Market Entry Strategy: Easy Jet in India

ABSTRACT

This report contains analysis of Easyjet’s UK and European markets using information contained in the given case study and also from sources outside the course of study.

To begin with a brief overview of the company will be given. Subsequently using PEST and Five Forces models the external analysis will be completed identifying the companies’ core resources and capabilities.

Next the core of the previous analysis will be used to examine the opportunities for international expansion into the Indian market. The investigation will use theory to outline the threats and opportunities of entering this market.

CONTENTS

1 INTRODUCTION – THE COMPANY AN OVERVIEW 1 2 EXTERNAL ENVIORNMENTAL ANALYSIS 2 2.1 PEST Analysis 2 2.1.1 Political/Legal 2 2.1.2 Economic 2 2.1.3 Socio Cultural 3 2.1.4 Technological 3 3 INTERNAL ENVIORNMENTAL ANALYSIS 4 3.1 Porter’s Five Forces 4 3.1.1 Bargaining power of Suppliers (Moderate) 4 3.1.2 Bargaining power of Buyers (High) 4 3.1.3 Threat of New Entrants (Moderate - High) 4 3.1.4 Threat of Substitutes (Low – Moderate) 5 3.1.5 Rivalry within the industry (High) 5 4 COMPANIES KEY RESOURCES AND COMPETANCIES 6 5 MARKET ANALYSIS 8 5.1 Market Choice 8 5.2 Consumer Analysis 9 5.3 Competitor Analysis 10 6 MARKET ENTRY MODE: FACTORS TO CONSIDER 11 6.1 Internal Factor’s 11 6.2 Desired mode characteristics 11 6.3 Transaction – specific factors 12 6.4 External factors 12 7 MARKET ENTRY STRATEGY 14 8 CONCLUSION 16 9 APPENDIX 17 9.1 PEST Analysis 17 9.1.1 Political/Legal 17 9.1.2 Economic 18 9.1.3 Socio Cultural 19 9.1.4 Technological 19 9.2 Porter’s Five Forces 21 9.2.1 Bargaining power of Suppliers (Moderate) 21 9.2.2 Bargaining power of Buyers (High) 21 9.2.3 Threat of New Entrants (Moderate - High) 21 9.2.4 Threat of Substitutes (Low – Moderate) 22 9.2.5 Rivalry within the industry (High) 23 9.3 Competitor Analysis 23

References: airIndia.in, About Us, [Online] Available at: http://www.airindia.in/SBCMS/Webpages/JRD.aspx?MID=196, [Accessed 10 March 2012]. Anon (2012), easyjet.com Annual Report (2009), Strategy and KPIs, (Easyjet Annual report), [Online] Available at:http://2009annualreport.easyjet.com/business-review/strategy-and-KPIs.html [assessed on 6 March 2012] Ash Clark. A (2006), Easyjet faces 50% fuel cost rise, (The Guardian) [Online] Available at: http://www.guardian.co.uk/business/2006/feb/23/theairlineindustry.oilandpetrol?INTCMP=SRCH [assessed on 2 March 2012] Clark Foster. F (2010), Air travel taxes influencing how far we fly, (BBC News) [Online] Available at: http://news.bbc.co.uk/1/hi/programmes/fast_track/9043892.stm [assessed on 2 March 2012] Gow Geddes. A (2002) Europe 's ageing workforce, (BBC News) [Online] Available at: http://news.bbc.co.uk/1/hi/world/europe/2053581.stm [assessed on 3 March 2012] Hall Kahn, J., 2010. The Financial times : Kingfisher fails to pay employee income tax. [Online] Available at: http://www.ft.com/cms/s/0/73168a46-2afc-11e1-8a38-00144feabdc0.html#axzz1p7QheA5f [Accessed 12 March 2012]. King. M (2010) Passengers warned over imminent rise in flight tax, (The Guardian) [Online] Available at: http://www.guardian.co.uk/money/2010/oct/28/flight-passengers-flight-tax-rise [assessed on 2 March 2012] Lehey, J., 2010 Madslien. J (2011), Dubai Airshow: Fresh orders expected, (BBC News), [Online] Available at: http://www.bbc.co.uk/news/business-15164597 [assessed on 4 March 2012] Milmo Mintel (2007) No-frills/Low cost Airlines, intelligence report, July 2007, Mintel London Mintel (2009) Short haul Airlines, Leisure intelligence report, July 2009, Mintel London MIT (2010), Global airline industry programme - Airline Industry Overview, [Online] Available at: http://web.mit.edu/airlines/analysis/analysis_airline_industry.html [assessed on 3 March 2012] Naidu R Parker. A (2011) EasyJet chief puts focus on brand overhaul, (The Financial Times), [Online] Available at: http://www.ft.com/cms/s/0/943b005a-0610-11e1-ad0e-00144feabdc0.html#axzz1oN9EhKLE [assessed on 5 March 2012] Rajan, R Ryanair (2012), Strategy, [Online] Available at: http://www.ryanair.com/doc/investor/Strategy.pdf [assessed on 5March 2012] Teather Thompson. J, Z. E., 2010. Easyjet in India - Low Frill Airline Travel, Edinburgh: Edinburgh Napier University Business School. Transparency International (2010), Corruption perception index results, [Online] Available at: http://www.transparency.org/policy_research/surveys_indices/cpi/2010/results [assessed on 15 March 2012] Upadhyay, A., 2010