This essay focuses on Easy Jet, which is a British airline based at London Luton Airport. Analysis of the competitive environment in which it operates has been analyzed using Porter’s Five Force (Pereira, 2013). It indicates that the rivalry is fierce as market growth is minimal. Subsequent analysis of growth strategies that Easy Jet has adopted, is by using Ansoff’s Matrix, this has been undertaken to analyze how it competes within the industry and discloses possible future strategic opportunities for the company, which include online booking of tickets in the airline (Grant, 2010). In the other hand internationalization has been analyses using Yip’s Model, so as to determine the attractiveness of Easy Jet in the UK and mainland Europe market. These analyses identify how the company claims its objective through activities and relationships using Abell’s framework and industry analysis. 1) Introduction 1.1) history Easy Jet Airline Company Ltd., is an airline which was found in 1995 by Sir. Stelios Haji-Ioannou, a British entrepreneur. Its headquarters is based in Luton Airport. Easy jet serves over 500 routes and 129 airports around Europe, North Africa and West Asia. In 2011, Easy jet had 55.47 million passengers, thus becoming the chief competitor of the low-cost European airline market after the leader Ryanair (Williams, 2002). 1.2) Mission and strategy As a ‘low-cost’ company, the difference between easy Jets from traditional airlines is that it charges fares which are very low. It seeks to keep low cost by eliminating the unnecessary frills and cost. The need to reduce the cost is essential as a strategy to reach as many customers as possible. Traveling has become more general, and demand has greatly increased, with the ope... ... middle of paper ... ...2005). Through diversification Easy Jet strategy of hiring cars, the internet cafe and hotels are an ideal to find ways and diverse markets that can be wide to give the best prices for the customers. Most of the Easy Jets growth strategies entail three of the Ansoff matrix namely: market penetration, market development and diversification. Ansoff pointed out that a diversification strategy position apart from the other three strategies. The first three strategies are generally practiced with similar technical, financial, and merchandising property used for the creative product line; therefore, diversification usually necessitate a company to obtain new skills, new techniques and new facilities. The concept of diversification relies on the subjective understanding of “new” market and “new” product, which should replicate the view of customers rather than managers.
- 2011: AF-KLM operated more than 586 aircraft, 2500 daily flights to 230 destinations in 113 countries. 75,8 million passengers and 24,4 billion revenue ( exhibits 2a 2b and 3)
Mason, K. J. (2001). "Marketing low-cost airline services to business travellers." Journal of Air Transport Management 7(2): 103-109.
JetBlue's mission is "to bring humanity back to air travel". Its low-cost strategy is second-to-none, not even to Southwest. Utilizing Southwest as a model and benchmark early in Neeleman's career in the industry, he's managed to copy the Southwest model and expand upon it with his ability to find more innovative ways to cut costs along the organization's value-chain, while utilizing technology to increase productivity and further add to operational efficiencies. JetBlue's value chain demonstrates its ability to successfully compete in several key areas relative to the bases of competition within the industry and creates processes that focus on reducing costs, for the specific purpose of continuously creating value for its customers, i.e. fare pricing, customer service, routes served, flight schedules, types of aircraft, safety record and reputation, in-flight entertainment systems and frequent flyer programs.
EasyJet’s provision of low cost flights and it basis of “the earlier you book the ticket, the less you pay“ gives it opportunity to target its customers. EasyJet also provides a number of aircrafts in various airports thus easily accessibility of their services; this acts as it drivers in the market control and competitive advantage. It also has the advantage of providing other services such as car hiring, internet services and restaurants (Saleem, 2010). The ‘Europe by easy jet’ established a resounding brand positioning that is effective across all the main markets and enhanced visits to easyJet.com. EasyJet targets the consumers through various channels that help them to reduce marketing cost per sales. In 2001, EasyJet launched ‘easy Jet mobile app” which was downloaded by over six million people which accounted for 5% of overall sales. Mobile boarding cards are available through the app and make it easy for cust...
Due to the increased use of the internet, it is becoming more and more easier to book online. This allows customers to book flights easier and increase Jet2’s revenue. Revenue is increased through not having to deliver or post tickets out to its customers, in comparison with other non-internet based airlines. It is believed that over 97% of Jet2’s customers book online, which further highlights Jet2’s emphasis on online bookings.
