Easyjet: PESTLE, SWOT and Porter's Analysis

RUNNING HEAD: Advance Management0
EASYJET
Advance Management
(Student Name)

Advance Management 1
Table of Contents
Executive Summary...................................................................................................................2
Overview of company................................................................................................................3
Strength......................................................................................................................................3
Weaknesses................................................................................................................................4
Opportunity................................................................................................................................5
Threat.........................................................................................................................................5
Financial Analysis......................................................................................................................6
PESTLE......................................................................................................................................7
Porter Five..................................................................................................................................7
Current News.............................................................................................................................8
Comparison with Rivalry...........................................................................................................8
Recommendations......................................................................................................................8
Strength......................................................................................................................................8
Weakness....................................................................................................................................8
Opportunity................................................................................................................................8
Threat.........................................................................................................................................9

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References................................................................................................................................10
Appendices...............................................................................................................................12
SWOT Analysis.......................................................................................................................12
Porter Five................................................................................................................................12
PESTLE....................................................................................................................................13
Financial Summary & Ratio Analysis......................................................................................14

Advance Management 3
Executive Summary
EasyJet is one of the leading airlines company at a global level. The company is mainly
known as one of the low-cost airlines. The company served more than 450 routes between 28
countries with over 182 aircraft. It is one of the fourth leading airlines in Europe. The
company served their services to forty six million passengers last year. Approximately 289
million people travel within one hour drive of an EasyJet carrier. It is forerunner in the use of
the internet for travel. EasyJet enjoys the advantage of low fare in the industry with a good
image of the brand in the aviation industry and these are the strengths of the company. In the
competitive aviation industry, Ryanair is one of the key competitors of EasyJet; the fare of
Ryanair is 50 % less than EasyJet. The earning of EasyJet is based on the season; this is the
major drawback for the company which the company needs to resolve. There are certain
opportunities which are waiting for the company to exploit such as market growth, increase
in the business passenger in near future. At the same time, EasyJet has certain threats such as
an increase in the price of fuel and so on which need to be taken certain steps by the
management of EasyJet. The financial performance of the company is efficient in a
comparison to other competitors ((Mayer, Ryley and Gillingwater, 2015). The company is
gradually growing which is a positive point for the company. The intention of the report is to
represent an independent assessment of this organization which covers the external analysis
of the company.

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Overview of the company
The EasyJet airlines company is known as the low fare based airlines in the airport of
London- Luton. EasyJet operates frequent services for their business as well as leisure
passengers; it also served more than 500 routes between twenty-eight countries with over 182
aircraft (Farouk, Cherian and Shaaban, 2017). EasyJet was funded by Greek Cypriot Stelio
Haji-loannou who is an entrepreneur, but in the recent it is listed on the London Stock
Exchange and the Easy Group owns an only small portion of the stake. Approximately, 6000
people are employed by the company in which it includes 1800 pilots as well as 3300 cabin
crew throughout Europe. In last year, the company has served 46 million passengers as well
as it has counted as one of the fourth largest airlines in Europe with number one in air
transport network (Mayer, Ryley andf Gillingwater, 2015). The company has initiated the use
of the internet for the travel. The BMIbaby, Buzz, Ryan air and MyTrabelLite are the key
competitors of the company in the UK. Germanwings, Air Berlin, Virgin Express, as well as
Hapag Lloyd Express are or might become the key competitors in the light of future
expansion plans. In recent, the company offers 125 routes from 39 airports of Europe as well
as it operates 72 aircraft (Mills, 2016).
Strengths
Strong Reputation and Brand Awareness
The company has a great reputation in the market of the airline industry. Most of the
customers prefer to travel via EasyJet which enhance brand awareness among the other
customers. The EasyJet has already enjoyed their perception of brand in the recent years
(Lawton, 2017). The company already spread their awareness about brand particulary in the

Advance Management 5
UK, but the company has now planning to spread to other more countries (McLachlan, James
and Hampson, 2018).
Pricing
In the competitive environment, EasyJet has a great advantage of their price structure. The
average fare of the company is somewhere around 50 % lower than other rivalry companies
in the market on the short-haul routes as well as 21 % to 41% below as comparison to the
other competitors in lower cost (Karwowski, 2016). Moreover, the extremely dynamic
management system of revenue of EasyJet adjusts their price of tickets according to the level
of demand to target maximum customers and maximize the revenue rather than to charge the
low fare in a continuous basis.
Financial Performance
Over the past few years Easy Jet has enhanced their financial performance, under the new
managing team of Carolyn (CEO) McCall and CFO Chris Kennedy. The management of the
company target a minimum return on capital employed of twelve percent which also includes
capitalized operating leases on the capital base or 15 percent excluding the operating leases
(Jackson, 2016). The company has a strong balance sheet and generation of cash as well as
the return that exceed the cost of capital that make them different in the industry of airlines
globally (Teker, Teker and Guner, 2016). In September 2012, the company has attained
ROCE of 11.3 percent with involving operating leases or 14.5 percent ex-operating leases
that are just diminutive of their targets, but contentedly in front of their cost of capital
(Holloway, 2017).
Weakness
The cost base is not low against competitor