Executive Summary:
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
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The prices of these seats however tend to change in accordance with the days that the bookings of these flights are made available till the date of departure (Koenigsberg, Muller and Vicassim, 2008). All bookings for easyJet are made straight from either telephones or the internet; this made it very easy to incorporate the web into its central booking system. By achieving this, there were no possible channel conflicts with other intermediaries, for example with travel agents Easyjet’s website illustrates their pricing policy as being “based on supply and demand, and prices usually increase as seats are sold on every flight. Basically the sooner a person books, the cheaper the flight ticket would be”. The web also states that the low cost scheme of easyJet is not tickets, no ties to other networks, no travel agents and no on-flight meals. (easyJet plc., 2010). A pin code is also given for each customer’s booking that is done on the website which is given to travellers upon arrival at the airport.
Brand Strategy:
To gain a competitive advantage, most companies tend to implement a brand strategy. What makes easyJet stand out amongst its competitors is their image of a low-budget airline and no-frills services; this brand strategy is simple but strong. EasyJets’ whole company is recognised by their unique orange logo, this color also forms part of the uniform worn by their staff, which in turn is a strong recognised tool by the consumers.
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.
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 &
Many larger organizations have already achieved a mature stage in their organizational lifecycles and some are even in decline as their business models fail to keep pace with changes in an increasingly globalized marketplace. One larger organization that continues to grow using its original business model, though, is easyJet, which is already one of the largest low-fare air carriers in Europe and current signs indicate that the company will continue to grow its market in the future. To determine how easyJet has succeeded where others have failed, this paper examines the company's efforts in meeting the challenges with its initial launch, the company's early growth and the lessons learned from these experiences, as well as the acquisitions and mergers that have helped the company achieve its organizational goals. An examination of easyJet's organizational maturation status and how the company has differentiated its services is followed by a summary of the research and important findings in the conclusion.
In 2002-2003 EasyJet in the pursuit of reinforce and change their market conditions acquire “Go”, a low-cost airline who helped to reinforce a cultural and commercial challenge: Integrate Airbus into EasyJet network (Goodson 2005). The company acknowledge that interdependencies
The essay will firstly introduce the organisation easyJet. Secondly the essay will explain about how easyJet uses its operation strategies and its competitive priorities. Finally the essay will discuss the most important operation decision and explain it further in detail. easyJet is a well known low-cost airline which operates in several European countries and has been founded by serial entrepreneur Sir Stelios Haji-Ioannou in 1995. easyJet undertook intensive research of a United States owned low-cost airline ‘Southwest Airline’. Most of the concepts for easyJet were adopted from Southwest airline; however easyJet added its own touch which reduced operating costs even further. EasyJet was strategically located at London's Luton airport.
The company mostly focuses on direct selling as a key part of controlling cost. It has the company’s URL painted on both sides of the Jets in its trademark orange. Easy Jet bases its idea on the principle that the determining factor in air transport is price elasticity. Initially, airlines operated on the assumption that the number of passengers grows in line with the economy and cutting of conveyance fees will result to reduced revenue. Easy Jet operates on 125 routes from 39 European airports. Its main airports are Luton, Liverpool, Geneva, and Amsterdam and were operating 72 aircrafts by November 2003 (Easy Jet Airline Company).
| Competition from low cost airlinesGovernment regulationsPrice volatility in petroleum marketIncreasing security and safety concerns
The organizational chart of the company is relatively flat and the executive management team plays a large role in the company. There are few layers between this team and the frontline employees and the executives often communicate through technology assisted mediums so that they can reach the large employee base. The executive management team is an important stakeholder and sets the vision for the company's
With the advent of the Internet as a convenient method for the average consumer to search for the lowest airfare and complete the transaction without an intermediary, buyer power has increased as a significant industry force. This trend coupled with the lack of differentiation by the consumer between air carriers has commoditized the industry and made price the most important factor impacting buyer behavior.
The author believes that the government and European taxes are the main political factors that can affect the future of the company. Airport taxes are levied as a fixed tax on the sale of airline seats in most of the countries where easyJet operates. The UK government had established one of the highest taxes in Europe- Air Passenger Duty (APD). In 2008, the APD tax is charged at £10-£20 for flights within Europe and at £40-£80 for long-haul flights. (Osborne, 2008). At that time the company takes out an advertisement in the UK national newspaper for making the APD tax greener and free of subsidies to airlines with transfer passengers. EasyJet takes action to replace the APD tax with a flight base tax. This means that the passengers that fly in the newest aircraft cause less pollution and they should not pay the same money as somebody using an old aircraft.
As the title suggests, warrants are issued by companies as an alternative way to raise funds or in combination with common stock during an Initial Public Offer (IPO). It allows high growth companies to raise much needed funds if they experience cash flow difficulties during this period of the company’s lifecycle. In addition to issuing common stock to raise funds, companies who issue warrants can attract more investors and provide more benefits to the investor and the company itself.
EasyJet EasyJet has become the European leader in a no frills frenzy for low cost, cheap air travel. This market however has since the mid nineties gone from strength to strength and we have witnessed the arrival of a number of low cost airline companies which cater for the no frills approach. In Europe the top two competitors in this market are EasyJet and Ryan Air which serve their customers from London Luton and Dublin respectively. They offer a differentiated product compared with the major traditional airlines and the key to their success has been
At the initial stage, Virgin Australia Airline only offered a sole class both in domestic airlines and short hauls international airlines. Afterwards, Virgin Australia began to operate the long-hauls international airlines and developed more classes. At 2007, Virgin Australia planned to add long-hauls international airlines to the original product line, and launched a premium economy class to both short and long hauls international airlines in 2008. Until now, the product line of Virgin Australia’s international airlines becoming more diversified. For short-hauls international airlines, the jet aircrafts of Virgin Australia augmented a business class service. Some aircrafts also aggrandized premium economy class, this class only a little bit expensive than economy class. However, premium economy class can make more pleasant experience for all customers, such as the seat pith in premium economy class is wider than economy class. According to the data published by Virgin Australia airline, the seat pith of premium economy class is more than 34 inches, but the seat pith of economy class only has 31 inches. Moreover, same with the short hauls international flight, Virgin Australia also expanded business class and premium economy class in long hauls international airlines. However, the different is the long hauls international airlines have more humanized services. It added certain new items to original product line. For example, in business class, the seats are
The objective of this report is to study the external and internal environment of Indigo airlines. Planning, business and marketing strategies are also analyzed. This analysis has helped in putting forth recommendations that could help improve and sustain Indigo in the aviation industry.
Within the category of services, it applies to different types of customers such as family, solo travellers and business travellers, the key focus of this report is on the upper-class service for business travellers and how it influences business travellers to purchase a flight package from them instead of using their competitors Jet airways, British Airways or Emirates. We can discover the decision-making process and how it operates but it’s important to understand the marketing strategy behind the company that makes it very successful and attracts more business travellers to fly with them.