
As a passenger airline, Air Canada faces several challenges and threats. For instance, weather is a key factor that can affect its operations and delay flights. In addition, it is faced with an increasingly competitive environment where costs and prices are not fixed.
Volatile political and economic environments may also reduce the demand for flights to some destinations. Similarly, Air Canada was fined and agreed to make settlement payments worth millions of dollars in the past.
Summary of the 5C analysis of Air Canada (5Cs of Air Canada)
The above analysis demonstrates that the company profile, collaborators, customers, competitors, and context impact significantly on the operations of Air Canada. It, therefore, should analyse these factors before developing a strategic plan for growth and expansion with a view to increasing profitability and market share.
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Last update: 02 September 2022
Air Canada (2022) Corporate profile, available at: https://www.aircanada.com/ca/en/aco/home/about/corporate-profile.html#/ (accessed 01 September 2022)
MacGregor, S. (2022) Air Canada announces major reduction in flights due to unprecedented travel chaos, available at: https://www.forbes.com/sites/sandramacgregor/2022/07/01/air-canada-announces-major-reduction-in-flights-due-to-unprecedented-travel-chaos/?sh=5e3e271468ca (accessed 01 September 2022)
Salas, E. (2022) Air Canada – statistics & facts, available at: https://www.statista.com/topics/4505/air-canada/#dossierKeyfigures (accessed 01 September 2022)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.