Table of ContentsIntroduction........................................................................................................................3Competitive advantage......................................................................................................3Contribution of the company to the airline industry 1000.................................................7Conclusion.......................................................................................................................10Refrence List....................................................................................................................112
Introduction EasyJet is a low-cost airline based at London operating domestic and internationalairlines that has made gained remarkable competitive advantage by providing cost-advantage (affordable fares) facilities to the customers (Easyjet.com, 2017). Thecompany is committed towards positive contribution to the society meeting demands ofthe customers and facilitating safety mechanism (risk-assessment). In this study, effortswill be made to analyze the competitive position (competitive advantage) of thecompany highlighting its contribution towards airline industry by applying differentanalytical tools. Competitive advantage Airline industry in UK provides substantial economic benefit to the nation contributing£51.966 billion in the GDP. EasyJet, one of the leading low-cost airlines has ensured itscompetitive position by giving preference to the following areas. Low-fare comparing to the competitors by rejecting frilling cost Monitor and manage safety related risk Enhanced customer services making it easy and affordableIntegrity, simplicity, values of safety Diversity within the organization Contribution towards environment Strong relationship with the partners Corporate social responsibility (includes Unicef program)All the above mentioned areas has ensured a strong hold in the UK airline market that istough to chase by the competitors such as Ryanair and Wizz (Beaumont, 2015). Inorder to know the competitive forces within the industry and to evaluate the competitiveadvantage of the company the following analytical tool is applicable. Porter’s five forces High: Red3
Medium: greenLow: yellowForces Rating Competitive rivalry HIGHBargaining power of the customers MEDIUMThreat of new entrants LOWBargaining power of the supplier MEDIUMThreat of Substitute MEDIUMTable 1: Rating competitive forces(Source: Beaumont, 2015)Competitive rivalry: There is extensive competition in the industry due to the presenceof several competitors providing offering same service to the customers. As the industryis sluggish in nature and reached, maturity helps the company to stay in the business.Due to the brand identity, competition may be lessened for instance EasyJet can betaken that provides low cost services. Stronghold of the supplier also fuels up thecompetition and big firms tend to take cost advantage mitigating the powers ofcompetitors. Bargaining power of the customers: In UK, buyers enjoy low switching cost due topresence of many options as per the choices (Bush and Starkie, 2014). Mostimportantly, each airline targets a particular niche to attract the customers of thatsegment providing them with exclusive services. Different airline companies usedifferent strategies such as focus on cost or focusing on other aspects (safety) ofservice, therefore customer may not switch resulting in low or medium bargaining powerwithin the airline industry. Threat of new entrants: high investment and operating cost minimizes the threat ofnew entrants within the industry. Most of the companies regardless of EasyJet enjoycost advantage making it hard for the new entries to enter the market. On other hand,customers always opt for popular airlines that makes hard for new entries to grabattention. 4
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