Conclusion 17 7 . With that in mind, the commonalities that are shared between the clientele that make up the respective classes can easily withstand analysis. Making it easy, enjoyable and affordable to travel again and again for business and holidays. Good Essays. Ahlstrom, D & Garry, DB 2009, International Management:Strategy and Culture in the Emerging World, Cengage Learning, California. This essay on EasyJet Companys Strategic Analysis and Marketing was written and submitted by your fellow Our approach - Thomas Cook Group Thomas Cook Group consults with a wide range of stakeholders, individual and organisational, on sustainability matters. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. All rights reserved. The tools of stakeholder analysis mean that this is not a major problem for management. Explains that jet2 is a low-cost operator with close links to the main four travel agents, thomson holidays, thomas cook, first choice, and my travel. Explains that wage inequality is determined by analyzing the statistics of how much airline employees are making and the cost of living where the airline employee is employed. Easyjet Analysis. IvyPanda. Beyond the companys industry innovations, the company should continue investing in practices which are customer friendly. Profit before tax - underlying ( million) 123.1 191.3 (35.7)%. the risk free rate is typical given the current economy and market risk premium. Learn More. Seite auswhlen. Explains how the monetary and fiscal aviation policies exercised in the airline industry were greatly impacted by the catastrophic events of september 11, 2001. Strategy Development and Communication Using organization vision and strategy, senior management must substantiate communication for transformation and the need for change. The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. Explains that most union employees cannot be fired without "just cause." Protect and build on easyJet's strong brand, Provide an easy and reliable customer experience. Explains that the valuation model assumes an increase in passengers, which increases the load factor to almost 90%, creating a higher future revenue stream, resulting in higher margins when compared with the other valuations. The company was established in 1995. a strike occurs when the two parties fail to reach an agreement on the wage rate because of the differences in interests and responsibilities of each part. According to the Ansoffs matrix, the airline should try to penetrate new markets with the existing products and services (French 1986). Explains that valuation 2 assumes an increase in passenger traffic, bringing the load factor close to 90%, with a 5% decrease in cost per passenger. Continuous improvement in the digital interface like introduction of new Bag-sizer on the easyJet app, 1. Opines that trade unions would want easyjet to keep within their employees' rights by paying them their correct wage and treating them with respect. Click on the link below to read more.--> We have a clear focus on building strong relationships with customers to create more sustainable, long-term revenues leveraging quality, innovation and digital. Economic Value Added) rather than accounting profit is more important for companies with few fixed assets (such as software companies and consulting firms) than capital-intensive companies such as chemical companies and vehicle manufacturers. This ration may appear to be simple but disaggregation of the same into various components gives a detailed picture of major players of the rate of return on equity capital. This can be attributed to the nature of economic trends plus the growing technological innovations. easyJet's updated framework continues to build on its competitive advantages - an unparalleled network and market positions, efficient low cost model, well-known brand and strong balance sheet - positioning easyJet to deliver sustainable and disciplined growth and returns for shareholders. A business is found to be polluting a local river. 2. In the recent past, the airline has been carrying out an evaluation regarding its fleet. Development and justification of an Easy Jet strategy map. EasyJets ability to offer point to point travel means that it does not have to worry about onward connections for passengers and their baggage, further simplifying its operations. they aim to be considerate to their neighbour while delivering value to customers. This ensures the customers are satisfied with the nature of operations which are in progress. Additionally its total revenue per seat grew by 5.1&capacity measured in seat flown. monopolies are not absolute; they are constrained by competing. 2008 2007 Change. The Stakeholder Map: For making a stakeholder analysis. EasyJet is a British low cost airline company that flies both domestic and international routes. These preferences have lowered the landing charges (Jones 2005 ). This model focuses on five forces that shape competition within an industry; these include; the risk of entry by potential competitors, the intensity off rivalry among established companies within an industry, the bargaining power of buyers, the bargaining power of the suppliers and the closeness of substitutes to an industrys products. This has in turn led to an increase in the customer base and subsequently many passengers have resorted to this airline. This detailed SWOT analysis of easyJet aims to analyse the strengths and the weaknesses of easyJet. they understand the importance of workers doing their duties in conducive conditions, but they champion for the rights of employees against management unjust exploitation. