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easyjet Essay

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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
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