Easyjet cost strategy essay

Easyjet is one of the most successful low cost short-haul ones in England as well as European. There are some different methods about the way carriers hold their flights.

Easyjet cost strategy essay

Date Introduction and History EasyJet is among the most popular and successful airline businesses in Britain. The company belongs to Stelios Haji-Ioannou who is also its founder in It operates on a low-cost carrier model internationally and locally serving more than routes in about 30 countries Corporate.

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EasyJet thrives on the concept of price elasticity influencing the demand for short-haul air. This implies the more people are likely to fly upon reducing the cost of flights.

The company has grabbed a significantly large market share in Europe and some of the customers is shifting from other bigger airline to EasyJet.

The company invalidates the traditional airline concept, that reducing flight costs will limit the revenue. Instead, EasyJet is using the reverse of this concept as a competitive advantage in the European airline market.

They also target at standardizing and offering consistently reliable products and flight charges to leisure and business markets within Europe.

Easyjet cost strategy essay

By point-to-point services, it is clear that EasyJet is neither in the business of carrying people or food business. Rather, the company capitalizes on a cost-effective mass transportation business. Moreover, the major niche for this company falls to leisure and business markets.

Competitive Analysis In order to discern to in-depth the forces driving the airline industry, using the Porters five competitive forces the best approach.

Ruthless Essay Contributor Super-cheap Procedures Exploited

The Threat of substitute There prevails a decimal competition from other modes of transport such as trains and vehicles in Europe. This limits the local market for the airline venture. However, for time and reduced prices, EasyJet is able to overcome this cloud of competition both locally and internationally outweighing the fastest cars and swift trains.

Otherwise, international routes are too long for cars since the roads are highly coiled and winding making gas charges very high for vehicle transport Businessrevieweurope. The Threat of New Entrants Airline industry requires very high capital investment, a factor that inhibits efforts of other potential entrants into the market.

Easyjet cost strategy essay

The power of Suppliers Airline transport consumes huge amounts of fuel on daily basis. Aviation fuel cost is proportional to the costs of oil and neither EasyJet has the ability to alter this provision of the business macro environment.

Another challenge is the rapidly advancing aircraft technology. Commercial airplane manufacturing companies such as the Airbus and Boeing are shifting to production of mass carriage plane and improving current plane features.

To keep up with the safety and good value service mission, EasyJet is forced to keep on updating her plane inventory Harrison Acquiring new planes has a significant impact on the annual income the company generates from its operations.

Similarly, these two commercial plane manufacturers are the major sources of plane parts, thus enjoy the monopoly benefits of setting high prices and this is not only a burden to EasyJet but also a risk factor.

An expansion move by the company gives her more power over the suppliers Harrison The Power of buyers Loyal customers are the base for the success of any business enterprises. EasyJet runs on a low-cost strategy in order to make its services affordable to her customers.

The company markets herself to a wide market scope through aggressive internet sales. Price discrepancies can significantly manipulate the minds of the buyers, bearing in mind people like cheap responsive services that suit their budgets Postp.

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The operators in the airline business are limited to the Civil Aviation Authority that provides for various protection measures to diverse consumer levels. EasyJet is not an exception to these regulations and most of them require a huge investment to implement.

Other potential competitors include Virgin Express, Air Berlin among others that have future expansion plans.The essay will firstly introduce the organisation easyJet. Secondly the essay will explain about how easyJet uses its operation strategies and its competitive priorities. Finally the essay will discuss the most important operation decision and explain it further in detail.

easyJet is a well known low-cost airline which operates in several European countries and has. And this essay focuses on where easyJet is now, where easyJet is going and how easyJet get there on the level of both business and corporate strategy.

According to Porter’s generic strategies, based on the characteristics of the operation of easyJet, we are concluding the strategy the easyJet employed is focus cost leadership, which is called. Finally, the concept of price discrimination is one of particular importance to this essay given its data content of airline pricing.

We will write a custom essay sample on. Supply and Demand Easyjet. or any similar topic only for you. We will write a custom essay sample on. Supply and Demand Easyjet. EasyJet (who follow a low-cost strategy.

How the present strategy impact on the triple-bottom-line in business. 5. Key challenges (10%) - challenges should be discussed in the context of current business environment with appropriate example 6.

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Pricing strategies of low-cost airlines: The Ryanair case study Ryanair was one of the first airlines in Europe to adopt the low-cost model in Easyjet, Ryanair's main low-cost competitor, was founded in a good low-cost strategy can never be replicated in all its details—and this could account for the carriers that.

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