Business Environment of Easy Jet

Business environment
of Easy Jet

Table of Contents
INTRODUCTION...........................................................................................................................3
Discussion and Analysis..................................................................................................................3
Various Market Structures..........................................................................................................3
Economic factors of UK and its effects on Easy Jet...................................................................5
Like Impact of Brexit on Easy Jet's business in UK...................................................................6
Impact of COVID19 on Easy Jet................................................................................................6
CONCLUSION................................................................................................................................7
RECOMMENDATIONS.................................................................................................................8
REFERNCES:................................................................................................................................10
Books and Journals:..................................................................................................................10

INTRODUCTION
Business environment refers to all internal and external factors which affect business in
various ways. There are various factors which can affect business in several ways such as needs
and expectations of customers, employees, management, activities of government and many
more. These factors of business environment affect the profitability of business (Amankwah-
Amoah, Khan and Wood, 2020). Easy-Jet Plc. is Multinational Corporation which is a low cost
airline in London Luton Airport. It provides employment to about 15,000 people in Europe but
importantly in UK. This report contains business environment of UK to operate business there by
Easy-jet. In order to know the business environment it is necessary to ascertain market structure
of Airline Industry of UK. This report also contains impact of Brexit on the business of Easy Jet.
The COVID19 pandemic has a great impact on the business or airlines which is discussed below
with some recommendations about all the challenges faced by Easy-Jet ( Mosteanu, 2020).
Discussion and Analysis
Various Market Structures
Market structure shows the way in which various firms are differentiated( Arbabi,
Sobhiyah and Danai, 2020). In business economics, market structures are majorly of four types
that are perfect competition market, oligopoly, monopoly and monopolistic market.
(Source: Market structure, 2021)
Illustration 1: https://businessjargons.com/market-
structure.html

Perfect Competition – Perfect competition is that type of market structure in which there
are so many buyers and sellers who deals in homogeneous products with no or less difference. In
these types of market prices are fixed by market forces such as demand and supply for the
products and many more. Here prices are set by industry as a whole ( Aziri. and Ismaili, 2020).
Monopolistic Competition – It is an imperfect competition in which deals in not perfect
substitutes of products by many sellers. The products in this competition have many sellers with
products such as clothing but they are different from each other due to quality, taste and
branding. The companies who enjoy this type of competition are not price taker so they have
partial control over the prices ( Betti and Sarens, 2020).
Oligopoly- It is a market structure where there is less number of firms which are
operating in the market of the industry and enjoys majority of market share( Mugurel-Alin,
2020). These type of firms are neither price taker nor price maker. They generally follow price
rigidity and avoid price wars.
Monopoly- It is a situation in market in which there is only one seller with no substitute
for the product in the market. They are generally price maker as they are the controllers of
industry ( NGUYEN and LUU, 2020).
Market structure of the UK's Airline Industry
In airline industry there are limited numbers of firms who are engaged in this business. It
has imperfect competition because of few numbers of organisations to dominate the market
(Orlova, Nogueira and Chimenti, 2020). That is why it is characterised in oligopolistic type of
market share. As oligopoly compete with their rivals in industry with similar products and every
action of organisation is noticed by their competitors. Hence, competitors react on any measure
taken to enhance market share in the industry. The firms in this industry are interdependent and
ensure that they do not lose their market share for any reason. As it is a large industry which
needs high investment in order to enter into the industry. Therefore, airline industry has barriers
for new entrants ( Brozovic, 2020).
It requires high capital investment to build capacity in order to compete with a well
established organisation in the industry say Easy Jet. Since its establishment Easy Jet has seen
various expansions and grows with the help of various acquisitions( Khoshtinat and Shahabadi,