Case Study on Strategic Management : Easyjet Airline

Added on - 06 Jun 2020

  • 14

    pages

  • 2470

    words

  • 15

    views

  • 0

    downloads

Showing pages 1 to 4 of 14 pages
STRATEGIC MANAGEMENT: Case study easyjet
Table of contentsBackground Easyjet.........................................................................................................................3External environmental analysis of Easyjet Airline........................................................................3Competitor Analysis: (3 major direct competitors to easyjet).........................................................6Internal strategy analysis :( SWOT analysis)................................................................................10Easyjet’s strategic choices and future strategic trajectory.............................................................11A critical evaluation on the selected future strategy for easyjet....................................................12Conclusion and Future Recommendations....................................................................................12Bibliography..................................................................................................................................14
Background EasyjetEasyjet is a British Airline company which operates their business under low-cost carrier model.Easyjet has adopted different strategic plan for expansion of their business since itsestablishment in the year 1995 (easyJet.com, 2017). It operates in both domestic andinternational route in more than 30 countries. The organization took strategy to develop strongposition in leading airport of European market. Easyjet offer their customer a better servicewithin affordable fares. Keeping the fare low is one of the main strategies which are being takento give a tough competition to all the leading competitors in European market. In order to keepthe fare low , the airline authority have taken few excellent strategy such as increasing number ofseat per aircraft which automatically helps to gain the expected profit. Along with that easyjetensure to keep the maintenance cost low for earning maximum amount of profit. This reportassesses different strategies which are being taken by Easyjet for business development. Furtherit discuss about the internal and external factors which are impacting the business of easyjetAirlines.External environmental analysis of Easyjet AirlineMacro environmental analysis of Easyjet will help the organization to understand it position inthe market. There are four factors which will be discussed under the external environmentalanalysis and those are Political, Economic, Social and Technological factors.PoliticalLike many other British airline company inthe year 2016 Easyjet faced a verychallenging political year. This had a verystrong impact on their business environmentas well. The planned exit from EU hasimpacted much industry which includesEasyjet. Leaving EU has changed the shape ofBritish economy. Especially airline have beenmajorly influenced by the decision of takingan exit from EU, since major intra-Europeanroutes has significant base in EU. Those
routes were major resources of revenuegeneration of most of the British Airlines. Asa result Easyjet has to come up with newstrategic plan.Since most of the intra European routes arepart of EU countries hence in order tomaintain business either Easyjet had to changeits headquarter to some EU country or had tosale their business to some EU nationals inorder to retain rights to fly cities likes , Rometo Berlin (Sampson, 2017).This political change has a greater impact onthe business of Easyjet as most of their routesare based in EU nationals.A positive political change which was indeeda great new for Easyjet business approval ofHeathrow runway as the third runway.Easyjet understand that expansion of thirdrunway will directly help their low costbusiness patter once the government of the Ukchooses to expand the capacity of theHeathrow Runway. Therefore , impact ofexternal political factors are visible on thebusiness of Easyjet AirlinesEconomicThe uncertainty following EU exit haseconomically impacted Easyjet and manymore airlines. The annual report of Easyjetsuggests that the depreciation of poundsterling has negative influence on the business
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Download This Document