Contemporary Business Environment: Easy Jet Case Study

Contemporary
Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The market structure in the UK within which Easy Jet operates................................................1
The economic factors within the UK that affects the business of Easy Jet.................................2
The likely impacts of Brexit on the business operations of the Easy Jet....................................3
The impact COVID-19 on the business of Easy Jet....................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
A contemporary business environment is an extensively competitive market environment.
In recent phase of time, contemporary environment is characterised as environment of
uncertainty, ambiguity volatility, dynamic and complex. Easy Jet Airline is one of the renowned
name in leading low cost airline in UK (Boone, Kurtz and Berston, 2019). Easy Jet is
successfully operating its business since 1995 but due to hitting of global pandemic COVID-19,
first time they have witnessed financial loss. This is thus, contemporary market is full of
uncertainty and unpredictable. Easy jet is firm comes under the oligopoly market structure of
UK. This report revolves around the internal and external environment of Easy Jet and impact
of global pandemic on its business performance. Furthermore, this report outlines the impact of
Brexit on operations of Easy Jet. Identification of contemporary business environment issues
helps an organisation for developing future focused perspective. This is because in order to
survive in dynamic competitive market a Easy Jet need to formulate business strategies to
recover from the financial losses.
MAIN BODY
The market structure in the UK within which Easy Jet operates
There are four market structure in UK : Monopoly, Perfectly competitive, Monopolistic
competition and Oligopoly. It is analysed that the UK's low cost firm Easy Jet with competitive
interaction and low cost pricing strategies operates under the oligopoly market structure. The
oligopoly market is dominated by 4-5 number of suppliers in which actions of one firm
influences the another firm. In oligopoly market structure the firms to price- fixing according to
group or either according to one firm rather than from market (Niemimaa, 2019). Profit margin
in this are higher than normal. Firms under oligopoly are barriers to new entrants, slow
innovations and also have legal privileges, and valuable customer loyalty to survive. Oligopoly
market firm have objective to maximize the profit or to increase the market share. Number of
suppliers in oligopoly market are less which gives them benefit of no competition and firms
operates successfully without any disturbance. This fosters the relationship and collaboration
between the firms to earn maximum profit. Firms under this market structure supply common
good and services under the fix price. In oligopoly market if any firm lowers its price to increase
the sales growth the company would be in price war with other respective firm, hence commonly
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