Essay Title: 

EasyJet

March 28, 2016 | Author: | Posted in business, mathematics and economics

EasyJet

[Name]

[Institution]

[Instructor]

[Course]

EasyJet : Report on Strategic Competitiveness

Executive Summary

Aim of the Project

The aim of this report is to evaluate the overall attractiveness of the budget airline sector in the context of business and competitive environment . Then identify the strategies persuaded by the founder of easyJet over that period , which allow him to compete successfully and position the company to respond to the challenges of external environment facing company

Objectives are to

analyse strategic developments taking place within the European airline [banner_entry_middle]

br industry in general , the budget airline sector and in easyJet

analyse the competitor information

analyse the internal factors

identify the existing strategies

analyse the possible strategies to respond to potential challenges

Methodology implemented to conduct analysis includes

STEP Analysis

Porters ‘ five forces

Strategic group

Competitor analysis

BCG Matrix

Cost leadership

Critical Success Factors

Core Competencies

Strategy express by where we now ? where do we want to be ? and how are we going to get there

Value Chain Analysis

Mintzberg ‘s strategy is the perspective

The report addresses the main strategic external issues facing low cost carriers such as high level of competition , low profit margin , no real barriers of entry , and other economical , social and political factors which decides if company is going to prosper . The report has concluded that easyJet has addressed and tackled them with proper strategies which allowed easyJet to emerge as one of leading players in the low cost sector . Furthermore , easyJet is in the position to embark upon the challenges facing him today

Operational Review

External Environment

Industry Overview

The European airline sector has historically been dominated by national flag carriers ‘ state-owned or state-sponsored . The single aviation market within the European Union was achieved by gradual liberalization between 1988 and 1997 . The growth of Low Cost Airlines in Europe can be seen as the direct result of that process . The European airline industry can be characterised as an imperfect oligopoly , in which a few carriers dominate in long distance flights , while several dozen small carriers compete for short-distance flights . The IATA estimates that the number of passengers travelling between countries in Europe will grow from 176 million in 1999 to 215 million in 2003 with average annual growth of 5 .1 low-cost airlines which carried 4 of all domestic and international passengers within Europe in 1999 will increase that a figure to 12-15 by 2010

The main problem within the industry is the large number of carriers and substantial over capacity in many markets-were increased by the events of September the 11th . This is likely to lead to accelerated restructuring and consolidation within the industry . Experts believe that there is not enough room for the current multitude of carriers in Europe , and that these will be consolidated to two or three airlines with others being absorbed or restructured to focus on regional traffic This represents a major opportunity for `no frills ‘ carriers to increase their market share

The `no frills ` market within Europe is relatively immature compared to the us… [banner_entry_footer]

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