Case study
Easyjet
1-In the 1990, easyjet says that the internet is not important for her business, and they denounced that the internet as something “for nerds”, and swore that it wouldn’t do anything for his business
In the 1998 the easyjet company as a low cost airline company were looking to undercut traditional carriers such as british airways, it need to create a lean operation to achieve this , the company decided to use a single sales channel that it was the phone but after the unexpected growth in sales they was obliged to start using the internet to serve his customer well , that it was a more efficient idea than building a new call center, that was in 1999 when easy jet start using internet for sales. The low cost
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4-Easyjet said the approach from NAS to use the EasyJet brand in the Gulf region had been made jointly with Dubai-based Abraaj Capital, a leading Middle East asset management and private equity group.
NAS is the largest operator of corporate jets in the Middle East and has already placed significant orders for Airbus executive jets to support private jet customers throughout the region and also on routes to Europe.
EasyJet said that NAS had applied for a licence to operate domestic scheduled flights initially in Saudi Arabia and later in the Gulf region, where to date low cost carriers had only had a minimal presence. The domestic market remains highly regulated and is dominated by the state-owned Saudi Arabian Airlines.
The small number of low cost airline start-ups in the Middle East include Air Arabia, based in Sharjah in the United Arab Emirates, and Kuwait’s Jazeera Airways.
EasyJet said that it was not planning to invest any equity or cash in the Saudi venture. It would only go ahead with such a move, if it delivered “significant shareholder value. A deal also depended on the progress made by NAS in its application for an operating licence.
A decision on the deal was unlikely to be made before early 2007.
“We would provide our brand and a little assistance in getting their airline set up,” said an EasyJet spokesman. The group would need to assess the potential risk to its brandname including safety and security risks.
EasyJet, which was started in 1995
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).
You have just been hired by Rob Griffin to help him better understand the effectiveness of Air France’s online sponsored search efforts. He has requested answers to the following questions:
With its chosen integration business strategy, one of the challenges that JetBlue is facing not being able to create value anymore for the
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.
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.
EasyJet began in 1995 when Stelios Haji-Ioannou had the idea to create a customer-focused brand that would one day revolutionise the concept of stepping onto an aircraft. EasyJet leased it’d first aircraft in 1996 and two years later in 1998 they started easyjet.com which allowed passengers to book flights online. 2002 was a milestone for EasyJet as they bought low-cost airline Go (originally created by British Airways) to create Europe’s no. 1 air transport network. In 2013 60 million passengers flew with Easyjet and they made it into the FTSE 100. In 2014 Easyjet announced a new deal to buy the new generation A320 neo aircraft which will start in 2017. easyJet Airline. (2016) History. [Online] [28th October 2016]
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 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.
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 first successful low-cost carrier was Pacific Southwest Airlines in the United States, which pioneered the concept when their first flight took place on May 6, 1949. However, Southwest Airlines that began service in 1971 and has been profitable every year since 1973. With the advent of aviation deregulation, the model spread to Europe as well, the most notable successes being Ireland 's Ryanair, which began low-fares operations in 1991, and easyJet, formed in 1995. Low cost carriers developed in Asia and Oceania from 2000 led by operators such as Malaysia 's AirAsia, and Australia 's Virgin Blue. The low-cost carrier model is applicable worldwide, although deregulated markets are most suited for its rapid spread. In 2006, new low-cost carriers were announced in Saudi Arabia and Mexico.
II.3 Competitive Advantages Their main competitors are carriers including easyJet, BMI baby, FlyBe and ThomsonFly all of who try to attract potential customers by emphasising their low cost tickets. This makes the competition in this market segment fierce as in order to offer the lowest fares, costs must also be kept to a minimum.
One of the world’s top best airlines, Emirates is the largest as it is in middle
Competing through alliances in the airline industry: The AIR FRANCE- KLM/DELTA AIR LINES JOINT VENTURE
Accordingly, the corporation can capitalize either to buy over any of the existing airways or transfer a section of its fleet to the budget jetliners. In this context, the rear one is preferable to distribute the available resources. Ultimately, it must manipulate and screen the execution of the scheme.