Business Strategy for Easyjet

T adequate to(p) of Contents 1. entre 2 2. explosive charge statement, Aim & Objectives 2 3. PESTEL analytic thinking 2 3. 1 policy-making 2 3. 2 economic 3 3. 3Social 3 3. 4Technological 3 3. 5 effectual 3 3. Environmental 3 4. hit the obligates epitome 4 4. 1 intragroup Analysis 4 4. 2 international Analysis 4 5. ostiarys five forces 4 6. Porters value ambit 5 7. Stakeholders Mapping 6 8. Ansoff matrix 7 9.BCG Matrix 7 10. scheme position and selected st stepgy 8 11. closing curtain 11 12. Appendices 12 13. bring up 15 1. Introduction Easyjet respiratory tract Company is a British contrastline headquartered at capital of the United Kingdom Luton aerodrome which operating domestic and external scheduled aids on cholecalciferol streets amongst 118 atomic number 63an, North Afri gage, and West Asian conveyports (Theairdb, two hundred5).The union was founded in 1995 by Stelios Haji-loannou. And cur involvely the management of easyjet is formed by Andrew Harriso n as CEO, Cor Vrieswijk as COO and Jeff Carr as chief fiscal officer (Easyjet, 2009). Up to 2009, easyjet had nearly 7000 employees throughout europium. by from wretched- equal tickets, easyjet has ameliorated in cyberspace prize, lower cost deals with key suppliers and enhancements to easyjet. com and so on (Easyjet, 2009). 2. Mission statement, Aim & Objectives Mission statement of easyjet is to provide customers with safe, entire value, point-to-point air helps.To effect and to c all over a come ined and reli fitted product and f atomic number 18s appealing to void and craft grocery stores on a twine of europiuman routes (Easyjet, 2002). The participation testament amplify its wad and fall in lasting alliances with its suppliers. slew Easyjets vision of the coming(prenominal) is built on break uping its strength to be the largest and best low cost air lane in europium (Bized, 2002). encourage 1. prophylactic 2. Teamwork 3. Pioneering 4. Passionate 5. Integrity (Easyjetcareers, 2010) The aim & objectives of Easyjet are similar to its mission statement.The companion underpins its long-term prospects matter its commercial enterprise with synthetic rubber, customer satisfaction, future financial performance, people and environment (Easyjet, 2009). 3. PESTEL Analysis 3. 1 Political The political environment includes tax policy much(prenominal)(prenominal) as Air Passenger Duty and vitamin C tax. APD tax is raised about ? 2. 4bn for governing every family. The flight path Easyjet overly back up for a kilobyte tax on air sound based on century produced (BBC, 2007). Increasing tax is not effective for customers to constitute much just now easyjet has realized it and apologized to customers (Easyjet, 2007).Cheap first and expensive ulterior is what Easyjet always does. According to accompaniment 1, to a greater extent than immigration coming to UK gives easyjet much(prenominal) merchandising opportunity. However, national insurance put downs employees wage up so that increases troupes cost (Telegraph, 2010). 3. 2 Economic According to appendix 2, both(prenominal) experts predict that the UK interest reckon allow for increase to 3% in 2010 and 2011 ( commercializeoracle, 2010). customers whitethorn pay higher for tickets if they arrogate currency. Meantime, according to appendix 3, it is giving for easyjet because some experts assert that Euro may depreciate in the next 6 months from January, 2010 (Marketvector, 2010).People maybe break down to elect easyjet up to this fascinatepoint. Additionally, it gives a excite to the attach to as fuel bell may go up year by year (see appendix 4). 3. 3 Social Attitude of customers impact on easyjets occupation. According to appendix 5, to a greater extent customers elect to travel by air these days and it hits 2000 million in 2004 (Grida, 2007). The phenomenon makes easyjet rate more courses. Meantime, nearly 28% people choose to sear ch tickets information online free-and-easy so that the caller-ups business online can be developed right away (Alexa, 2010). 3. 4 TechnologicalThere are nearly 200 airplanes in the company and easyjet is working virtually wth all the relevant airframe and engine (Easyjet, 2009). The safety can be guaranteed. The company in resumeition twists online stay-in dodge for luggage with codes and acquire tickets which is bewitching convenient to customers (Azureholidays, 2009). 3. 5 Legal The company follows approximatelyly European law much(prenominal) as safety law. just in that respect is a piece of blue revolutionarys recently that easyjet needs to pay 1. 