The basis of an organisation’s mission statement should answer the question “What business is the company in?” easyJet is doing this by stating that it provides ‘point-to-point air services’ to its customers. easyJet also needs to know how much it costs the competitor to serve, and how much capacity the competitor has for, every route in question. First among the LCCs to introduce e-tailing, thus eliminating intermediaries and distribution costs, 5. Competitive advantage of low-cost carriers: some implications for airports. It inhabits a low cost Niche position. It has been reviewed & published by the MBA Skool Team. The airline was founded in March 1995 by Greek-Cypriot entrepreneur, Sir Stelios Haji-Ioannou. 2.Evaluate EasyJet’s operations strategy against Hayes et al.’s criteria of consistency and contribution. Browse marketing analysis of more brands and companies similar to EasyJet. Looking for a flexible role? Overall, easyJet has to develop a realistic and accurate assessment of the market-niche to be served. …. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Competitive analysis. Experts predict great potential for future growth in the next years (see appendix 4). The recent evolution of its product and service add new elements to the basis of competition. Need for customer loyalty because of low switching costs. The airline market is best classified as having a monopolistic competition market structure, whereby there are many firms will similar, yet differentiated services. Missing out on the advantage of having a frequent flier program, 2. EasyJet is one of the leading brands in the airlines sector. introducing a customer retention scheme. A key issue will be the extent to which favourable cost trends – such as the impact of the Internet on distribution costs and cost synergies from industry consolidation – can offset these upward pressures on prices and costs. Advocates internal marketing, creative work done in-house. This is done in several major ways: Moreover, it reflects several decisions about what kind of air service easyJet wants to provide. Is being seen as an innovative and flexible organisation. Also, as the mission statement is the bedrock for the marketing plan it should be more quantifiable, as to how much market share easyJet aims to gain in the future, for example. Stelios Haji-Ioannou (Greek) founded the company in 1995. The dependence on spare parts from one manufacturer could pose a risk. It should also consider putting more emphasis on direct marketing by e.g. Thus, the time and cost advantage of travelling by the low-cost carriers far outweighs the increased flexibility and comforts of trains. It is based on the low-cost, no-frills model of the US carrier Southwest. Stelios Haji-Ioannou (Greek) founded the company in 1995. See http://www.ryanair.com/download/morganjune.pdf for actual data. Difficulties to expand as viable new routes from London are scarce. This is likely to pave the way for some acceleration in the process of airline restructuring and consolidation. The BrandGuide section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2800 brands from over 20 industry sectors. Trains and cars cannot manage long distance international routes. Lowest cost base. A key issue will be the extent to which technological advancements – such as the use of the Internet on distribution and cost synergies from industry consolidation – can offset upward pressures on prices and costs. Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. In EasyJet SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. Is part of the consortium that has been awarded to run UK’s air traffic control system (NATS). 3.To what extent does EasyJet’s concentration on low costs limit its ability to perform well against the A growing number of tour operators (like Thomas Cook and TUI) are selling air only scheduled seats to reduced prices [4] . To win over the French and German publics might cause problems as there appears still to be a general reluctance to use credit cards over the phone and Internet. Info: 4214 words (17 pages) Essay (Source: International Travel News (2003), available on http://www.internettravelnews.com/article/20223 Friday, 28th November 2003). The airline market is currently being re-shaped by the expansion of existing low-cost airlines. make the low-cost model unappealing for most business travellers. The most obvious competitive advantages Easy Jet possessed are delivering low-cost and maximizing margins. Uses differential pricing; off-peak travelling and booking in advance makes a ticket less expensive. Major players entering the LCC segment. Study for free with our range of university lectures! The UK/European tourism and airline industries are expected to expand, mainly in response to the improvement in the global economy as well as the favorable oil prices that have seen operating costs fall (MarketLine, 2015b). EasyJet is striving to promote sustainable aviation and minimize its environmental impact by putting its weight behind the development of electric passenger airplanes by the US startup Wright Electric. easyJet’s mission statement also gives information on the ‘How to get there?’ by putting emphasis on its ‘people’ and ‘suppliers’. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. The businessman chose the modest town of Luton in the United Kingdom as the place to start his missionto offer low-fares flights in Europe. Management. In this paper, the sources of competitive advantage of low-cost carriers such as Southwest, Ryanair and easyJet are identified. Focus remains on pricing Strategy and expansion of its route network. If cost trends are less favourable – for example because of increasing fuel costs, congestion and other environmental restrictions, as well as the prospect of higher security and insurance costs to reflect the risks of terrorism – the scope for lower yields would be less, and this might reduce future growth trends. Within this space, Ryanair and Easyjet are the two biggest low-cost airlines in the region (Elderman 2014; Dowling 2010). easyJet has to consider whether it should respond to new entrants by ceding niche-segments or by competing aggressively on price, routes and service in an attempt to drive the entrant out of the market. David Gillen and Ashish Lall. The introduction of the single currency in Europe is likely to bring more business to easyJet as Europe becomes more integrated. Usually the time and cost advantage of the low-cost carriers far outweigh the increased comfort and flexibility of trains or cars (e.g. Also, trying to appeal to widely different customer needs runs counter to the overall trend in service industries, in which distinctive approaches, tailored to different customers, have generally come to dominate [14] . Dependence on only two suppliers could be risky if the supplier faces any operational problems. SWOT analysis of EasyJet analyses the brand/company with its strengths, weaknesses, opportunities & threats. Choosing the right competitive strategy is crucial strategy development step for the corporate, business unit and products and/or services success. EasyJet’s route network shows broad coverage of western and southern Europe, with a focus on key holiday destinations. Furthermore, yield management “can help to better use price in the marketing mix to best reach the most customers” [17] . In October 2002 the airline signs a deal to purchase 120 Airbus, which will facilitate the airline’s ongoing growth strategy.
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