EasyJet: A Comprehensive Analysis of Business Environment Factors

This report provides a detailed analysis of EasyJet's business environment, focusing on the market structure within the UK aviation industry, characterized by an oligopoly. It examines the economic factors influencing EasyJet, including fuel prices, exchange rates, and government policies, and their impact on the airline's operations. The report further explores the effects of Brexit, such as increased border controls and tariffs, on EasyJet's business, as well as the impact of the COVID-19 pandemic on passenger demand and financial performance. It also highlights the company's strategic responses to these challenges and potential future growth strategies. The report concludes by emphasizing the importance of adapting to changing market conditions and economic indicators to maintain competitiveness and achieve sustainable growth in the aviation industry. The report also discusses the potential for economic drops in demand for passengers during COVID-19 pandemic, on which there is varied loss analysed in recent periods.

Contemporary business
environment

Table of Content
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Market structure within UK in which Easy Jet operates.............................................................3
Economic factors within UK that affects business of Easy jet...................................................5
Impacts of Brexit on business operations in company................................................................7
Impact of COVID 19 on Easy Jet...............................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Contemporary business environment can be understood as vast competitive market place
that keeps on changing at very fast pace with varied new scale objectives, internal as well as
external business factors. Easy Jet is one of the prominent brand within UK aviation industry
having large scale airlines operations expanded into more than 1000 routes, 30 countries. The
report will be researching market structure within UK in which Easy Jet operates and the varied
economic factors that are variably bringing on competent scale impact. Research will further be
explaining economic factors within UK affecting business of Easy Jet and varied synergies of
larger scale targets. The study will be further discussing impacts of Brexit on business operations
within Easy Jet, steps taken by brand to evolve on dynamic business standards for strategic
development. It will also focus on impact of COVID -19 on business operations within company
and how new strategies can be taken for competent scale goals within longer time run.
MAIN BODY
Market structure within UK in which Easy Jet operates
Easy Jet is British multinational low cost airline group brand headquartered at London,
which operates domestic and international scheduled services on over 1000 routes which are
expanded into more than 30 countries. The airline industry of UK in which Easy Jet operates can
be characterized by Oligopoly market structure, a form of imperfect competition in which there

are limited number of firms dominating dynamic competitive industry. Oligopoly firms have
wide range of market powers in setting products by establishing various output levels where,
Easy Jet is United Kingdom based company. The company operates approximately 156 airports
in across 33 countries creating competitive market range structure (Zahari and Romli., 2019).
Oligopoly is market form dominated by group of large sellers that result in various forms
of collusions, that reduces market competition which then leads higher efficiency into
commercial industry domains actively. The characteristics of oligopoly market structure are few
sellers who control all or most of the sales in industry and barriers of entry, where it is difficult to
enter an oligopoly industry due to quality of services offered by brand already in industry. As
Easy Jet operates in Oligopoly market structure there is wide range of correlation and
interdependence prevalent within industry scenarios on which varied scope for functional varied
growth can be analysed innovatively. Group behaviour, nature of products and services and
intermediate demand curve are some factors which specifically gives rise to new scale innovative
business services and varied range of competencies commercially. UK has the third largest
aviation network around world and the second largest aerospace manufacturing sector where the
turnover is of around 60 billion. Contributing to over 22 billion in our GDP and almost one
million UK jobs that are directly and indirectly supported by it.
Easy Jet generates millions of data points every day, where aim is to use this to become
world’s best and the fastest leading data driven company. High set up costs and high R &D costs
are some main aspects where operations within oligopoly market structure within airline industry
is actively heading to expand into commercial work growth horizons. This has been also
identified as rising competitive economic push to overall productive growth into diverse scope,
where Easy Jet has been quickly expanding on new perspectives for target market structure.
Superior competitive market knowledge also expands within oligopoly economy structure on
which production costs, customers market base and incumbent defines structure gives
considerate competitive advantage over potential entrants (Lüdeke‐Freund, 2020). The Predatory
acquisition involves taking over potential rival by purchasing sufficient shares to gain controlling
interest, complete buy out aspects where with deliberate barriers regulators there is structural
growth. The Oligopoly market structure has been operatively expanding into varied work
horizons on which Easy Jet aims to reach in untapped customers market, for keenly expanding
into new scenarios for competent functional scale connectivity.

