Strategic Management Report: Easy Jet, Brexit Impact, and Analysis

This report comprehensively analyzes the impact of Brexit on Easy Jet, a prominent British airline. It begins with an introduction to strategic management and Easy Jet's background, followed by a detailed examination of Brexit's effects on the airline industry, including a decline in market value and changes in trade practices. The report conducts an external analysis using the PESTEL framework, assessing the political, economic, and social factors influencing Easy Jet. An internal analysis, employing SWOT analysis, evaluates the company's strengths, weaknesses, opportunities, and threats. A competitor evaluation compares Easy Jet with Virgin Atlantic and Jet2.com. The report then discusses strategic choices for future perspectives, focusing on revenue generation and strategic formulations to overcome Brexit challenges. Finally, a strategic evaluation considers factors such as industry competition, new entrants, supplier power, customer power, and substitute threats. The conclusion summarizes the overall findings and implications of Brexit on Easy Jet's strategic positioning.

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Impact of Brexit:..............................................................................................................................1
External Analysis: ...............................................................................................................2
Internal Analysis: .......................................................................................................................3
Competitors evaluation:...................................................................................................................3
Strategic Choice:..............................................................................................................................5
Strategic Evaluation: ....................................................................................................................5
Conclusion:......................................................................................................................................6

INTRODUCTION
Strategic management is basically the process of planning as well as the development of
the strategic vision, fixing the objectives and thus formulating these strategies to achieve the
organization's goals.
Easy Jet Airline Company Limited is predominately the British airline, founded in 1995
and placed in Luton, England. It is listed in London Stock Exchange and thus is the constituent
of FTSE 250 Index.
This report addresses Brexit impact on airline industry of UK, PESTEL analysis of UK
airline industry, SWOT analysis, competitor's evaluation, Future growth of the Easy Jet after
Brexit and Strategic issues faced by Easy Jet.
Main Body
Impact of Brexit:
Brexit has a significant impact on Airline industry as well. Which has moved Ryanair with a
drastic effect of Brexit on it. The significant crisis arose in the various sectors including the
Aviation industry which moved the Airline market. There was a decline of market which went
down up to 7.4% which was around £257 million.
With the exit of the UK from European Union has drastically changed the scenario of the
Ryanair which can have an effect on the decreased sale of tickets, which has affected the
economical balance of the Ryanair(Ansoff & et.al., (2018)). It has affected the custom services
which helps the revenue generation of the Airline industry the use of privet jets are downgraded,
generating a low cost revenue to the Aviation industry. With the extinction of UK from the EU
has narrowed the path of the trade practices which includes the shipment of the goods which are
restricted by which trade practices are affected. Trading with international customers became
difficult with the exiting of UK from EU(Holloway, (2017)).
External Analysis:
External Analysis is the analysis carried out with including all the external approaches
which can affect the Airline industry, which helps in finding out the various factors which can
help in development and substantiality of the firm in Airline industry.
Political Factor:
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Various political reasons will affect the Airline Industry, the deal with various European
countries will be difficult which will lead to unfair trade practices with European countries.
Brexit will lead to unfamiliar trade and hinder of politics which will decline sales and profit
generation will decrease which will ultimately increase the price. The only profitability will be a
generation of more employment opportunity within the country(Kleymann & Seristö, (2017)).
Easy jet will have to make a deal with European countries with the exition of UK from European
Union.
Economical Factor:
Effect of Brexit on the economy of UK will be the rise in the price of various goods and
services offered in UK. There will be a rise in interest rates which will gradually decrease the
sales in the market. The fall of currency with a rapid decrease of values in UK. This will overall
affect the economy of UK. The product value will increase as demand increases. Which will
affect the economy of the country. Easy jet will have to pay more for the deal with the European
nation which was free of cost. This will create economic repulsion and economic crisis.
Social Factor:
There will be a drastic fall of the customers with the effect of Brexit. Which will decrease
the sales of East jet. The revenue generation of East jet will decrease with a decline of customers
which will affect the economy of Airline industry. Unfair cargo expenses will be charged from
the European countries which will affect East jet socially in many aspects(Lasserre, (2017)). This
will also create a positive impact on the Easy jet as more of employment opportunities will be
created. There will be social collaboration with many airlines of European union which will
create a job opportunities for locals.
Technological Factors:
Technological factors will be helpful in the generation of more clients if the Easy jets will
improve the technology. There is a drawback for the Easy Jet as many of the competitors are
technologically advanced. If East jet uses AI boot cap it will make company more advanced as
per the market competitor's. If the technological advancements are not met it will lead to the
technological decline.
Internal Analysis:
Internal analysis of Easy jet is carried out through SWOT Analysis. Internal analysis of is carried
out to evaluate the internal evaluation.
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Strength:
Company can extend his hands which can be beneficial for trade and Airline practices
which can be the strength of the East jet which will result in reduction in price and providing a
strong and trusted customer base. This will ultimately result in high revenue generation.
Weakness:
The weakness will be exit of non-British staff which can be a weakness as skilled
workers will be hard to find and will demand for a huge sum of money which will lead to decline
of strategies which are made in the past and will affect Easy jet in profit generation.
Opportunities:
Easy jet strategies to increase the sales which can bring more of customer base to the
industry which will help in the generation of revenue. Easy jet must focus on shipment for the
generation of revenue which will open up the channel to strengthen the revenue base of the Easy
