Impact of Market Structure, Brexit and COVID-19 on EasyJet's Business

This report provides a comprehensive analysis of EasyJet's business environment. It begins by explaining the market structure within which EasyJet operates, specifically highlighting its position within the oligopoly market in the UK. The report then delves into the various economic factors impacting EasyJet, including competition, recession rates, demand and supply dynamics, income levels, taxes, and trading policies, with a particular focus on the changes brought about by Brexit. Furthermore, the report assesses the likely impacts of Brexit on EasyJet's operations, such as disruptions to air service agreements and increased border controls. Finally, it analyzes the significant impact of COVID-19 on the airline, considering factors like changes in pricing, customer base, unemployment rates, and the need for future planning and adaptation to maintain revenue and customer satisfaction. The report concludes by emphasizing the need for EasyJet to adapt its strategies to navigate these challenges and maintain a strong market position.

Contemporary Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Explain the market structure in the UK within which EasyJet operates.................................3
2. What are the economic factors within the UK that affects the business of EasyJet?..............4
3. What are the likely impacts of Brexit on the business operations of the company?...............6
4. Analyse the impact COVID-19 is likely to have on the business of the company?...............7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment has to be well maintained and good collection of external and
internal working of the company has to be existing so that the organization would be able to
make sure that there are right working. Easy Jet is operating since 1995 which is having its
headquarters in Luton, England (Weitzner, 2017). Easy Jet has gone in loss since 2020 which is
not a good factor for the portfolio of the company therefore the organization will have to
understand the impacts which are present in the market and make decisions accordingly. There
are 14,000 employees which are existing in the company but there were more employees which
the organization has in the company as of 2018. The company has been able to make a place for
themselves in the market very quickly because of the pricing and working which is going to
make the standards of the working be higher. The report is going to discuss the impact of
COVID-19 and other economic factors which are impacting the performance of the organization
which is going to make sure that the company is being able to adapt the organization to be able
to gain the right working again in the market.
MAIN BODY.
1. Explain the market structure in the UK within which EasyJet operates.
Market structure ; - Market structure refer to the process in which the market works and it
shows the nature and degree of the competition market for the services and goods. The structure
of market goods and services are on the basis of there nature and degree of working. It is crucial
for the organization to work in the market according to there strategy and choices they are
working for there product and services. There are different type of market structure in which the
organization can work and develop there operation to achieve the business and operations.
Easy-jet works in the airline industry and it is important for the business to develop a process of
providing the services of high standards to the customer to gain the competitive advantage in
market. Easy-jet works in the oligopoly market structure in the business.
Oligopoly market structure refer to the market structure where there are fewer firms and no other
firm can impact on the sustainable advantage for them. Oligopoly market works to develop the
standard of quality and services to customer and also allow them in development of increase
performance due to lack of firms in the business market to capture the interest.

Easyjet works in the oligopoly market which help them in increased performance as there are
fewer firms for the business and also the less division of market in between the customers to gain
a advantage of profitability. The advantages to the firm as working in the oligopoly market of the
UK are that the company can earn high profit and are the only choice to the customer to get the
benefit in market and also in the business profit margin (Belyaeva, 2018). Providing the different
facilities help in improving the quality of working for the customer as this will also increase in
the process of working for the customer and organization as well. The lesser fear of the
competition in the oligopoly market is one of the strength of the business the EasyJet are getting
and it is also helping them in reaching the business objective they are working in. they are
developing the strategy to increase the process of workplace and develop strategy to get the goals
achieve.
There are a lot of issues the organization is facing due to the oligopoly market structure which
include that they are one of the fewer choices they have and are a difficult to forge spot in market
(Bansal and et.al., 2018). The fix prices are bad for the customers and are also developing the
process of workplace. It is important for the business to develop the strategy to increase the
working so that they can get the result in the situation of Covid-19 situation which the
organization is facing in today's market. There are less of option for the business choices of
customers and the lock down is affecting the business due to the customers unable to contact and
take the services form the organization (Amankwah-Amoah and Wang, 2019).
2. What are the economic factors within the UK that affects the business of EasyJet?
There are a lot of factors which are going to impact the working of an organization which have to
be well maintained and effective working has to be existing so that the company would be able
to make sure that there are right working (Rezaee, 2020). The competition in United Kingdom is
increasing but the recession rates in the company are improving very slowly which is not a good
factor for the companies. Demand and supply of the products and services in UK are improving
which have to be analysed and decisions have to be made accordingly so that the company would
be able to make the right decisions. Income level of the clients has to be worked upon so that the
organization would be able to price and improve their services accordingly. Easy Jets is doing
that very well which is why the company has been able to get the right attention and working
which is going to make sure that the organization is doing very well which is going to make the