Economic factors within UK that affects business of Easy jet
Within external business environment, the economic factors within UK that affects
business of EASY JET play huge role to analyse future scale operations. Economic influences
such as inflation, exchange rates, interest rates, taxation and government expenditure within the
business cycles have many effects on varying aspects within UK airlines industry. Parameters
such as fuel price, interest rate and varying fluctuating currency rates have huge advanced
functional role on which evocative advanced scope relies for airlines company, by taking
strategic steps forwards. Fuel price in general always plays an essential role in world economy
where either increasing or decreasing fuel price affects deeply airline industry within UK, which
is also one of the biggest industry. Economic down turn people are more price sensitive in their
consumption where low fare strategy of Easy Jet is focusing to deliver customers travel at
cheaper prices (.Salvador, Barros, and de Francisco, 2020). The external economic factors have
been found as one of the widely essential aspect for scaled dynamic fundamental growth,
innovative business efficacy and to generate new vision oriented long term goodwill. Currency
exchange rates also affect company economically on large level, where the recent COVID-19
pandemic has lowered performance metrics actively. Economic factors have been found to be
widely shaping up larger scale business performance and new shaped performance parameters,
on which determining functional targets have been competently rising up for larger developed
efficacy horizons.
Aviation industry fuels up economy GDP competitively where UK aims to be
functionally divergent into new horizons for competent scale marketing domains, where Easy
Jet has scope to focus towards dynamic business grounds. There is also potentiality for effective
new market strategy growth where vision oriented new scale developed efficacy gives rise to
competent scale innovation, procedures of keen operational marketing structure and generate
specific scale connectivity. The airlines' industry has also operatively expanding within dynamic
business scenarios where aviation is specifically growing to raise up potentialities, where
economic factor plays profound role.
The economic factors have been heavily fluctuating in market scenarios where aviation
industry has been specifically facing losses in recent periods due to dynamic changes coming on
among larger scenarios. There are also potential economic drops in demand for passengers
during COVID-19 pandemic, on which there is varied loss analysed in recent periods. It has

been predicted that suit of loans, loan guarantees, wage subsidies and equity injection along with
raising concerns about competition and efficient usage of public resources are also impacting
economic strength actively. Economic factors such as increased fuel prices transportation, where
Easy Jet transports2.8 billion passengers and 48 million tons opens up new markets and provides
worldwide goods around the world. The aviation industry creates viable transportation network
access around globe specifically raising driven economic growth horizons. The aviation industry
faces severe economic threats specifically with rising fuel costs posing immense problem, where
Easy Jet stakeholders from employees to individual airlines to customers are feeling the effects
of rising costs. With rising economic recession and turmoil in Middle East there appears to be no
ease in rise in price of fuel, where experts predict prices will continue to rise within coming years
Low fare strategy of Easy Jet is exploiting demands of customers to travel at cheaper
prices and currency exchange rates can also affect economic parameters, with the recent decline
in the value of US dollar as compared to Euro is paying off. This also widely impacts on
consumers purchasing power expansion on which there is prolific growth analysed in recent
periods, where people opt for affordable travel choices. Supply and demand factors have been
competitively growing as one of the most essential economic parameter for diverse shift within
strategic decisions in airline industry. This also brings on demand for corporate growth structure
evolving efficacy on which Easy Jet has varied scope to yield on new informative technical
potentialities effectively. UK's aviation industry provides rapid transportation network, which
also brings on ground factors such as raising competencies widely essential for global business
expansion imperatively (Laukkanen and Tura, 2020).This has been developing demand for
competent business models, pricing strategies to be effectively monitored and revenue goals, cost
structures to variably grow within new diverse scope horizons.
Easy Jet has promising functional scope in new varied synergies for strategic
development growing within new directive market horizons and also to evolve on customers
oriented pricing strategies. Economic indicators trends when matched with airline passengers and
freight volumes generates specific strategies, where revenue passenger kilometres measure
volume carried by airlines. Easy Jet with growing new market position targets to reach untapped
market scenarios bring on scope for dynamic market reach, on which external factors needs to be
analysed essentially. Stable economy GDP rates play strong role in delivering new growth
aspect potentially for dynamic business standards services and to cope up with keen objectives