It has stayed relevant to the market through its propelled philosophy of relationships to generate profits in the business. Since its establishment in Monroe, Louisiana the once tiny airline has stretched to greater heights serving in 6 continents. It has also established a distinguishable name among its competitors with a reputation of leading customer services. However, even as an established venture, the company needs to maximize its profits in order to stay in business and expand in to new territories beyond its conquered boundaries. A strategic analysis was carried out by our team to establish the company’s current situation. A SWOT analysis was performed to come up with three referenced, strategic alternatives. This alternatives are meant to act as a strategic guidance to the company in order to enhance growth. The strategic recommendation provided will improve and enable the business to cope with the competitors while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the
The basis for Value Creation of a classical hub-organised airline consists of its operating hub and spoke strategy. This system implies that all flights move along spokes connected to a hub placed at the centre. In fact all long-haul flights depart from the hub, to which all passengers are flown in the first place. Therefor it is necessary to own a heterogeneous fleet to secure an outstanding efficiency of the long distance flights. To have an attractive and used to capacity hub at one’s disposal is the linchpin of the entire operation. For this purpose it is extremely important for the airline to possess a high percentage of the airport’s available slots and gates which represent a distinctive key resource in this dynamic industry. Some of the major flag carriers own their capacities for decades through the protection by the grandfather rule which signifies a competitive advantage in this infrastructure restricted industry. Besides this, human capital can be seen as another crucial resource. This relates on the one hand to a capable and motivated workforce and on the other hand on the management. Foremost to cope with the extensive scheduling of a hub demands a high degree of management skill which decides of the success or failure of the operations. In addition the fact that hub-organised airlines control such a significant number of slots leads to a high negotiation power with this airport. Furthermore customer retention and loyalty is of great importance for a flag carrier, because their passengers are normally less price sensitive than low-cost carriers’ customers and are consequently able to fly more often. This goal can be achieved for instance by excellent customer service, frequent flyer programs and strong brand reputation. The mentioned capabilities apply best to long-haul traffic and business travel. The reasons therefor are that business passengers are willing to pay higher prices for more convenience and service on board which is also true for long distance flights where entertainment, food and service in general get more important. Accordingly this leads to higher yields for the airline. This does not fit for price-conscious customers, because they prefer cheaper flights.
Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government. Lufthansa had also gone through these tough times, but had resurfaced to become one of the worlds most profitable airline company. The company adapted a transnational strategy, seeking to achieve both global efficiency and local responsiveness. Lufthansa’s monopoly in Germany came to a halt with the creating of the European Union. All the EU member countries become one regional and therefore the European competition became, an increasingly a local competition. Lufthansa created its regional Hubs, to cater for its domestic market. But the availability of substitutes such as bullet trains and the Euro tunnel, made is necessary for Lufthansa to create short traveling time, customizations and quality standards in the region to achieve a competitive advantage. But outside the EU there are no substitute to air travels as such all the flag carriers are competing in the market, the international airline industry is a highly competitive environment. A new force has also emerged in the world of air travel, in the form of three Gulf airlines with jumbo ambitions. Within a decade Dubai’s Emirates, Qatar Airways and Eithad from Abu Dhabi have between them carried the capacity of two hundred million passengers (Micheal, 2010). The company had to go global and therefore adopted the international corporate-level strategy, where Lufthansa will ope...
In conclusion, EasyJet has been doing exceptionally well since its establishment in 1995. However, EasyJet can no longer rely on its past success based on increasing number of competition and operating in a saturated market. Furthermore, with the continuation of the market evolving, globalization is needed in order for a company to be successful. Therefore, it is appropriate for EasyJet to implement the recommended strategy of internationalizing into an emerging country, Nigeria, especially when EasyJet’s main source of flying an airplane is a resource of the given market. This way, EasyJet will be able to maintain a competitive advantage over its competitors.
Workforce diversity has become a reality in organizations. More organizations have written workforce diversity policies or programs. Although there is still no consensus on how to define workforce diversity, diversity policies and program are producing positive effects in organizations. Diversity in the workplace is a way of defining acceptable behaviors of employees. Diversity represents all the ways in which individuals are both similar and different. It involves a variation of characteristics such as: age, sex, color, religion, national origin, disability, or any other differences. Although diversity initiatives are common in the workplace today, this is due mainly to the federal government use of constitutional amendments, legislation, and executive orders, along with court decisions to interpret the laws for equal rights (Noe, Hollenbeck, Gerhart, & Wright, 2010). The way an organization defines diversity and how it manages its diverse workforce may determine its effectiveness.
Living in a country where it was founded by immigrants, diversity is everywhere you go especially in the workplace. There are many types of diversity; ethnicity, gender, religion and age just to name a few. Working in a diverse organization it can give you a taste of the real world, and what you will deal with wherever you go. There is so much diversity in the world today so it is a benefit to experience it in the workplace as well. You are given the chance to learn so many things from different cultures, why wouldn't you want to work in a diverse organization?
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements to the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion. In a dysfunctional time for the airline industry, most airlines, especially major carriers, are adapting the concept of "doing less with more." One low-cost carrier, JetBlue, is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully, has adapted them to its customer’s needs, and is succeeding because of this approach.
Ryanair is Europe’s largest low-fares, no-frills short-haul carrier. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating American Southwest Airlines’ business model. Since then Ryanair has grown substantially and successfully. The company currently has 146 routes to 84 destinations in 16 countries, and carries more than 15 million customers annually. Ryanair aims to be Europe’s largest airline in 8 years (www.ryanair.com).
David Neelman realized his vision of creating an airlines company that is focused on customer service by starting JetBlue. During the startup phase or entrepreneurial stage, typically most of the companies go through the activities of marketing the service and /or product. But Neelman, perceptive of the industry needs, went about raising enough capital before starting JetBlue, as airlines industry is a capital intensive industry. His entrepreneurial style and previous experience enabled him to identify the core value of the service “To improve the passenger experience at a low cost” that he wanted JetBlue to provide. Neelman wanted to utilize technology to bring better customer experience at a low cost. Some of the technological activities that JetBlue planned include state-of-the-art revenue management system, paperless tickets etc. His in-depth experience enabled him to identify the external factors that would affect the business such as simple check-in and boarding process, hassle free ticketing procedures etc. This emphasized his knowledge of adapting to the ever changing customer needs. Neelman instilled the culture of...