company have higher branding and value in the market. Taxes and trading has to be done
between countries so that there is going to be better decisions and working which is going to be
present for the company to have so that the organization would be able to gain the right attention
in the market. After Brexit there are a lot of changes which the company has already got in and
these have to be evaluated and improved upon effectively so that the company is going to have a
stable economic factor. Easy Jet has to analyse the external and internal factors to be able to gain
the right attention and effective working so that the company would be able to make sure that
there are right actions which are being taken. Global existing of the company is high which is
why the company would not take time to be able to gain the right attention of the clients again in
the market after COVID-19 (Corey and Wyatt, 2020).
COVID-19 has got a lot of change in the pricing and other factors of the company which
have to be understood so that the company is going to maintain their customer base which is
existing. Unemployment rates in the country were improving but there are a lot of factors which
are currently changed. The company has lost on a lot of employees which were present in the
company which is making the company not be able to gain the right attention and working in the
market which has to be understood by the company. Inflation in the country was not existing for
a long run but currently it has increased and this factor has to be well analysed and improved
upon so that there is going to be effective working which is going to be present. Control and
monitoring is high in Easy Jet which is going to make sure that the company is being able to
have higher operations and working which is going to be present. The economic factor after the
pandemic situation have changed and there are a lot of changes which have taken place and they
have to be well analysed and worked upon so that there is going to be better operations and
working which is going to be existing. Future planning has to be done in the company so that the
company would be able to make the right decisions and working which is beneficial for the
company to have. Diversity and equality is present in the company as well which is going to
make the costing and cutting of the economic factor be present so that the company would be
able to make sure that there are higher functioning and efficiency which is going to be present.
Clear direction has to be present in Easy Jet to be able to gain the right economic factor again in
the market which is going to make the standards of the company be higher as well. Travellers are
going to increase again as soon as the situation of pandemic is under control completely and the

company would be able to get back the revenue and investment for being able to make the
satisfaction of the clients be higher (Halbert and Ingulli, 2020).
Trends and demands of the clients are changing with time and they have to be
implemented by the company which is going to make the pricing and other economic factors of
the company be changed as well. Government is going to change the taxes and policies as well
which have to be well balanced by the company so that the organization is being able to make
the right reputation and stronger portfolio in the market which is a good factor for the company's
long run in market. Asset value in United Kingdom has improved and changed as well which is
going to make the company have higher pricing but the organization is still pricing their
customer services at a low price so that they can maintain the customer base in the market which
is a very important factor for the company to have. Exchange rates have been almost the same
from years which is why the company is not changing the rates as well which is going to make
sure that the organization is being able to have a stable working and functioning. Revenue of the
company has reduce since 2019 because of the limited travellers which the company is having in
the market which has to be maintained. A lot of loyal and trained employees of the company had
to be dismissed which is going to make the standards of the firm get affected which is a very
major issue. Demand and support from the government is very important for the company to
have so that the organization would be able to gain the right attention and customer base in the
market. Programs and more training programs and as well as recruitment has to be done in the
organization so that they would be able to make sure that the clients are getting the right
attention and working which is required by the company.
3. What are the likely impacts of Brexit on the business operations of the company?
Brexit have impacted the business of the Easyjet and it is important for the business to
develop strategy which can improved the process of working in the boarders but the restriction
and change in policies impacted the revenue and growth of the business for the airlines.
Disruption of air services agreement : - there are a lot of issues the company are facing due to
the Brexit in the market. It includes the process of disruption in the agreement they already had
and the Brexit caused them the air agreement disruption. It is important and for the business it is
crucial for the business of the airline to have a proper agreement which they ned to develop with
the help of increased performance.

