Easy Jet

It is important to examine Easyjet’s strategy due to the changing financial climate in the UK and Europe such as the 2008/9 recession and Brexit.

This report illustrates an in-depth look of easyJet and will also discuss an analytic research that was made to demonstrate aspects of the history of the airline, along with the marketing strategy and brand strategy used and implemented by the low-budget airline. The strengths, weaknesses, opportunities and threats, known as SWOT analysis, will also be illustrated along with the external environment better known as PEST analysis which consists of the political, environmental, social/cultural and technology factors of easyJet. In addition an analysis of the competitive market environment of easyJet will be shown, which includes an overview of easyJet’s main competitors and the nature of business in which they operate

The threat of new entry is high because there are no significant barriers of entry in the airline industry. For example, airplanes can be easily leased, defraying the large initial capital investment. Additionally, exit cost in the business is

With the BCG Matric analysis, we can argue that Easy Jet enjoys a viable competitive position because of its actual market growth. However, its prices have been compared with those of rival firms. This has clarified that Easy Jet emphasizes on being a low-cost carrier with no surplus in-flight services. Writers such as Quelch & Deshpande (2004, p. 71) argue that the Boston Consulting Group growth/share matrix has offered an opportunity to establish the market share of Easy Jet and the company's growth rate. In the context of the company's low cost market, it is clear that the market is still are still increasing. In addition, with the current fleet volume of 80 aircrafts, Easy Jet can serve 160 routes across Europe. Industry experts have associated such massive penetration with the rise in numbers of passengers and a relative rise in market share. Consequently, it is clear that the company has become a star. Nevertheless, Easy Jet must expand its market share for it to transform into a source of income after the decline of the market's growth rate. With respect to the company's Boston Consulting Group growth/share matrix analysis, we can claim that the cash flow of Easy Jet from operating activities have declined as well as the annual finances. Nevertheless, the acquiring firm's cash flow statement is the main area of focus (Butler &

The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B.

Now approximately 90% of all seats are sold over the Internet, making EasyJet one of Europe's biggest Internet retailers. This approach eliminates the distribution costs charged by the middlemen. (Cranfield School of Management, 2001)

The risk of entry into the airline industry by potential competitors is low due to the “liberalization of market access, a result of globalization. According to the IATA (International Air Transport Association), about 1,300 new airlines were established in the last 40 years,” (Cederholm, 2016). The cost structure of businesses in an industry is a determinant of rivalry. In the Airlines Industry, fixed costs are high, because before the organization can make any sales, they must invest in air crafts, fuel and service employees. These items come attached with hefty price tags. Industries that require such enormous amounts of start-up capital as predicted by many analysts

However, these days the opposition enlivened another distinctive business position the minimal effort aircrafts as Easy-Jet and Raynair. Those organisations position them self as ease carriers or better as cutting costs carriers. According to Williams (2014), their product method stops to the genuine product without worry about the increased product, where is the primary quality and weapon of British Airways. This demonstrates that they don't offer services at everything except only the ticket. For instance Easy-Jet's product technique closes at the normal level of five-product levels. There is no expanded product. There is no business situate on flights, no official parlor at air terminals, no free sustenance and beverages on flights, no amusement on flights, and much of the time Easy-Jet flies from airplane terminals too a long way from enormous downtown

| British Airways’ corporate and marketing strategies over the years have seen the brand shift to a privately owned premium airline service provider,

Furthermore, the contestability of the airline market is also determined by the extent to which incumbent firms benefit from the natural cost advantages of Economies of Scale. Established firms within the market can operate at/beyond the Minimum Efficient Scale (Besanko et al) thus giving them a substantial cost advantage over small entrants. These incumbents benefit from their reputable status within the

Major airlines like British Airways and KLM reported a 5.8% fall in the number of passengers (Chris Leadbeater, 2010). It was the European Low Fares Airline Association which includes Ryanair and easy jet which enjoyed a booming year and reported a 8.7% increase in passengers in 2009 (Chris Leadbeater, 2010). Ryanair alone experienced a 15% increase in the number of scheduled passengers, from 2008 to 2009, which shows that many people preferred Ryanair over other airlines during the recession (Ryanair annual report, 2009, pg4). Around 46% of Ryanair’s customers come from UK, almost a third of its passengers are aged between 25 to 34 and around 21% are property holders in other countries (Mintel, 2007). The airline mainly depends on repeat business as 40% of its customers fly 5 times a year (Mintel, 2007). This data will help us decide our population and data regarding customer satisfaction can be gathered from it.

Natural disasters are also events that are out of easyJets control. The volcanic eruption that occurred in April of 2010 affected nearly the whole of Europe in terms of aviation and flying. In particular it affected easyJet in unprecedented ways, it had to ground/delay flights over a period of about 2 weeks. This left many tourists stuck abroad with no way back to the UK. It is reported that the ash cloud cost easyJet around £65 million in compensation and loss of sales. This type of disaster is very rare and is unlikely to happen again. Should it re-occur though easyJet have developed a new system that could bypass such an ash cloud (Katherine Griffiths. 2010.)

A ‘Key objective is to drive demands, conversion and yields across Europe’ (reference) Easyjet managers will compare the amount of passengers who flew during this current year and compare it to the amount of passengers who travelled with them in previous years. If passenger’s numbers require escalation, the managers will evaluate their marketing strategies and improve them in order to increase the drive of demand. The managers will be necessitated to analyse other factors, which may affect passenger numbers such

When LCA companies implemented a price war, easyJet confronts a fierce competition. The most threatened competitor is Ryanair, the largest LCA in Europe offering more than 800 low fare routes all around Europe (Poulsen and Fowler, 2012). Meanwhile, British Airways (BA) also offers similar flights with free drinks in the UK and Europe. Besides, fastest train like Eurostar is the biggest threat and substitute of LCAs (Dunn, 2009). As for LCAs companies, stable suppliers of fuel are key to lower costs. The fluctuated fuel price will increase the cost of easyJet and erode the profit margin.

Remember when you are answering that easyjet are a budget airline and so their competitors are people like Ryan air - not Virgin...