Executive summary
EasyJet is an airline company operating in a low-cost airline market, which has gained in popularity over the past few years. It has come to EasyJet’s attention that a number of investors are reconsidering an investment in the company. This report should be used as a tool that might help potential investors decide as to why invest in Easy Jet instead of in a competing firm. EasyJet believes in a very high market potential as the industry for low-cost carriers has been rapidly growing with EasyJet being a part of it. The report examines the current situation in the market, looks at a number of UK/European carriers that operate the market, as well as thoroughly explains factors that affect the industry.
Contents
Coursework Header Sheet 1
1. Introduction 4
2. Findings 4
2.1 Market structure 4
2.2 Level of demand and the influence of elasticity 4
2.3 Market segmentation 4
2.4 Market regulations 5
2.5 Easy Jet’s condition 5
2.5.1 Overview 5
2.5.2 Financial ratio analysis 6
2.5.3 Competition 6
2.5.4 Macroeconomic factors 6
3. Conclusions 7
4. Reference list 7
5. Appendix 7
1. Introduction
The purpose of this report is to grasp the overview of the airline industry and the UK based on the current condition of Easy Jet, as well as its competitors including Ryanair. Although Ryanair is not an UK based company, a significant number of its flights come from the UK and it is also a major competitor of Easy Jet in
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
Ryanair was established in the year 1985 by the RYAN family and has grown from a small airline flying a short hop from Waterford to London, into one of the Europe’s largest carriers. The company expanded and within 4 years it had 350 employees, 14 aircraft, and carried 600,000 passengers a year. It is currently serving to 26 European Countries with 148 destinations. It operates on 794 different routes daily serving by more than 1050 flights in a day. It has totally 169 aircrafts running for different routes with 5986number of employees working in it However, Ryanair’s costs rose drastically and it recorded losses of £20 Million sover four years despite its growth. Although consumers were continuing to fly Ryanair
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.
This is an analysis of the Airline Industry in Europe. The paper will cover the current market situation, including financials and market volume. Following this will be a Five Forces analysis on the factors that affect industry competition. The paper will conclude with key insights into the profitability of the industry and a SWOT analysis of one of the industry’s best performers and what rivals and possible future entrants can learn from their success.
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’s mission statement is to provide customers with a safe, good value point-to-point air services. To ensure consistent, reliable product and fares, appealing to leisure and business markets on a range of European Routes. Evidently, Easy Jet is in mass transport business. It focuses on leisure and business travellers offering them point to point air transport with safe, good value. Easy Jet as at 30 September 2009 had a staff of 8,000 people throughout Europe (Easy Jet Airline Company).
Flight Centre describes itself as a global discount flight specialist. Taking into consideration the relative size of the Australian and international operations as well as the availability of information on global environment and competitive factors, for this analysis, it is more appropriate to consider the Flight Centre’s industry environment as “The Australian international and domestic airline
Launched just 8 years ago, today, the Jetstar Group consists of a network of value-based air carriers that deliver high quality air passenger services for budget-minded travelers across Australia, New Zealand and the Asia Pacific region. Beginning with just 400 employees, the company currently employs more than 7,000 people and carries about 20 million passengers a year. To gain some insights into how the Jetstar Group achieved this impressive growth in such a short amount of time, this paper provides a review of the relevant literature concerning the air passenger industry in general and the business strategy used by the Jetstar Group in particular. A summary of the research and recommendations for this company are provided in the paper's conclusion.
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
We will see how Ryanair was successful as world’s one of the most favoured low-fare airline and how did it apply each of this mix by putting in the
Air has become the most preferred method of transportation for many people around the world and more travelers are looking for affordable ways to travel between destinations. Consequently, the increase in customer’s demand for cheaper fares has created an excellent business opportunity for low cost airlines to emerge. Low cost carriers have been successful satisfying customer’s demand for cheaper fares and reducing labor cost. “A high quality low-price entry strategy may seem very attractive at first glance. Obviously, an airline, or any startup firm for that matter, is likely to win a market if it can indeed provide a better product for a