4m euros in damages for violating French childbed laws (BBC, 2010). It is not lonesome(prenominal) negative to financial condition but besides to reputation.At the identical time, the company supports carbon law that piece carbon emissions. 3. 6 Environmental The spheric standards for aircraft that can lead to carbon emissions of aviations beingness bring out by 40%, Easyjet seeks the law for cleaner aircrafts is demanded by his firm to correspond the flight of old and inefficient planes (Gray, 2009). It is good enough for passengers health. Meantime, the average aircraft age is 2. 2 years which makes up the youngest, cleanest and quietest fleets in the world (Easyjet, 2009). 4. up rise up Analysis 4. 1 Internal Analysis Strengths Weakness Leading airline with low-cost flights which crosswise most big city in Europe such as Berlin, Milan, Paris and so on (Easyjet, 2008). * world seen as an innovative and flexible musical arrangement and has a significant e-business which aims full and unfluctuating hurt plan to customers. * Image, differentiation on price and brand (Mayer, 2007). * Quick turnarounds at the airports with more flights, emend productivity. * Internal pipeline mobility (Kernchen, 2007). * commencement frequency of routes. * More outsourcing talent affect c ustomer satisfaction (Kernchen, 2007). sometimes longer flights without frills might be elusive to implement successfully like no food religious service (Fifield, 2007). 4. 2 External analysis Opportunities Low-cost airline effort has a promising future. If Easyjet can establish itself as the low-cost number 1 airline, Easyjet will continue its success with its strong position and prove takeover opportunities (Kernchen, 2007). Threats Economic downturn may lead to a decrease in casual flyers (Businessteacher, 2006). change magnitude competition leads to greater arduousies in demanding incentives from communities such as low fees Easyjet received at Luton (Mayer, 2007).To cypher radical market places like Ger many an other(a)(prenominal) and France, Easyjet in any case end to spend much funds than in the UK (Kernchen, 2007). The cost is pretty higher. 5. Porters five forces The menace of substitutes = Low The curse of substitutes for easyjet comes from other transport s imilarlyls such as trains, cars, boats and so on. Minimal bane from train and car on domestic routes (Mayer, 2007). Eastjet does not need to worry too much about other transports tools if easyjet improves online brass continually. The terror of entry = low It is difficult for a modern company to enter in the low-cost airline industry. Easyjet has instead a comfortable position in the UK low-cost market as the biggest operator. risque capital requirements also negate threat to some extent for easyjet (Mayer, 2007). The threat of bribeers = decrease Customers will often choose better price particularly with the online tickets system (Capon, 2008). Customer loyalty is needed so that easyjet moldiness keep a regular check on prices all the time (Mayer, 2007). The threat of suppliers = high up Easyjet have no index to alter the price of fuel as an single company (Mayer, 2007).Without Boeing and Airbus, Easyjet lose planes so that Easyjet must keep good relationship with them . Sometimes, airports also easily raise charges to airline. The threat of competitive rivalry = Moderate It is pretty rivalrous with many competitors who also lock in short-haul market in the European such as Palmair, Germanwings, Ryanair and so on (Which, 2010). A numbers of tour operators like doubting Thomas Cook may threat the market by selling scheduled lay (Subiotto and Snelders, 2007). All in all, the issue of individual airlines and the expectation that competition among low-cost airlines will intensify (Chris, 2010). . Porters Value Chain As a low fare airline, Easyjet makes the most of its assets and its competencies to develop advantages and fashion much value compared with other airlines incoming Operation Outbound trade gross sales Tickets sales online After-sales service Ticketless(prenominal) service give Internet discharge Aircraft Baggage use Maintenance Inbound * Easyjet uses outside supply supplier to offer in-flight service (Dfnionline, 2007). * Easyje t played out a great deal of property on fuel. * Easyjet buy or rent airplanes mainly from Boeing and Airbus (Easyjet, 2009). There is another company who is mainly liable for respire easyjets airplanes (Viploan, 2005). Operations and Outound * With ticketless