within UK airlines industry. A strong economy also gives stimulation to enhanced new work
functional diverse work goal parameters on which Easy Jet aims for reaching varied competent
scale revenue operations. Economic scale parameters play stringent role for dynamic keen
imperative scope into which, EASY jet has scope to operatively expand into scaled objectives
into new keen domains for potential revenue growth. Easy Jet has to focus on strategic growth
within economic evolved objectives for scaled revenue, keenly operatively expanding towards
which there is also scope to evolve on wider targets markets (Langley and et.al 2021).
Aviation industry potentially explores new integral paced up market scenarios on which there
has to be evolved up scope for keen goals executive where economic targets have been found to
be technically evolving on primitive horizons. UK's economy furthermore has stable
competitive growth in recent periods where there is promising functional parameters found to be
evolved on new domains functionally which raises up keen stable new targets actively.
Impacts of Brexit on business operations in company
Aviation and travel industry within UK are influenced by international trade and politics
where major changes relating ton regulation, trade and politics which will likely impact on
dynamics of various sectors globally. Outcomes of UK referendum has created uncertainty over
how UK and EU aviation sectors where vivid change over UK and EU aviation sectors will
continue to operate and collaborate in mutual beneficial way. There has been overhaul
development demanded with Brexit implementation on which corporate scale growth has been
emerged to be dynamically growing as widely essential aspect. The UK 2016 Brexit referendum
kicked off complicated and uncertain journey where businesses have been widely hit, where UK
aviation industry has been largely hit, with over 85 million people travelling by air between EU
and UK. Easy Jet with impact of Brexit raising variedly into new corporate scenarios have been
promisingly expanding into yielding factors among larger scale goals on which political factors
need to be strategically focused on (.Graham, 2020).
There has been also potential downfall among operations in EU on terms of existing
membership where airlines is owned and controlled by nationals of EU members states.
Increased border control and passenger management has been also impacted within varied range
of varied scope domains on which custom unions and single market has been found to be
strategically facing dynamic loss. UK Brexit decisions have been found to be also strategically
shaping new scale innovation for new raised up competencies, where uncertain collective

decisions have been shaken with Brexit. Impact of Brexit on business operations in recent
periods has been also expanded commercially where existence of tariff on imported goods and
introduction of tarrifs and additional border checks. This has been also integrally analysed that
slow down of supply chain operations and definite increase of administration and infrastructure
demands (Cosenz, Rodrigues and Rosati, 2020).
Airlines bookings within airline industry has been also found to be declining in recent
periods within varied horizons, on which Brexit has resulted in decline of revenue benchmarks.
Along with these identified factors there is also reduction within travels due to restricted
movement of goods for component functional scale growth, towards which research shows that
UK airline companies have been evocatively reducing operational efficiency. Business
operations and reduced average revenue drops once Brexit comes into effect and varied number
of flights in UK that has lead to passengers ticket cancellations. Financial consequences
connected to poor passenger experience also in airlines, where it is required to spend more
money on tickets and visas. Easy Jet has been yielding divergence dynamically among keen
informative parameters in recent time periods, where airlines industry has scope to operatively
expand into new diverse horizons as per demanded after Brexit implementation. The airlines'
industry in UK has been actively expanding into new scale advancement to cope up with Brexit
implementation on which dynamic informative synergies have large focused new competencies.
Furthermore, it has been also analysed that Brexit has affected travels within aviation industry on
corporate scale towards which there is varied informative scope raised on keen parameters for
keeping up competent innovation.
With the changing business scenarios in recent periods there is specific scale varied new
imperative demand fort airlines companies in aviation industry to focus on innovative smart
safety standards. There has to be wider reach consumer market strategies formed for keeping up
with competent scale business performance, imperative new advancement and also raise up keen
performance parameters for forming stringent formative scope to operatively expand (Akinola,
2020).
Impact of COVID 19 on Easy Jet
In the current scenario COVID 19 created enormous impact on the aviation industry
where Easy Jet has faced decline in revenue. This created effects on passengers traffic, air cargo
demand and also airport workforce. Subsequent national lock downs and quarantine restrictions

