Easyjet Competitive Analysis

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As mentioned before, Europe has around three thousand short-haul airlines meaning that the competition of easyJet can be very wide. Although, the main threat in terms of competition for easyJet is the low-cost Irish company named Ryanair. This company bases its competitive strategy in “cost leadership” approach (supply same service at lower cost) and is double the size of easyJet in terms of profit. It covers the main destinations of Europe offering around 27 different countries and main cities in every country. From 2011 to 2012 Ryanair had an increase in profit after tax of 25% leading to a new record of €503 million. On the other hand, easyJet in 2012 got €255 million of profit after tax (half of Ryanair`s profit). Another significant competitor for easyJet is the German company Air Berlin; this is the second biggest airline in Germany and the number six in Europe. It covers 25 countries in Europe with its main cities and also 23 German cities. Air Berlin offers destinations outside Europe as well and is part of the Oneworld group since 2012. In order to achieve an advantage against these strong competitors easyJet has communicated their strategy in one of the last annual reports: * Safe and sustainable

“We will never compromise our commitment to safety, which is always the first priority for all our people, and we continually strive to improve our sustainability” * Focus on customer

“We are focusing on improving our routes, slots and bases to build on our leading presence across Europe.”

* Operational Excellence

“We focus on maintaining a strong operation that delivers for our customers”

* Where people make the difference

“We are committed to ensuring high employee engagement levels across the business.”

* Financial discipline

“We are committed to improving shareholder returns whilst remaining prudently financed with a strong, liquid balance sheet.

Also nowadays, every company has to be concerned about environment in...
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