jet. More of advertisements must be done in order to bring out more of sales.
Threats:
Threats to Easy jet will be the changed in the rules and policies of the Airline industry
which will be changed as per the norms of UK which will being about the changing behaviour of
Easy jet which can affect the working of industry.
Competitors evaluation:
factors Easy Jet Virgin Atlantic Jet2.com
Global Ranking Easy jet stands fifth in
the raking of the
British airlines. It aims
to be one of the best
in UK. It has a rating
of 6.2 in the ranking
standards of UK.
It is one of the finest
airlines in the raking it
stands on the top of
the British Airlines
industry. It has a rating
of 8.2 in the ranking
standards of UK.
Jet2.com stands fourth
in the rankings of the
Airline Industry. It has
a rating of 7.2 in the
standard rating of UK.
Quality of service The quality of service
provided by the
company is up to
average, but they are
not able to meet up the
demands of business
class there is lack of
airport facility which
affects the quality of
service of Easy Jet.
The quality of service
provided is excellent.
But the flight delays
are very often which
must be considered as
this affects the
customer base for the
industry.
The quality of service
needs to be improved
so as to increase
customer base and to
deliver the best quality
of service. The staff
needs to be provided
with proper training
and services facilities.
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Safety and healthcare Security and safety
service offered by the
Easy Jet must be
improved so as to give
a benefit to the
customers and provide
a secure airline
services. Healthcare
facilities must be
improved so as to
create a safe
environment for the
passengers which
minimised the risk.
Security and health
care service offered by
the Virgin Atlantic is
very much up to the
need of the customers
a fesable environment
is provided which
helps in better
treatment of the
business class and
celebrities which helps
in the development of
the good working
culture.
Security service
offered by jet2.com is
very much linent
which leads the lack of
business class
passengers. The
healthcare service
provided by jet2.com
is very much weak as
no attentiveness is
seen with the problems
faced by the
passengers.
cost The cost offered by the
company is fair but it
needs improvement in
strategy in order to
attract more customers
by offering various
offers and discounts to
the customers.
As the airline is
governed by the
British government it
offers a lowest price
which leads to more of
happy and satisfied
customers. There are
many offers and
discounts availability
for the customers
special advantage is
given for the premium
customers who are a
part of airline family.
Jet2.com has a high
pricing strategy which
can affect the customer
base of the industry.
Business class are
more satisfied than the
economic class as
economic class prices
are higher as
compared to others.
After evaluation Easy jet needs to improve the strategy which can improve the customer base of
the Easy Jet which will help in improving customer base.
Strategic Choice:
Future perspective:
In order to improve the strategy which will help in maintaining the Brexit losses.
Company must focus on the various strategies which can help in the revenue generation form the
other countries by giving attractive offers to other sub continents which helps in the
development of the financial base. Organization must improve on the various strategies which
can influence market which can help in the revenue generation of the firm(Mallikarjun, (2015)).
Present perspective:
As Easy jet is one of the finest company in Airline industry they must strategies in order
to meet the needs and demands of the industry. Therefore to overcome the Brexit situation the
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company must merge with the government or must take a loan from government and apply a
strategic formulation which will help in coming out of Brexit situation. Funds can be used for
other investments to come out of Brexit crisis(Moutinho & Vargas-Sanchez, (2018)).
Strategic Evaluation:
Strategic evaluation is done on the following factors:
Competition in industry
As per this analysis more the competition in the industry the more it will be the fall in the
power of the Easy Jet. This leads to competition offering better price for the deal and this leads
to more chances of shifting of customers.
Potential of the entrance which are new
The entrance of the new competition in the airline industry is less. So it is a advantage for
Jet Airways to charge prices which are reasonable. Negotiating terms and conditions which are
better by providing better deals to the customers(Pearlson & Saunders, (2019)).
Power of the suppliers
Under this the how much easy it is for the company to switch to the other supplier in
order to buy the input of the product and also how much the cost of the switching from one
product to other. If the suppliers are less then this will lead to more dependency towards the
supplier by the company(Percy, (2016)).
Power the customers
It is all about how much customers does the company have and what is the cost of finding
a new customer. If the customers are few it means they are having more negotiation power which
can affect the pricing strategy built up by the organization(Wu, (2016)).
Substitute threat
It also depends a lot on substitute available for the company if there is high substitute
then there will be charging the customer competitive price. If the substitute are lower than this
will result in charging higher prices by the Easy jet for the same product. So it is must for Easy
jet to check the prices charged by the other companies what are the chances that the prices will
go up or down.
Conclusion:
From the above study it is concluded that Brexit has an impact on the Airline industry in
UK which has led to the decline of Airline industry. Airline industry has faced the losses due to
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Brexit. Low costing of ticket fare and a high price of fuel has affected Easy Jet which led to the
stopping of many flights. There are various factors which affected the overall performance of
Easy Jet. The evaluation of internal and external factors which helped in the strategic
formulation of Easy jet. A strategic evaluation will help in increasing the efficiency of the Easy
jet which is done with future perspective. Evaluation of various factors which help in evaluating
the strategy.
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REFERENCS
Books and Journals
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Holloway, S., (2017). Airlines: Managing to make money. Routledge.
Kleymann, B. & Seristö, H.,( 2017). Managing strategic airline alliances. Routledge.
Lasserre, P., (2017). Global strategic management. Macmillan International Higher Education.\
Mallikarjun, S., (2015). Efficiency of US airlines: a strategic operating model. Journal of Air
Transport Management. 43. pp.46-56.
Moutinho, L. & Vargas-Sanchez, A. eds., (2018). Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Pearlson, K.E. & Saunders, C.S., (2019). Managing and using information systems: A strategic
approach. John Wiley & Sons.
Percy, L., (2016). Strategic advertising management. Oxford University Press.
Wu, C.L., (2016). Airline operations and delay management: insights from airline economics,
networks and strategic schedule planning. Routledge.
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