The strategic position of Turkish airline Analysis 2022

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Strategic analysis

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Introduction
Easyjet is the low-cost air carrier which is located in the United Kingdom and is operating in that short-haul
airlines. There are around 820 routes in which operations are performed and are providing the services in many
countries (25).
Q1. The strategic position of Turkish airline
Pestle analysis
Political factors
 Many terrorist attacks were faced in main
destinations including Nice, Paris, Turkey, and
Brussels (1).
 Operations are carried in various countries making
exposure to several political conditions and risks.
Economic factors
 The negative impact was faced by the earnings
made in the company due to the impact of Brexit
29).
 There was growth which was attained because of
many economic factors and they helped in raising
market capacity (30).
 Lower rate of interest and fuel also provided
various advantages.
Social factors
 There are strikes in the traffic controller which
creates issues (28).
 Broader nature of the society and class structure
affected the position of the company (3).
 The benefit was received because of leisure
interest (29).
Technological factors
 The changes in technology are taking place at a
fast pace and it is not possible to cope with them.
 The competitors have used various new
technologies which is a demerit for the company
(2).
 The cost is increased in order to introduce new
techniques in Easyjet.
Environmental factors
 Delay and cancellation of flights are faced due to
adverse weather conditions.
 Laws related to environment pollution also require
compliance which increases the costing of
business.
Legal factors
 Certain breach of contracts is made and by that
penalty is to be paid by the business.
 Law concerning the safety of passengers is to be
complied with effectively (31).
Figure 1 Cash flow bridge (5) The cash that has been
generated from the various
operating, financial and
investing activities are
represented in the graph.
581 m is generated from the
operations of Easyjet (4).
The fluctuations which are
made in the financing and
investing activities are also
represented in the graph.

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Figure 2 Fleet planning (6) The planning
for the number
of aircraft
which will be
operating in the
coming years is
provided. It is
identified that
the maximum is
403 and 283
will be the
minimum
number of
fleets (7). In
2019 332
aircraft will be
flying.
Porter’s five forces
Bargaining power of buyers: The producers in the
industry are few and this results in the availability of
lesser choices for buyers. The income is also low
and that also made the bargaining power to be low
(27).
Bargaining power of suppliers: Weak power is
available with the suppliers due to many of them in
the market (9). The products should be standardized
and with low cost to switch.
The threat of substitute: There is a weak threat
from substitutes as few of them are available and
that too at a high cost which is not preferable for
Easyjet (26).
The threat of new entrants: The cost which is
required to operate in the aviation industry is very
high and that makes the new entries difficult in the
industry (10).
Rivalry among existing competitors: There is
positive growth in the industry and in such
situations, the competitors focus on their growth in
place of dealing with the competitors (9).
Figure 3 Tegel operations (8)
The seats that are available and the load factor for the
year 2018 are identified and the average length of the
sector is 836 km. The loss amount to 152 m is reported
in 2018 from operations performed.