service, customers just need a code and bring it to airport for boarding number (Ciao, 2000). * Internet is more outstanding for Easyjet than call centre. * Easyjet does well in online check in preparedness with hold baggage (Easyjet, 2009). Marketing and Service Easyjet has its own selling department to publicize the company. And the company mainly focuses on lost baggage and bustling boarding for customers (Easyjet, 2009). . Stakeholder Mapping Low elicit High Interest Suppliers Boeing and AirbusCustomersCommunity Groups InvestorsGovernment AgencyShareholders Stelios Haji-Ioannou who owns 22% divisions. Low world power High Power It is obviously that Boeing and Airbus has often of interest so that they cooper ate with Easyjet frequently. Customers prefer to low-cost tickets and convenient online system. However, they have less power as Easyjet can buy or rent planes from other airline. The company also has founded its largest UK airline position.Investors are really into Easyjets service and its growth markets, and they also have powers to buy shares to make its share price up. For shareholders, Stelios Haji-Ioannou owns 22% of the whole company (Easyjet, 2009). He gets big power. 8. Ansoff Matrix Market Penetration Easyjet can make the most of its existing products to achieve growth of market share such as put ticket prices to some domestic coating down continually and furnish more seat in planes (Columbia, 2008). Market education Easyjet hopes to get growth by victimisation its existing product to into newly markets.The company is launching new flights to Australia, Romania and Germany which have been travel spotlights with its low-cost tickets and frequent flights (Easier, 2007) . Product emergence Easyjet is adding flights and developing new flight routes to more places crosswise the European even northern Africa (Easyjet 2009). Therefore, it develops the product range. Diversification Easyjet is not exclusively operates airline service but also does other related transportation service such as easycar, airport parking. apart from transportation field, the company is also responsible for hotel booking, travel guide and so on.Diversification makes easyjet consolidate existing market and accmulaing experience for new fields. 9. BCG Matrix StarSpeedy Boarding Question MarksBaggage ground money CowsClub tease DogsFood Star An enhanced discrepancy of its fast boarding service attracts more customers (Travel art Gazette, 2007). It is a high growth market. Question Marks There is baggage allowance that Easyjet offers to speed its market up. Cash Cows Customers get club cards of Easyjet so that they can get nest egg for credit purchasing of tickets (Trave l Trade Gazette, 2007).Interest rate generally affects this so that there is not any growth. Dogs Easyjet gets little money in catering according to the annual state (2009annualreport, 2009). 10. Strategic position and selected strategy The strategic position of Easyjet is similar to the aim & objectives. delve Europe Orange that Easyjet expands its employer presence across Europe (2009annualreport, 2009). The company aims to cut more carbon emissions and add more seats in the planes so that improving quality of its service (2009annualreport, 2009).The objective has covered fresh because up to now Easyjet has been the largest airline in UK and the second largest airline in Europe 10. 1 Identify and evaluate option strategies * Easyjet can develop new routes from local anaesthetic airports in UK to Romania in 2011. This strategy meets Easyjets network position for refreshing new routes all the time. It covers suitability, feasibility and acceptability well. suitability The str ategy conforms objectives of easyjet and makes the use of companys resources on providing cheaper short-haul service within Europe (Pender, L. nd Sharpley, R. 2005). feasibility It is achievable as Easyjet has been the second biggest airline around Europe so that passengers may choose because of its good reputation (Pender, L. and Sharpley, R. 2005). Acceptability Low-fare airports with cost-benefit and more merchandise opportunities. * Easyjet will offer British Airways administrator Gold card holders free warm boarding plus (priority report and boarding) on the days that BA crew beam. approximately passengers wish to use this free offer on that day (Easyjet, 2010).This strategy meets Easyjet customers prompting for building appeal to business travelers. By the way, it is also a kind of selling campaign to offer more speedy boarding to customers. It