The Low-cost Orange Flying Machine: The Case of easyJet Introduction The colour orange is increasingly becoming synonymous with the firm easyJet as it has become one of the world’s most profitable low-cost airlines (Alamdari and Fagan‚ 2005). This paper examines the basis of their success and argues firstly‚ that easyJet from its inception essentially adopted and stayed with the original low-cost model that was pioneered by Southwest airlines in the USA. Moreover‚ this is a model that has served
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competitive. One of them is to give the price benefit to attract a large number of customers. Low cost fares can be a good strategy to attract new customers. During the initial years of the century this industry has already faced grave economic problems. Factors like economic downturn and rising fuel prices negatively impacted this industry and its profitability. Recession has also weakened it further. The low cost carriers or LCCs have intensified the competition and no airline can afford to remain competitive
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EasyJet has a unique geographical location because it was born in England. Britain is isolated on geographical conditions‚ across the sea with other countries in the European continents‚ so the aircraft is the most convenient mode of transportation. ‚ but lacking of traditional service. It is more suitable for students and ordinary income people. The development prospects of low-cost airline‚ like easyjet‚ are promising‚ the company is exploring in the dark‚ becoming a good business success stories
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Introduction We as financial consultants decided to pick 3 law cost airlines as a result a number of people flying more and more today and this industry will grow. This industry should be good for investment. Profitability Total revenue in 2011 was £3.452 million and grew by 16.8% in compare to 2010. This was achieved despite a significant increase in passenger taxes and economic instability around the world. This is a very healthy figure which might grow within the next years as a result of more
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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 ............................................................................................
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brand and the way the brand owner defines what the brand stands for overlap as much as possible. EasyJet derives the most from the perceived quality. “The perceived quality refers to; A customer’ opinion of a product’ value to him or her. It may have little or nothing to do with the product’s market price and depends on the product’s availability to satisfy his or her needs or requirements”1 Easyjet is really focusing on this aspect because they are expanding and they are already flying to 129 destinations
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A Cost Leadership Strategy is based on the concept that you can produce and market a good quality product or service at a lower cost than your competitors. These low costs should translate to profit margins that are higher than the industry average. Some of the conditions that should exist to support a cost leadership strategy include an on-going availability of operating capital‚ good process engineering skills‚ close management of labor‚ products designed for ease of manufacturing and low cost distribution
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Cost leadership Strategy Strategy used by businesses to create a low cost of operation within their niche. The use of this strategy is primarily to gain an advantage over competitors by reducing operation costs below that of others in the same industry. For example‚ The Swedish furniture retailer Ikea revolutionized the furniture industry by offering cheap but stylish furniture. Ikea is able to keep its prices low by sourcing its products in low-wage countries and by offering a very basic level
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operating costs in 2010‚ Easyjet has achieved a remarkable performance compare to 2009. It has reinforced its position in short-haul travel aviation increasing its market share from 6.5% to 7.6%. Additionally‚ its total revenue per seat grew by 5.1&capacity measured in seat flown. Easyjet also managed to lower its underlying pre-tax loss increasing its cash-flow by million to million Table of Content Introduction I/ Easy Jet : General Overview II/ Comparison A/ Low costs airlines
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“perform different activities”. Cost leadership strategy Tiger airways has chosen the former it exploiting a cott leadership strategy. It has an integrated set of actions taken to produce services with features that are acceptable to customer at the lowest cost relative to that of competitors. Tiger’s costs structure foolows the shirt-haul low-cost model of Ryanair. It targets a broad customer segment and concentrates on finding ways to lower its costs relative to competitors by constantly
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