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Case Analysis: Air Canada Flying High Using Information Technology Case Solution & Answer

Case Analysis: Air Canada Flying High Using Information Technology Case Solution

            Afterwards, in 2000, the company raised a proposal or tender to be filled by IT suppliers to select one of them. However, the reason behind this was not that the company was not satisfied with the services of IBM, but that the company’s IT policy was not allowing it to renew the contract with IBM. Moreover, the company also mentioned in the beginning of the contract that the company would search new vendors before the renewal in pursuit of better quality and price.

            Furthermore, the company also realized that this time the company needs an IT vendor that has expertise in IT infrastructure as well as telecommunication. Since, the company was considering making its Telecom infrastructure more effective and costing efficient at the same time while going for the best IT solution.

            In addition, the company received many proposals from different suppliers. However, there were several months left in the expiry of the contract with IBM, but the company was following a proactive approach. Therefore, the company selected a critical team and took it back in-house to decide whether the company needs a single vendor or multiple vendors.

            Afterwards, in 2003, the company decided to pursue a multiple vendor strategy, while the company also decided to select a vendor that has expertise in dealing with large companies, which the company does not have to educate. Finally, in 2003, the company had chosen Operation SYS as its IT vendor. The company was expert in dealing with the IT requirements and related applications in big companies.

            Afterwards, the company selected several IT vendors to keep its system updated as per the customer need while ensuring cost effectiveness. However, continuing with a multiple outsourcing strategy bought more challenges. Therefore, the company decided to choose IBM as its IT partner to make integration among its multiple vendors and to keep track with the performance of new applications and software.

The main reason behind choosing IBM as a partner was that IBM worked for 7 years with Air Canada. Therefore, it was completely aware about the rules, regulations, and policies of the company. Conclusively, the company now has an effective and efficient IT infrastructure outsourced to several vendors but partnered with IBM.

1          Challenges for the company and Initiatives took by the company

            The company was pursuing continuous system improvement and innovation while at the same time the CIO of the company and other executive staff was facing numerous external challenges. The basic challenge that the company was facing, was the increasing challenge since; low cost competitors were competing on prices because low cost carriers were providing a bit lower quality service on lower prices as compared to Air Canada.

            In addition, the company was following differentiation strategy and its competitors were competing on prices, however, this was a big threat for the firm but on the other hand, the more deadly issue was that the company was offering superior quality differentiated services, while the competitors were trying to compete on low quality services.

            Moreover, the company had some IT related threats and challenges, which were disturbing the internal structure of the company. The company had numerous customers and therefore, handling data of such a large pool of customers was not easy. Afterwards, the company was also facing several challenges while going forward with its multiple vendor strategy.

            Finally, as a solution, the company decided to choose IBM as its IT partner to make integration among its multiple vendors and to keep track with the performance of new applications and software. The main reason behind choosing IBM as a partner was that IBM worked for 7 years with Air Canada. Therefore, it was completely aware about the rules, regulations, and policies of the company. Conclusively, the company now has an effective and efficient IT infrastructure outsourced to several vendors but partnered with IBM……………

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