Easy Jet

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BUS6A2 - BUSINESS STRATEGY

EasyJet Business Strategy Overview

 
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 Dogan
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Executive Summary

This report will overview the industry EasyJet operates in, analyse its structure, macro environment, strategic group as well as the major strategic issues, business strategy and how they sustain competitive advantage. This analysis will involve the status of the company in relation to the status of the overall business. EasyJet Airline Company Limited is the largest airline of the United Kingdom and it is based in London Luton Airport. They were founded in 1995 and currently have a fleet size of 190 serving 134 destinations. They had 8446 employees in 2012 and revenues of 3,854 billion pounds and a net income of 255 billion which are both in the rise from the previous year (EasyJet 2012). Their slogans include "Where can we take you?", "Come on, let's fly!", "The web's favourite airline" and "Europe by EasyJet". The macro environment of the European low fare airline industry is influenced by the liberalisation efforts of the European Union aimed at improving competition, brought in via a number of the pan-European legislative measures (Sørensen 2005). Increase in the utilization of videoconferencing as a substitute for business travel is another macro environmental factor that has impacted the low fare airline industry. Third factor is the internet that has decreased the distribution costs for airlines and has increased transparency by allowing consumers to find

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cheapest possible prices themselves within seconds, eliminating the need of travel agencies. This is of further advantage to low fare airlines in today’s economical environment where consumers are even more inclined towards reduced prices than towards comfort (Sørensen 2005). EasyJet follows the business strategy of the American company Southwest Airlines which includes the minimization of operational costs via shortened turnaround times, charging for services assumed “extras” and excessive utilization of airplanes (Ottink 2004). Their employment strategy initially was to keep union relations at minimum but recently they have adopted a strategy to embrace unions more (Bamber 2009). Differently from their biggest rival Ryanair, EasyJet doesn’t fly to secondary airports to reduce costs further and somehow places itself in the same location with the more established higher cost airline companies, at least physically. It also allows them to claim that “300 million people live within a one hour drive of an EasyJet carrier” (EasyJet 2013).

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Table of Contents Executive Summary .......................................................................................................... 2 1. 2. 3. 3.1. Introduction ............................................................................................................. 6 European Airline Industry Overview ........................................................................ 7 Macro Environmental Analysis ................................................................................ 8 PESTEL Analysis................................................................................................. 8 Political .......................................................................................................... 8 Economical.................................................................................................... 9 Social ............................................................................................................ 9 Technological .............................................................................................. 10 Environmental and...
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