Work Related Learning.
Company: Jet2.com Airline
This report will be analysing, aiming to identify the main political and economical factors that will be affecting Jet2.com in the coming years. In order to structure the information, several management tools will be used such as: SWOT analysis: this will help to identify the strength and weaknesses together with the company’s environmental opportunities and threats. PESTEL analysis: This tool will select the vital influences on the company's future development, which factors are most likely to change and which ones will have the greatest impact on the company.( Oxford University Press, 2007) Porter’s Five Forces: will determine the competitive intensity and therefore attractiveness of a market. (Porter, 2008). Finally it will be discussed the company’s ability to interact with its stakeholders.
Background and company’s mission statement
Jet2.com Limited is a British low-cost airline founded in 2002 based at Leeds Bradford Airport, England. It operates services from eight UK bases to 54 destinations. “Our aim is to be the safest, most responsive and reliable operator of low cost services in Europe” / “The North’s favourite airline” /“Friendly low fares” (Jet.com, 2012)
Market structure of the low-cost airline industry
Market Share: The low-cost airline industry is dominated by a few large companies. (See appendix 1). Jet2.com’s main competitors are Easyjet, Ryanair and British Airways. However it is very difficult to determine all the competitors due the company’s diversified presence in more than 10 countries. In the UK there are 7 other low-cost airlines which shape the market creating more competition.
Barrier of entry: There are very high barrier of entry, starting for the start-up cost, followed by the technological aspect and ended by its difficulties to exit the market.
Product differentiation: Jet2.com is a private limited company, a subsidiary of Dart Group PLC (public limited company) which at the same time owns Jet2holidays.com and Fowler Welch, a long-established Distribution & Logistics business. The airline also offers contract charter and air cargo services for royal mail, Tesco and others with 42 Aircraft (27 Boeing 737-300s, 4 Boing 737-800 and 11 Boeing 757-200s) of which 37 are fully owned by the Group.(civil aviation authority, 2012)
Company size: By January 2011 the company had just over 1500 employees. The fleet consists of 43 aircraft located across eight UK bases. Philip Meason, the chairman of jet2.com has announced that for the year ended in March 2012, Jet2.com flew 4.3 million scheduled service passengers and sold over 200,000 package holidays.(Who is Jet2.com?, 2012)
Company’s shareholders: around 40% still held by the founder and Chairman, Philip Meeson. Around 40% of the rest are mainly held by institutional investors with the balance held by company staff and private investors.( Meeson, P., 2012)
Conclusion: According to these 5 aspects listed above, the market structure of Jet2.com can be classified as Oligopoly. (See appendix 2)
The common and traditional definition of a stakeholder is that of Freeman (1984): “any group or individual who can affect or is affected by the achievement of the organization’s objectives” Another well known and more up-to-date definition is, “those groups who are vital to the survival and success of the organization”. (Freeman, 2004) The low-cost airline industry is has a significant number of stakeholders; some of which belong to either the primary or secondary level of stakeholders Managers will attempt to make long-term decision that will accrue benefits to the majority of the stakeholders.
Employees have a vital interest (stake) in the company for obvious reasons, if the company shuts down, they would lose their jobs. Jet2.com is owned by a larger company (dart group) which makes it a primary...
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