Case Study on Strategic Management : Easyjet Airline
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Added on 2020-06-06
Case Study on Strategic Management : Easyjet Airline
Added on 2020-06-06
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STRATEGIC MANAGEMENT: Case study easyjet
Table of contents Background 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 Easyjet Easyjet 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 Airline Macro 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. Political Like many other British airline company in the year 2016 Easyjet faced a very challenging political year. This had a very strong impact on their business environment as well. The planned exit from EU has impacted much industry which includes Easyjet. Leaving EU has changed the shape ofBritish economy. Especially airline have been majorly influenced by the decision of taking an exit from EU, since major intra-European routes has significant base in EU. Those
routes were major resources of revenue generation of most of the British Airlines. As a result Easyjet has to come up with new strategic plan. Since most of the intra European routes are part of EU countries hence in order to maintain business either Easyjet had to changeits headquarter to some EU country or had to sale their business to some EU nationals in order to retain rights to fly cities likes , Rometo Berlin (Sampson, 2017).This political change has a greater impact on the business of Easyjet as most of their routes are based in EU nationals.A positive political change which was indeed a great new for Easyjet business approval of Heathrow runway as the third runway. Easyjet understand that expansion of third runway will directly help their low cost business patter once the government of the Ukchooses to expand the capacity of the Heathrow Runway. Therefore , impact of external political factors are visible on the business of Easyjet AirlinesEconomicThe uncertainty following EU exit has economically impacted Easyjet and many more airlines. The annual report of Easyjet suggests that the depreciation of pound sterling has negative influence on the business
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