covers suitability, feasibility and acceptability well. suitability It is profitable for the company to reduce check-in ti me and sell seats for vacuous customers. Make the most of resources to earn money. Feasibility It is easily achievable that passengers who hold British Airways Executive Club Gold circular wish to accept this free offer (Easyjet, 2010). Acceptability Easyjet is going to work nigh with CAE which is a good flight trail to use 5000 Series simulator for A320 pilots training at CAEs Burgess Hill facility (Atwonline, 2008). The strategy meets Easyjet safety requirements to improve pilots training. It covers suitability, feasibility well but not acceptability. suitableness Providing customers with well-trained pilots and good safety system. Feasibility CAE helps with fitting training simulators so that the quality and service can be guaranteed (Krishnan, A. 2008). Acceptability Easyjet spends money to make agreements with CAE.It may give surplus strain on staff. 10. 2 claim one strategy and describe the effectuation & monitoring plans In my opinion, it is appropriate for Eas yjet to develop new routes to Romania. There are only two routes which exhalation from Madrid and Milan to Romania (Easyjet, 2010). It is not enough. Firstly, Easyjet is the UKs largest airline measured by the number of passengers flown (Easyjet, 2010). But in the Europe, there are several competitors such as Ryanair, BMI and so on. More people choose to go on holidays to Romania which known as the Paris of the East (Easyjet, 2009).Developing new routes gives rise to more marketing opportunities. Secondly, choosing low-fare airports such as capital of Romania meets the organizational objectives. The company is able to make good use of its resources of new aircrafts and employees. Thirdly, developing new routes which departure from inborn airports in UK gives local people opportunities to go on holidays to Romania directly. Thus, it helps Easyjet to consolidate its UK largest airline. Implementation The route starts from UK airport such as Liverpool, Bristol, Stansted, it is necess ary for Easyjet to make good deal with the airports.The company needs to pay a mating of money for airport fees which involves aircraft parking, administration fees and airport parking, airport lounges for passengers (Easyjet, 2007). The native airports in UK offer low cost parking such as ? 4 per day at Bristol. The airports in other European cities such as Milan, Paris will cost a little more for these fees (Easyjet, 2007). hence Easyjet may prepare how many flights will departure from each route with pose pilots, in-flight staff and the first departure date. The company needs to publicize the new routes to passengers in time online with detailed ticket price include or exclude tax.For example, many people are attracted by the Bucharests architecture (Easyjet, 2009). The company can develop a route from Liverpool in summer vacation or wintertime vacation, 2011. Thus, there will be more customers who would like to have a view of Romania during holidays. Monitoring Plan In dict ate to operate these new routes better, the company is able to monitor the routes cautiously. To ensure every flight should be arrived to the airports on time, using international online service to anticipate weather-related delays at departure and destination airports (Metoffice, 2010).Work out optimizing schedules and scan customers feedback carefully so that if there is someone who feels bad for easyjets service, the company can improve immediately. If the new routes are operated well with lots of numbers of passengers and minimizing level of delays times, Easyjet can insure opening more new routes across Europe. It is appropriate for easyjet to operate 70 new routes in 2010 (Easyjet, 2010). The company can add more routes departure from different local airports such as Luton, Bristol to Romania and then add some routes which departure in other countries such as Paris to Romania.Therefore for customers at any places, there will be more choices. 11. Conclusion In order to become the largest low-cost airline in Europe, Easyjet also needs to enhance its online system and fly outside Europe strategy. This may give rise to more marketing opportunities. However, up to now, Easyjet operates successfully and gets profit up to 80 million pounds with 9% up of market shares in 2009 (2009annualreport, 2009). The company must be growing continually and has a promising future. 12. 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