Increased boarder control and passengers management : - Brexit affected inter border
control and it is impacting on the business of the workplace which can further affect the EasyJet
as it is crucial for them to develop pa process where they are developing the increase use of
getting the less access in different country. It has impacted the single union and the customer
base of the organization which cause them issues in the business profit. The Covid-19 impact
already effected the working of the business and the situation is affected with the Brexit as well.
Movement of goods : - Brexit affected the decision on th transportation of the goods and the
movement of the goods in the countries which is crucial for the business and it is important for
them to develop the process so that the movement of goods can develop which is impacted due
to the Brexit in the market for the countries. The Easyjet is one of the leading brand and the
Brexit impact the movement where they are required to control the processes of working and
also get to develop procure process of working (Siriwardana and Dissanayake, 2018).
Decline in revenue of airlines : - Brexit made policies inter boarder and the movement of the
goods and services as well which impacted the revenue of the easy jet and it is important of the
business to develop the process by the control over the issues they are facing by this and it is
important for them to make the use of the situation. The Covid-19 impact is critical for the
business and the working of the company get affected in the revenue and working.
4. Analyse the impact COVID-19 is likely to have on the business of the company?
The impact of Covid-19 on the airlines and the business of the country as the country is
facing the recession in the market which is not a good sign of good market and is critical for the
purpose of organization to make sure that they made policies of the working in the lock-down
and Covid-19 pandemic. No customers for a longer period cause them issue in there revenue and
the impact of Covid rises as the people are not having the money to travel and the empty planes
are costing much to the business. There are lack of customers in the market and the retention rate
of the customer fall to a huge level. It is important for them to develop the working by providing
them safety and security at the services so that they trust and improve there working in the
business.
 The impact of the Covid on the airlines is that there are no customers for a period and it
cost them huge loss in the business which are controlled by the removing of the

employee. The pandemic and the lockdowns affected to the business and it is critical for
the business to develop a process working in the pandemic.
 Recession in the UK economy is one of the major factor which the company need to
consider while making the strategy in the market. They need to develop a pricing strategy
and other safety credential which need to match to the guidelines of the government. It is
important for them to work in the pandemic and for that they need to increase the
resources and also provide the necessary working to be full fill.
 Company decrease there employee to survive the pandemic and also it impacts in the
business which they need to hire again as they need to cover the revenue for the loss they
are facing in the business. It is important for them to develop a process so that they can
make a better impact on the overall process of the business and recovered the loss.
 Development in the facilities and the requirement to be filled by the organization so that
the business can be developed in the process of organization development.
Covid impacted the recession in the UK government economy which impact the overall
business which are working in the country and the airline are getting impacted as they were shut
down for months and the cost which they faced were impacted on there overall business. It is
crucial for them to manage the working in the organization and the change in the policies and
full filling the government guideline to start the business cost the airline a lot of loss. They are
facing lack of customers and the people are afraid to go out and travel. The international
boarders are shut which is causing them issue in the business and it is crucial for them to develop
a process where they can work and develop an increase working in the organization. Easyjet
change there working and provided safety and security with the maintenance of the workplace to
develop a process in the pandemic situation (De Silva, 2019).
CONCLUSION
It is important for the company to analyse the important factors which are existing in the
market which is observed from the above report. The business has to make sure that there are
right working and functioning which the company is maintaining so that the organization is
having a good working and standards for themselves. There are a lot of external factors which

are impacting the working of the company which has to be managed so that the company is
having a good stability which si going to make the company be able to have higher operations
and working which is going to make the standards and branding be higher. Cutting and planning
is very important for companies in market to adapt and implement so that they would be able to
gain the right attention and working which is present. Easy Jet is one of those airlines which got
impacted by COVID-19 the most and is struggling to be able to find stability in the market which
is going to make sure that the organization is having a stable working. It is very important for the
company to make sure that there are right actions and improvement which the company must
have. The company has expanded itself in a lot of new destination as of 2018 which requires a
lot of investment but the company did not make that much of revenue and this is one of the
major reasons why the company is struggling in the market. It is very important for the company
to make sure that there are right actions and improvement which the company is having for itself.

REFERENCES
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