Easy Jet
BUS6A2 - BUSINESS STRATEGY
EasyJet Business Strategy Overview
Berkay Dogan Emre Durmaz Hadrien Giry Deloison Valentine Kirgener de Planta
4569 Words.
1
Executive Summary
This report will overview the industry EasyJet operates in, analyse its structure, macro environment, strategic group as well as the major strategic issues, business strategy and how they sustain competitive advantage. This analysis will involve the status of the company in relation to the status of the overall business. EasyJet Airline Company Limited is the largest airline of the United Kingdom and it is based in London Luton Airport. They were founded in 1995 and currently have a fleet size of 190 serving 134 destinations. They had 8446 employees in 2012 and revenues of 3,854 billion pounds and a net income of 255 billion which are both in the rise from the previous year (EasyJet 2012). Their slogans include "Where can we take you?", "Come on, let 's fly!", "The web 's favourite airline" and "Europe by EasyJet". The macro environment of the European low fare airline industry is influenced by the liberalisation efforts of the European Union aimed at improving competition, brought in via a number of the pan-European legislative measures (Sørensen 2005). Increase in the utilization of videoconferencing as a substitute for business travel is another macro environmental factor that has impacted the low fare airline industry. Third factor is the internet that has decreased the distribution costs for airlines and has increased transparency by allowing consumers to find
2
cheapest possible prices themselves within seconds, eliminating the need of travel agencies. This is of further advantage to low fare airlines in today’s economical environment where consumers are even
EasyJet Business Strategy Overview
Berkay Dogan Emre Durmaz Hadrien Giry Deloison Valentine Kirgener de Planta
4569 Words.
1
Executive Summary
This report will overview the industry EasyJet operates in, analyse its structure, macro environment, strategic group as well as the major strategic issues, business strategy and how they sustain competitive advantage. This analysis will involve the status of the company in relation to the status of the overall business. EasyJet Airline Company Limited is the largest airline of the United Kingdom and it is based in London Luton Airport. They were founded in 1995 and currently have a fleet size of 190 serving 134 destinations. They had 8446 employees in 2012 and revenues of 3,854 billion pounds and a net income of 255 billion which are both in the rise from the previous year (EasyJet 2012). Their slogans include "Where can we take you?", "Come on, let 's fly!", "The web 's favourite airline" and "Europe by EasyJet". The macro environment of the European low fare airline industry is influenced by the liberalisation efforts of the European Union aimed at improving competition, brought in via a number of the pan-European legislative measures (Sørensen 2005). Increase in the utilization of videoconferencing as a substitute for business travel is another macro environmental factor that has impacted the low fare airline industry. Third factor is the internet that has decreased the distribution costs for airlines and has increased transparency by allowing consumers to find
2
cheapest possible prices themselves within seconds, eliminating the need of travel agencies. This is of further advantage to low fare airlines in today’s economical environment where consumers are even
Bibliography: Airfleets.net (2009). "EasyJet historic fleet." Retrieved on March 19th 2013, from http://www.airfleets.net/flottecie/EasyJet.htm. Al-Majali, B. (2012). "EasyJet Strategic Analysis." Retrieved on March 19th, 2013, from http://prezi.com/bgwzfnp_3vh_/easyjet-strategic-analysis/. Bamber, G. J., Gittell, J.H., Kochan, T.A. & von Nordenflytch, A. (2009). Up in the Air: How Airlines Can Improve Performance by Engaging their Employees. Ithaca, NY, Cornell University Press. Bosen, R. (2012). "European airline industry faces turbulence." Retrieved on March 18th, 2013, from http://www.dw.de/european-airline-industry-facesturbulence/a-16270503. Choose-Team (2008). "Easyjet launch air miles scheme." Retrieved on March 19th, 2013, from http://www.choose.net/money/guide/news/easyjet-launchesbudget-airmiles.html. EasyGroup (2013). "The Portal Site for all Easy Group Companies." Retrieved on March 21st, 2013, from http://www.easy.com/brand.html. EasyJet (2009). "Annual Report and Accounts 2009." Retrieved on March 20th, 2013, from http://corporate.easyjet.com/~/media/Files/E/Easyjet-PlcV2/pdf/investors/result-center-investor/easyJet_AR09_180109.pdf. EasyJet, P. (2012). "2012 Annual Report." Retrieved on March 18th 2013, from http://2012annualreport.easyjet.com/. EasyJet, P. (2013). "Europe by EasyJet Press Information Kit." Retrieved on March 18th, 2013, from http://corporate.easyjet.com/~/media/Files/E/Easyjet-PlcV2/pdf/content/press-info-kit.pdf. Financial-Times (2013). "EasyJet PLC Markets Data." Retrieved on March 20th 2013, from http://markets.ft.com/research/Markets/Tearsheets/Financials?s=EZJ:LSE&subvi ew=Overview. HHL (2010). Future Scenarios for the European Airline Industry, Center for Scenario Planning. IMDB (2007). "Airline, TV Series." Retrieved on March 20th 2013, from http://www.imdb.com/title/tt0426641/. Lawton, T. C. (2002). Cleared for take-off : structure and strategy in low fare airline business. Aldershot, Hants, England ; Burlington, VT, Ashgate. Michels, D. (2009). "Chairman 's Statement." Retrieved on March 18th 2013, from http://2009annualreport.easyjet.com/overview/chairmans-statement.html. Mindtools (2013a). "Porter 's Generic Strategies: Choosing Your Route to Competitive Advantage." Retrieved March 21st 2013, from http://www.mindtools.com/pages/article/newSTR_82.htm. Mindtools (2013b). "Porter 's Value Chain: Understanding How Value is Created Within Organizations." Retrieved March 21st, 2013, from http://www.mindtools.com/pages/article/newSTR_66.htm. Ottink, F. (2004). "EasyJet will soon be bigger than Ryanair." Retrieved on March 18th 2013, from http://www.yeald.deyeald/a/33111/easyjet_will_soon_be_bigger_than_ryanair.ht ml. Skywards (2013). "EasyJet." Retrieved on March 18th, 2013, from http://www.skywards.com/partner_details.aspx?SkinID=1Partner%20Airlines&id=tcm:431-1023221. Sørensen, T. C. (2005). An analysis of the European low fare airline industry with focus on Ryanair EU Business & Law, Aarhus School of Business M.Sci. Sumberg, J. (2011). "Easyjet paint job makes fuel bills less of a drag." Retrieved on March 21st, 2013, from http://www.bbc.co.uk/news/business-12428667. Travelflight (2013). "EasyJet Cheap Flights." Retrieved on March 18th, 2013, from http://travelflight.co.za/easyjet.