Assignment #2 An elastic demand is a demand that if the price changes the quantity that is demanded changes quite a bit‚ and an inelastic demand is no matter the price there will still be a demand for it (Economics‚ 2017). Generally‚ an elastic demand is a type of good that is more of a want rather a need‚ and an inelastic demand would be something that would be along the lines of a necessity. To figure out the elasticity a person would use the equation: (% change in quantity/% change in price). If the elasticity
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Britain S0263-2373(98)00059-0 0263-2373/99 $19.00 0.00 Case Study easyJet’s $500 Million Gamble DON SULL‚ London Business School‚ and Commentators‚ Constantinos Markides‚ Walter Kuemmerle‚ Luis Cabral. This Case Study details the rapid growth of easyJet which started operations in November 1995 from London’s Luton airport. In two years‚ it was widely regarded as the model low-cost European airline and a strong competitor to flag carriers. The company has clearly identifiable operational and marketing
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EasyJets History Timeline The humble beginnings of EasyJet started in 1995‚ when Sir Stelios Haji-loannou founded the company‚ with the purpose of offering low cost flights across Europe. October of that year saw the first base being opened at Luton Airport‚ with the first flight taking off on November 10th to Glasgow. The following year in 1996 saw Easyjet conduct its very first international flight‚ initially starting with flights to Amsterdam‚ shortly being followed by Nice and Barcelona. 1996
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EASYJET “To have happy customers a firm ha sto create expectations and meet them.” Starting from this awareness‚ easyjet become one of Europe’s first low cost airlines by adopting : Efficiency-driven operational model ( tutto quello che c e scritto sotto) Maintaining high customer satisfaction ( low prices and high quality can be pursued together) Creating brand awareness ( 10% of Easyjet revenue were spent in advertising) Creating a corporate culture implementing educating programs.Stelios
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This report characterises the strengths‚ weaknesses‚ opportunities and threats (SWOT) facing easyJet from a global perspective. These strengths‚ weaknesses‚ opportunities and threats are summarized in the table below and form the structure of the SWOT analysis. Strengths Weaknesses • Solid financial growth • Strong brand name • Effective business strategy • Delicate cost position • Management team Opportunities Threats • Fleet expansion • New routes and expanded operations • Strong competition
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EasyJet is Europe’s leading low-cost‚ no frills airline. When it was created eight years ago‚ easyJet was a bold new venture aiming to change the rules of its market. Since its first flight in November 1995‚ the airline has grown from a Luton base offering two routes from Luton to Glasgow and Edinburgh‚ served by two Boeing 737 aircraft‚ to one that offers 125 routes from 39 European airports‚ operating 72 aircraft (November 2003). The phenomenal growth of easyJet was boosted by its merger with Go-fly
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CONTENTS PAGE 1. – Introduction_________________________p. 3 2. – Application__________________________p. 4 2.1. - Easy Jet profile__________________p. 4 2.2. - PESTEL Analysis__________________p. 4 2.3. - Porters Five Forces________________p. 5 2.4. – SWOT__________________________p. 7 3.0. - The Challenge_______________________p. 7 4.0. – Recommendation____________________p. 8 5.0. – References_________________________p. 8 1. - INTRODUCTION According to Boddy
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IntroductionThis report has been written in order to provide an environmental and competitive analysis of the low-cost airline industry sector from the position of Easyjet. It will give a brief history into Easyjet and the low-cost airline industry. It will analyse the internal strengths and weaknesses as well as the external threats and opportunities. Competitors will be analysed through the use of porters 5 forces model. Recommendations will be made for easyJet’s marketing strategies for the next
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2.1 Strategy EasyJet has adopted its business model from Southwest Airlines from the United states. It is adapted to the European market trough further cost-cutting measures. Important points in this business model are high aircraft utilization‚ short times on airport‚ charging for not needed extras and put much efforts in keeping the operating costs low. The key words in the strategy of Easy jet are “low price and no frill” based on Porter’s generic strategies (2.1.1) (appendix XX). This states
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I.INTRODUCTIONThis report outlines the analysis of two low-cost airlines performance in Europe‚ namely easyJet PLC and Ryanair Hldgs during their financial year between 2006 and 2008. It examines the companies’ portfolio‚ future prospects and competitors to analyse the threats and opportunities facing their business. In conclusion‚ there is a recommendation whether to invest on easyJet and/or Ryanair’s shares. II.FINANCIAL AND NON-FINANCIAL RATIO ANALYSISIn terms of the completed financial analysis
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