easyJet
Business Model Analysis
BMAN72801
EasyJet’s Business Model Analysis
Table of Contents
Executive Summary................................................................................................................................. 1
1. The Business Model of EasyJet ........................................................................................................... 2
1.1 Theory ........................................................................................................................................... 2
1.2 Easyjet’s Business Development ................................................................................................... 2
1.3 EasyJet’s Current Business
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Easyjet’s critical success factor is built around its leading market position in European convenient airports, low fares, and exceptional customer orientated services. However, the successful growth of EasyJet has brought it into direct competition with Legacy Carriers and similar Low Cost Airlines.
This Report has been divided into three sections, the first section analyses the business model using the four-box framework: Customer Value Proposition, Profit Formula, Key resources and Key processes. Easyjet’s customer value proposition is based on providing low fares with customer orientated services using key resources and processes such as standardized fleets and online booking systems to maintain its cost structure which is a crucial component of its profit formula. Together with this, to maximise revenue, a number of methods such as sophisticated yield management techniques are in place.
The second section analyses the dependencies and constraints of the business model. Easyjet’s business continuity to an extent depends on IT systems, Processes at the London Luton Airport and
Markets where customers value low price and quality at the same time. Macroeconomic activities outside its control such as industry consolidation, weakened consumer confidence, inflationary pressure, competition, regulatory intervention, airport charges, and the rising cost of fuel are the constraints that disrupt the viability of their business model.
The third
* Choose two companies from the same industry that have been deemed successful by the standards of that industry. Analyze each of the company’s business models. Next, evaluate the characteristics of
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a business continuity plan starting with a risk analysis, business impact analysis, and alignment of critical
(u) “Escrow Amount” means $300,000 delivered in accordance with section 2.2(c), together with all interest earned thereon.
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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.
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2. The London based Airline could have verified their passenger list and should have identified Prof. McPherson as a Gold card member and a loyal customer and should have taken any one of these actions based on the situation:
Through defining both company the write of this report will define their business and synergies in detail. This business report is consists of five chapters in total. Chapter one will have case study background, statement of the problem, research questions ans aim and objectives of the case. Whereas, chapter tow will have detailed description of the situation.
with a number of strategic issues facing a capital-intensive, mature industry. Their product costing system was
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The new group will combine the two companies in the UK and Spain and will enhance their presence in the international long haul markets while retaining the individual brands and current positions of each airline. British Airways and Iberia hope their new company International Airlines Group, International Airlines Group, will position the pair for further consolidation in the global airline sector as it emerges from a prolonged industry downturn and hope to compete with multinational rivals Air-France-KLM and Lufthansa.