have caused disturbance and damage to many companies including Easy Jet. At that time
aviation has been facing drastic reduction of fleets, decline in demand and numerous people were
suspended from their job. When suddenly government shutdown countries borders and
prohibited cross country transportation then the quoted firm has suffered its first loss in its 25
years of history.
Moreover, in that case company is preparing for reducing its cost and boost efficiency
across the globe (Iacus and et.al., 2020). Further to cope up with the COVID 19 pandemic
company plans to cut off third of its strong workforce which leads to increase in unemployment.
For promotion of company Easy Jet offers its customers discounted tests of COVID 19. Due to
sudden changes chosen firm faces large loss of revenue and starts refunding cancelled flights
and ticket to conserve cash. UK's airlines reduced their available seat miles by 23% and fleet size
by 51-302 at the end of September which in turns result into high loss. Furthermore, aviation
industries hit by the virus so cutting jobs, going bankrupt and seeking bailouts when government
shut down travel. this in tuns result in ripple effects over the industry with slashing jobs.
In addition to this company updated its digital assets, including the app banner and
homepage and carried out email marketing notifications to 8.25 million accounts. Through using
this technique Easy Jet conduct proactive social media strategy which results into increase in
sales by 876% (Nicol and et.al., 2020). In that pandemic time for more relevant customer
engagement, firm was improving its performance by managing suppliers, empowering its crew
and by reviewing CRM lifecycle. Due to this pandemic quoted firms passengers numbers have
fallen to 4.2 million from April to September which shows reduction of 88.5% revenue.
However, COVID 19 pandemic also impact on declining in global airline stock prices. This in
turns indicates the overreaction of stock market investors, and traders in western countries.
This pandemic also shed light on the drastic decline in demand for passengers air
transport. After this pandemic Easy Jet had to follow new procedure and protocol, new travel
restrictions and travel willingness from passengers in which firm face more difficulty. The
pandemic resulted in global travel shutdown because of which employees were not able to go at
their work place. So as a result of this company is facing many problems because of limited
workforce. For adapting new safety and risk management tools cost of aviation industries has
increased day bay day which impact on the firm’s financial performance. In the end of above
discussion, it was analysed that COVID 19 created negative effects on Easy Jet. Majorly this

pandemic impact on profitability of overall aviation sector industry. In addition to this currently
consumers are not travelling much because of the current pandemic. Hence this results in an
additional cost for Easy Jet to stimulate consumer to travel.
With the new diverse scope business objectives demanded in COVID-19 time periods
there is functional demand within airlines industry to primitively expand into new operational
domains. Globally Easy JET has to focus towards dynamic business standards and also
expand commercially for wider promotional scenarios on which there is varied scope
determined for wider change. It can be analysed that new change implemented also functionally
shall be implemented by best marketing and development strategies impact fully for larger
productive business targets. Easy jet operations have to form new imperative scaled working
operational objectives for dynamic fundamental shift towards new demands in future working
scenarios. There has to be also focus worked on strategic demanded shift within keen long term
working goals for which airlines companies are competitively moving towards new changes
implementing within.
CONCLUSION
Report assessment has analysed in depth varied aspects of fundamental progression in
contemporary business world, where aviation industry is going under transformative phase and
keenly evolving into dynamic business grounds. The research within report has summarized
various aspects where Easy Jet as one of the big airline companies within aviation industry has
oligopoly market structure, where there are competitors present among varied market scenarios.
Above research has also concluded various economic factors such as increasing tax rates and
higher aspects of productive new diverse determinants shaping external economic factor. The
report has concluded impact of Brexit on airlines company functionally where there has been
decline analysed in recent periods towards new working parameters for strength goals. Research
has also delivered focus on varied working scenarios towards implications on decreased revenue
grounds within COVID-19 pandemic , and the new sanitation practices company is taking for
restoring consumers attention with wider range of goodwill.

REFERENCES
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Online
COVID-19 leads to first easyJet loss in 25 years - but digital customer experience is top priority.
2020. [Online]. Available through: <https://diginomica.com/covid-19-leads-first-easyjet-loss-25-
years-digital-customer-experience-top-priority
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