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Strategic Management Assignment - Easyjet

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Added on  2020-10-04

Strategic Management Assignment - Easyjet

   Added on 2020-10-04

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Table of ContentsIntroduction......................................................................................................................................1External Analysis of Airline Industry..............................................................................................1Internal analysis (SWOT) of EasyJet Airlines business strategy.....................................................2Strategic directions tools for EasyJet...............................................................................................3Strategy selection and justification..................................................................................................3Recommendation and Conclusion...................................................................................................5References........................................................................................................................................6
Strategic Management Assignment - Easyjet_2
IntroductionThere are certain businesses which prevails in business environment and every day thereis introduction of the new one. With aim of earning profit and to expand their market each ofthem have a business strategy which considered as an outline map of the activities which has tobe performed by the organisation so that they can achieve all the business goals and targets. Thisreport will be dealing with strategic review of Easyjet which is an small scale airline company(Freeman, 2010). There will be analysis of its internal and external environment thus evaluatingthe strategic choices of the company. EasyJet is a British airline which comes under low cost carrier model. It operatesdomestic and international scheduled services on over 820 routes in more than 30 countries.They have the employee number of 11000 people who are from different parts of Europe mainlyfrom UK. This company has grown through certain collaboration which it has done withdifferent organisations. They have the revenue of £4.669 billion and an operating income of £495million. They have been successful in gaining income of £427 million in year 2016. They use thebusiness strategy or business model taken from South-west Airlines. They have adopted thismodel so that they can also adopt cost cutting measures like not selling connecting flights orgiving complimentary snacks on board (David, 2011). EasyJet is the only airline in UK who isoffering such services at such low cost and most of their competitors are from different parts ofthe world. Delta Air Lines, Southwest Airlines, Ryanair Holdings and American Airlines Groupsare some of the major one. They can get tough competition from substitutes like train and car onthe domestic routes. External Analysis of Airline Industry.Political:- The airlines industry is highly affected by political regulations both in theterms of operations and the ownership as some of them are also owned by national governments.There might be dispute among two countries so it will be harder for the airlines to fly over theanother country which does not have good relation (Stead and Stead, 2013). As UK has voted infavour of Brexit which will impact the airlines industry as there might be changes in “Freedomof the air” between the countries which was adopted by EU legislations. EU has been focusingon the practice of overbooking by the flights and this will impact the business of low cost flightslike EasyJet. 1
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