Essay about Easyjet- Principles of Operations Management

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.

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.

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.

easyJet's strong position in the key aviation markets of Europe supports the company in delivering

easyJet has always bought brand new aircrafts which are believed more reliable and need much less maintenance. Consequently, it allows high utilization, minimising the cost .per hour flown cheaper than using older ones. (Stellios Harji Ioannou, 2002)

EasyJet’s business model aims at using their cost advantage and leading network positions in strong markets to convey point to point cheap fares and operational efficiency. It provides friendly services to customers and delivers market leading returns to shareholders, by sustaining a dominant European network at primary airports, with the main objective of making travel easy and affordable for customers. Despite the fact that, low priced airline model has been really favoured in recent years, there are still key issues identified with EasyJet’s business model which are; it’s cost base, limitation of airports and oil prices.

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).

Easyjet is the only airline that currently offers direct flights from London Gatwick Airport (LGW) to Munich Airport (MUC). However, you can also fly with Vueling, Aer Lingus, or Norwegian Air International if you don't mind stopping in Barcelona (BCN), Dublin (DUB), or Oslo (OSL). Having trouble deciding on flights? Try setting up a price alert with Skyscanner's search tools so you never miss a great travel deal!

These are some of the strategies that “traditional” airlines use to eliminate the unnecessary costs and “frills”.

For example, Ryanair achieves significant cost savings by utilising landing slots at less attractive secondary airports. On many routes, this strategy avoids direct competition with the traditional carriers, as the target traffic is different. Easyjet has another business model. While generating a similar traffic stimulation effect as Ryanair, the carrier appears more focused on existing O&D markets and business traffic. Flying out of mainline airports means a higher cost base, but also better yields compared with Ryanair.

This Report has been divided into three sections, the first section analyses the business model using

The four cost components of the airline industry – fuel, landing fees, aircraft leasing and taxes - has made operating Lucky Air in a productive manner a constant challenge. Even though the company has a high competitive advantage being linked to Hainan Airlines, it still needed to upgrade its business strategy on a regular basis to ensure maintaining the lead they had over the other airlines. The company like all its counterparts face a myriad of restraints including heavily regulated governmental laws, limitation to price reduction, a low potential for rapid expansion due to government restrictions and heavy taxes.

The primary purpose of this report is to demonstrate the decision-making process for the chosen aviation company Virgin Atlantic Airline owned by Sir Richard Branson, which was established in 1984 and how they influence their customers to purchase their products and use their services. Virgin Atlantic offers many services such as

The aim of this report is to carry out a strategic analysis of Ryanair. This will involve investigating the organisation’s external environment, to identify opportunities and threats it might face, and its strategic capability, to isolate key strengths and any weaknesses that need dealing with. Finally, a SWOT analysis will be carried out to assess the extent to which Ryanair’s strategies are suitable to what is happening in its task environment.