Global Business Environment (BM461) - EasyJet SWOT Analysis Report

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of EasyJet, a multinational airline company based in Luton, England. The introduction defines the global business environment and its impact on companies. The main body of the report delves into EasyJet's internal and external factors, outlining its strengths such as brand recognition, low-cost flights, and CSR initiatives. Weaknesses include high competition and the absence of free food service on short flights. Opportunities include route expansion and strategic partnerships. Threats encompass external market pressures, increased costs, and internal factors like labor strikes. The conclusion summarizes EasyJet's utilization of its strengths to overcome weaknesses and threats, while capitalizing on opportunities within the European market.

BM461 Global
Business Environment
(Portfolio Paper- 2)

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Global business environment can be referred to as the environment in the different
countries with the factors which are exogenous to a home environment of the company. These
are also called the macro factors which affect the decision making and influence the use and
capabilities of the resources (Nickles and et. al., 2019). The organisation chosen for this report is
EasyJet, multinational airline company headquartered in Luton, England. This report shall cover
the SWOT analysis and the key drivers of internal and external environment.
MAIN BODY
SWOT analysis is referred to as the compilation of the company's strength, weakness,
threat and opportunities which helps in developing the awareness of the factors involved in the
decision making of the business. In context to the EasyJet company, the SWOT analysis is
discussed below-

Strength
 The organisation EasyJet has a brand
goodwill for the low price flight in the
Europe which makes it a strength for
the company as it attracts some
business people and young travellers.
 The company has a good corporate
social responsibility strategies which is
geared towards reducing the impact on
the environment. The company has expanded and added
many routes across the Europe in order
to serve more customers and also offers
more flights to the people (Sanito and
et. al., 2020).
Weakness
 The company offers low cost flight
service to the customers which makes
the competition high as various brands
are fighting fir the same customer base.
This has resulted in price wars which
increases the concern of the company
over cost in order to slash the prices.
 Due to high competition from the
legacy barrier, the company has
altered their business model and also
offers low prices with the frills for
same routes.
 The company does not provide free
food service to the customers who
engages in less then 2 hour flights.
Opportunities
 EasyJet can expand their routes in new
regional market of the Europe in order
to attract more customer segment.
 EasyJet can offer travel package with
the tours in order to attract more
travellers. The company can look for strategic
partnerships with the airports to expand
its route and work on to offer more
travel option to customers.
Threats
 The cost pressure from external market
which is associated with the
environmental expectation, increased
cost of oil and the economic recession
may decrease the business of the
company (Vlados, 2019).
 The internal factors like strike of
labour are also a threat which may
demand more benefit or money which
may led the company to increase their
prices.
 The legacy airlines has become a
competitive force in this industry which
puts pressure on the EasyJet to increase

the service focus without any change in
the cost structure.
CONCLUSION
It is concluded from this report that EasyJet is a low budget airline which operates in
whole Europe and England. The company utilises its strength in overcoming the threat and
weakness and work on to grab the opportunities. The organisation has brand reputation, CSR
programmes and the expansion of routes as its major strength which is used to overcome the
weakness of high competition and threat of external and internal market.

REFERENCES
Books and Journals
Nickles and et. al., 2019. How Does the Unique Space‐Time Sampling of the SWOT Mission
Influence River Discharge Series Characteristics?. Geophysical Research
Letters. 46(14). pp.8154-8161.
Sanito and et. al., 2020. Economic and environmental evaluation of flux agents in the
vitrification of resin waste: A SWOT analysis. Journal of Environmental
Management. 270. p.110910.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.