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. …show more content…
When it comes to providing low cost there are many different strategies easyJet use which help lower its expenses. These strategies are e.g. using the internet for online booking, which reduces distribution costs, it makes an effort to utilise as many aircrafts as possible and making sure the aircrafts are full as possible and flying as much as possible. Another strategy is ticketless travel which reduces the cost printing and other cost related to it. The organisation also reduces cost by not offering free meal during the flight, applying paperless operations as most of their paper work is done online e.g. filing of paper based customer information does not have to be stored in secure places, using economies of scale to lower expenses e.g. buying aircraft , fuel and food all in bulk. Efficient use of airports making sure enough planes are turning over customers, also if the aircrafts are in the hangers and not in service they are still paying the fee to lease the space from the airport authorities. And another good strategy is having few levels of management where they do not have to pay high salary to highly skilled staff.
Capacity and forecasting is important operation decisions for easyJet as this creates and identifies activities within and outside the business to gain its greatest profitability .This approach allows easyJet to develop a cost per seat model comparison with competitor airlines. Seats are sold accordingly. Seat prices
WestJet airlines was founded in 1996 by Clive Beddoe, a successful Albertan entrepreneur who was desperate to find a solution to the rising costs of business travel expenses (WestJet, n.d.a). Beddoe combined a small group of Canadian business savvy investors with a regional airline President and together they sought the experience of successful industry leader David Neeleman, founder of Morris Air and developer of the One Skies passenger reservation system (Pederson, 2001). Often referred to as the Southwest Plan, WestJet’s original business model was simple; offer passengers a superior experience at a price that was comparable to driving or taking the bus. This was easily accomplished by operating one type of aircraft, removing excess frills, hiring employees whose personality fit a specific type, and by developing a company culture that focused on safety and taking care of the guests (WestJet, n.d.a.).
Some of the economical factors that may affect easyJet consist of an increase in fuel costs, other environmental factors that contribute to the economy such as natural disasters would result in easyJet not being able to operate for a certain period of time. Another factor that can have an effect on easyJet is the recession, research has indicated that this recession is likely to last longer than expected, which results in less business travellers travelling due to an attempt to decrease the amount of spending. Globalisation may be seen as another factor, as it continues to enhance air traffic in the long-term. (Geiger et al., n.d.).
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.
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.
In modern society, IT (information technology) governance plays an important role in business development. Therefore a good IT organization is which match all the business need and also performance well to get lead in the industry. This report will analyze four sections related to WestJet Airlines case. First of all, the five specific areas in IT governance will be considered. Second, AS8015 model for IT governance will be defined, and a strong example will be discussed. The third part is about risk identification and control for WestJet Airlines’ IT operations. The last section will discuss how Smith manage the transformation propose.
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 &
This Report has been divided into three sections, the first section analyses the business model using
IntroductionThis report has been written in order to provide an environmental and competitive analysis of the low-cost airline industry sector from the position of Easyjet. It will give a brief history into Easyjet and the low-cost airline industry. It will analyse the internal strengths and weaknesses as well as the external threats and opportunities. Competitors will be analysed through the use of porters 5 forces model. Recommendations will be made for easyJet's marketing strategies for the next three years.
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!
Table of ContentExecutive Summary1I. Introduction2II. Main Body1. History of British Airways22. Current strategic situation….42.1 Internal analysis42.2 External Analysis52.3 SWOT82.4. Current strategy93. Potential Strategic options124. Recommended strategic direction with rationale164.2 Strategy Evaluation175. Identification of critical success factors186. Performance measurement criteria197. Conclusion218. Bilbliography249. References24Executive SummaryThe main aim of this report is to undertake a review and analysis of British Airways. It is UK's leading airlines both at international and domestic level, with its operations spread over 300 destinations across the world. The report starts with a brief description of the company. Then the
The airline business is an industry that is competitive and unique, focussing on consumer choice and the responsiveness of airlines to changes in the external business environment. For any airline, this environment can be very complex as it is ‘hard for them to fully understand and impossible for them to fully control’ (The Times, n.d. p1). Virgin Atlantic is an international airline that is based in the UK. It was started by the entrepreneur Richard Branson in 1982 and now flies to 30 destinations around the world (Virgin Atlantic Airways Ltd, 2011). By looking at
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.
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
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 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.