Five Forces model to analyze
1. Use Michael Porter’s Five Forces model to analyze the competitive environment for easyJet.
easyJet being a 100% direct sell service, had main focus on the internet marketing. Following Southwest Airlines model, easyJet started trend “no frill” services, which helped in keeping costs down. easyJet provided first come, first service with equal service for all. Therefore the target customers were leisure and casual travelers with no service for business class travelers. easyJet CEO Stelios Haji-loannou, a young entrepreneur with previous success stories started this airline facing many challenges, some of which obstructed from entering new markets or limited its growth. Some of the challenges were:
1. Whether to go public or stay private after the company’s growth in 1999 2. Dependencies on sub-contracting firms which took some of the responsibilities of the operations 3. Differentiation in corporation since the corporate culture were very much in its own way different than the other corporations 4. Had young and inexperienced employees,
Competitive environment for easyJet:
1. Supplier Power:
Manufacturers of Aircrafts can switch to different aircraft purchasers, which is not very difficult, since there were many large airlines in the field. Aircraft manufacturers, e.g. Boeing and Airbus carry brand name and are established manufacturers in the world, and there are not very many manufacturers in the world. Aircraft manufacturers can also switch from supply to commercial carriers to defense carriers or, can either choose a different buyers or short supply aircrafts due to economical changes or market conditions.
2. Buyer Power:
Airline industry is quite large and worldwide spread and there are small and large players in the airline industry. Passenger (customers) can easily switch from one airline to different airline. Since easyJet did not allow business class travelers, which only allowed leisure and...
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