Contemporary Business Environment: EasyJet Market Structure, Economic Factors, Brexit, and Covid-19 Impact

CONTEMPORARY
BUSINESS
ENVIRONMENT

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
1. Market structure of UK in which Easy jet operates.................................................................3
2.Economic factors affecting EasyJet..........................................................................................4
3. Impact of Brexit on business operations of company..............................................................7
4. Impact of covid 19 on the business of company......................................................................8
Conclusion.......................................................................................................................................9
REFERENCES..............................................................................................................................11

Introduction
Contemporary business environment is the environment which have more competition in
the market and these markets also changes fastly. Thus, owners of the business should be able to
adopt opportunities in the market. For that owners have to bring developments in the business in
order to survive in the highly competitive market (Barr and et.al., 2018). To cope with
contemporary business environment company comes with modern marketing techniques along
with producing innovative products and of good quality.
Easy jet is the multinational airline company which is having its headquarter at England.
Company offer low price flight tickets which is helpful in attracting large audience. Easy jet is
worldwide known for its innovation. As company believe that to beat the competition innovation
is must. This study will discuss market structure of UK under which easy jet is operating.
Economic factors will also be discussed within the UK which affects business of easy jet. Further
it will explain impacts of Brexit on the business operations of company. This report will also
discuss impact of covid 19 on the business of easy jet.
Main Body
1. Market structure of UK in which Easy jet operates.
Airline industry is going through massive changes in terms of structure and market
segmentation from past few years. Low cost carrier market has hurt established market. Easy jet
is operating in the oligopoly market structure. In the oligopoly market there are few firms which
dominates the industry. It is the kind of imperfect competition (Airlines and Oligopoly Theory.,
2021). Although airlines industry use oligopoly strategy but innovative company find out their
way to enter the market and the same is done by easy jet. In 1980 to control the competition open
skies legislation is implemented by government with the objective to liberal the air travel. In the
airline industry competition is growing day by day which results in low profit margin by the
company.

Airlines also went into bankruptcy because of massive competition and less profit margins. In
order to increase the profits easy jet constantly come up with innovative services. They give
good quality of services to their passengers which helps company in getting good sales. Internet
has also cut down ticket prices because it eliminates the agents. But through internet customers
can easily compare the price of tickets (Rudawska and Zhanna Belyaeva, 2018). Customer goes
for low pricing and does not remain loyal with the company. Easy jet is the successful airline
company and witnessing good profits. In this industry every firm decide the prices and the way
they want to carry advertisement. To enter this industry is not easy because it will require lots
capital to started airline. To beat the competition easy jet provide differentiated services and
overcome all hurdles.
This will help company in beating company's like British airways which have more market share
as compare to easy jet. To cut the prices company offer less cabin crew member in their airlines
(Boone, Kurtz and Berston, 2019). Those customers got attracted towards the company who
cannot pay more price for flight tickets. By adopting less pricing strategy easy jet are able to
increase their market share. Less prices attracted customers who have earns less. Nowadays
people wanted to travel by air because it saves time and company's like easy jet are making it
possible by providing low cost travelling. Market structure of UK is highly competitive when it
comes to airline by easy jet found out their way to survive in the market. Company operates in
oligopolistic market where few firms control complete industry. Actions of every company is
dependent on each other. Services which is offers by the company are almost same to changes in
the prices will only help them in getting more market share.
Easy jet is the example who has crossed high entry barrier of the industry and increased
competition in the industry (Matović, 2020). To offer cheap air tickets airline does not provide
food in the plane. This will help company in reducing the cost of the tickets. Those people also
got attracted who was thinking that for themselves travelling in plane was dream. Easy jet focus
on providing affordable travelling. Company also force airlines like British airline to reduce the
prices. As British airline knows that if they want to survive in the market than they have to
reduce the prices.
2.Economic factors affecting EasyJet
A British multinational airline group Easy Jet provides services in both domestic and
international areas being second largest budget airline in Europe. Today it has become a major