Posted at 11.18.2018
In this chapter, I will present position and analysis the current position using both of used SWOT and PEST model.
EasyJet appears to be very good situation and more expertise will anticipate have great opportunities for the reduced cost strategy. Resultingly the saturated market and insufficient other choice in the Uk, competition is probable aggravated - ineluctability followed by acquisition and coalition, an early on sign of which is EasyJet's purchase of British Air travel subsidiary "GO". In UK flight market, provided very less progress opportunities, therefore concentrate will be on the other continental market. Next thing forward in this course is a fresh base heading Dutch, Berlin, with plane tickets from 11 Western cities, and the on Eastern Europe. Price strategy was also the emphasis point, its extension their path network. At last, promotion must also convince individuals who it is safe to take flight and constitute EasyJet as Euro most significant low fare flight.
EasyJet was used the bright orange as Pantone 021C, employed by no other airline at that time or since. It have an effective financially that they lower out all meals and snack foods on travel head to, can reduced the price tag on operation. Have more flexible organisation and being viewed as an innovative. The airline opened up a telephone booking centre is a strong e-business on 1995. EasyJet is also was an integral part of the consortium and also have granted by UK' air traffic control system 'National Air Traffic Services (NATS)'.
The brand 'EasyJet' has all the qualities required for long-term memory storage and will not be easy to neglect. The air travel flies to main destination airports throughout European countries so that it is very attractive to business holidaymakers. It gains efficiencies compared to traditional carries with swift turnaround times, and progressive landing charge agreements with airports, maximizing asset utilization. One model of aircraft reduced training, maintenance and supervisory costs. At last, EasyJet has been wisely buying strong brand build measured like advertising and tv set shows ensured high brand recall.
Below involve some weaknesses for EasyJet organisation. It extended sustenance of cost authority can be difficult in a dynamic market. Both drivers of growth, the give attention to price and the focus on convenience appear to be come to their natural limitations and differentiation from there could become difficult. The flight will not own the 'EasyJet' brand, it's had by Sir Stelios and as a result, does not have control on its performance of other products and services used the same name. In addition, it loss of consumption in future could adversely affect its market performance. On the other hand, the business model can as time passes become blurred under competitive pressure and loan consolidation of the reduced Cost Holds (LCC) industry. The airline must be constantly innovative to maintain its current advantages in e-tailing. Increased fleet capacity could be difficult to complete during lean cycles and in the face of growing competition in a matured market.
Recent extension of the European union has resulted in wide open of new markets for the LCCs. Their low fares increase movement of job seekers across boarders and also promote the travel and leisure industry, lead to financial growth. Consolidation could help EasyJet to a certain degree offset the pressure on its costs and fares. In any other case, vertical and horizontal expansion could be an important option for EasyJet for progress in mature markets and offset any future threat of increased in service agency costs. Drawback of traditional airlines from less traffic-intense routes could be an opportunity for broadened. EasyJet will not seem to get any plane tickets to Scandinavian capitals like Stockholm and Helsiki where immigrant flow was increasing.
The threats of EasyJet acquired some factors. Terrorism and catastrophic loss can lead to lesser flights and loss of infrastructural support, conflict dangers and outbreak of epidemics or pandemics could increase apprehensions about air travel. Technology progression in the conduct of conferences like video conferencing can be damaging to short distance plane tickets and impending increased in environmental fees could increase costs. In addition, limited or no slot availableness could be hurdle in future expansion plans and because of its limited energy hedging policy, EasyJet is more vulnerable to power price fluctuations increased by variability in its costs. Money fluctuations is also the factor of dangers, it will have an effect on especially the united states buck denominated costs like aircraft purchase, aircraft funding costs, maintenance reserve payments, gasoline purchase etc. . Excess capacity and cost cutting tactics by competitors can affect passenger traffic on popular routes. Imitation of some main no-frills features by traditional airlines on same routes can confuse and blur the distinctive image of any LCC. Additional, traditional players can partly move over or start their own baby low priced airline. Last, dependence on third party providers might lead to problems when any of these contracts aren't renewed or negotiation of appropriate replacement does not take place or if higher rates are incurred.
The following factors are likely to have an affect on the EasyJet.
In 1990 the Western european deregulation of commercial aviation coincided with the growth of the low cost flight industry. The LCC on the market were able to take advantage of the relaxed regulations and increase their operations. On the other hand, threat of war in the East Euro and European union east enlargement might provide usage of viable the new markets were also the political factors of EasyJet.
Mercer Management Consulting (2002) reported that the reduced cost airline market conforms to the requirements of three components. First of all, it provides a simple product comprising no seat reservation, free seating, and sufficient in airfare service. They may be a genuine no frills airline with a straightforward product offered to the market. Webster (2004) noted EasyJet's ability to keep up a high amount of customer focus through a new, user friendly website with an improved reservation process.
Figure : Source "Impact of Low Cost Airline" Mercer Management Consultancy 2002
Secondly, it is clear that the reduced cost air travel market is characterised by: mergers and acquisitions; the expansion of existing low cost airlines and finally, market exits because of this of individual bankruptcy e. g. Debonair.
Furthermore, the reduced cost companies operate brief haul, indicate point traffic with brief frequencies, pursue aggressive marketing promotions and package with secondary airports. EasyJet, however, has differentiated in this esteem by dealing with major hub airports e. g. Gatwick.
Finally, the industry works an inexpensive ethos, which is retained by trim sales, high output of resources, zero-maintenance costs and low wages.
The low priced carriers position their product to leisure tourists and non business holidaymakers, however EasyJet has differentiated by concentrating on the business and leisure sections. This behavioural segmentation creates a far more dynamic edge in comparison to their rivals who solely focus on leisure travel. Thus, EasyJet must be sure that its strategy is tailored to a wider market.
Walton (2005) confirmed that EasyJet was shown as a Western low cost flight with an ongoing reading of 26 million individuals in 14 key countries. It has 190 routes to 58 international airports and 163 million people live within one hour of EasyJet's airports.
Figure "LOW PRICED Airlines Gaining Momentum in European countries" Schneiderbauer, D. & Fainsilber, O. (2000)
Low cost companies be capable of maintain a higher amount of customer focus through user-friendly websites with increased booking functions. These websites are capable of charging bookings with higher simplicity and utilising an easy to make use of fare finder to get the cheapest fares. Offering tickets via the scientific medium of websites and therefore insurance agencies no travel agents, they avoid paying agency commissions.