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. These monopolies denied other interested stakeholders from actively taking part in the industry. Furthermore, the expected growth patterns which have been developed by the IATA estimates that the European scheduled passengers are likely to grow. Explains that first class attracts high-income earners who are concerned with a high level of service and enjoy an air of exclusivity. Stakeholder maps provide four different types of value: 1. This report is shared in order to give you an idea of what the complete Covid-19 Impact Analysis Report will cover after purchase. Aggressive competition at Berlin airport and Tegel ramp-up, 1. easyJet has refined its strategy to drive our purpose of making low-cost travel easy. Analyzes keen, strand, maignan, and mason's research on indirect taxes on international aviation. The x-axis represents the level of influence or power of the stakeholder over the success of your project. Explains that hicks proposed that trade unions and employers try to find stability in terms of cost and benefits of a work industrial action when making concessions during bargaining. Explains that strike is viewed differently by the parties of employment, the unions see it as an investment, because the longer it the higher the possibility of them settling higher wage rates for their members. easyJet seek to strengthen their position in key markets as the competitive landscape evolves. Deliver strong on-time performance, which is consistent with the focus on slot constrained, congested airports. September 26, 2020. https://ivypanda.com/essays/easyjet-companys-strategic-analysis-and-marketing/. Lastly, changing market tastes affect the market trends. the increased passenger traffic is a result of lower fares and fair macroeconomic conditions. Identify your stakeholders . Explains that there are unions in almost every conventional business, from engineering to banking, nasa to us airlines. A stakeholder is any individual or group who can affect or is affected by the actions decisions policies practices or goals of the organisation (Freeman 1984 25). In this case, EasyJet faces the same challenge as a company in Europe. Describes the living wages at the port of oakland at http://www.iir.berkeley.edu/livingwage/pdf/portoak.pdf. It is based on the low-cost, no-frills model of the US carrier Southwest. Use Creately's easy online diagram editor to edit this diagram, collaborate with others and export results to multiple image formats. EasyJet's strategies & evaluation 12 4.1 EasyJet's Stakeholder Analysis 12 4.2 EasyJet's Stakeholder Mapping 12 4.3 The Generic Strategies Matrix 13 4.4 Evaluation of Strategies 14 4.4.1 Suitability 14 4.4.2 Acceptability 15 4.4.3 Feasibility 15 4.4.4 Sustainable Competitive Advantage 15 5. Continuing to drive product conversions by improving the way ancillaries are sold and product merchandising. Appreciate and Manage Uncertainties and Reservations Need Strategic Analysis for this company? Stakeholder mapping in 4 steps. Opines that trade unions would want the charity to treat their volunteers with the same amount of respect as theyd treat them as permanent employees. This is because the airline has been able to capture key routes in Europe. There are several business strategies which this company has been employing in order to achieve its objectives. Focusing on improving the control and decision making across operations. (732)548-0013/0015. In addition to Boston Matrix can position BAs business in terms of short haul (cash cow business) and long haul (star business). What makes easyJet stand out is the flexibility which it offers its customers thus it leaves the customers with no choice but to stick to it. easyJet is a British airline, headquartered in London Luton Airport. "EasyJet Company's Strategic Analysis and Marketing." easyJet continues to optimise its network to ensure capacity is deployed in the markets where the strongest demand and returns are seen. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. (Figure 1.1) is a representation of some of the multifaceted relationships between BP and its publics/stakeholders. I coach senior executives to effectively sponsor change, I enable people managers lead their people through change and I design and deliver engagements that create behaviour change. student. Explains that trade unions want to protect the rights of employees in a business. This allows you to easily see who can influence your project and how each person is related to the other. In this case, this airline has got a strong management team which has been working towards ensuring that the airline has got a major share in Europe. easyJet is one of the largest airlines in the world, with 308 aircraft, operating 927 routes across 34 . EasyJet airlines cuts costs through value pricing. The intensifying rivalry among the established companies Thus the key aspect that has made this airline stand out is the brand name that it has managed to uphold. Every business has stakeholders involved. why do airlines go bankrupt?. Explains that to calculate the valuation of ryanair, future revenues and costs, as well as the firm's current accounting value, must be calculated. Explains that ryanair's valuation in the long-term, known as its economic value, is the major issue facing the company. Opines that pressure groups want easyjet to continue to create a brand name for themselves and help the public trust their business. its recent vow to become the world's first major airline to operate net-zero carbon flights has been received by stakeholders with much enthusiasm. Essentially, speed entails the ability which is characterized by responses to the specific customer demands within the least time possible. they would also want the company to do well profitably. competitive advantage requires cost leadership, differentiation, and focus strategies. Furthermore, EasyJet owes a part of its success to its unparalleled network of operating in 1,051 routes in 2019 as compared to 979 in 2018, and covering 56 primary airports in 2019 as compared to 51 in 2018. Home; About Us; Get Involved; Contact Us; who are the stakeholders of easyjet All rights reserved. Ted's Bio; Fact Sheet; Hoja Informativa Del Ted Fund; Ted Fund Board 2021-22; 2021 Ted Fund Donors; Ted Fund Donors Over the Years. Modern aircraft fleet with unparalleled network. Investing in new generation fleet to replace older types drives economic value, lowering fuel and maintenance costs. Many passengers have credited the management of this airline for such an ingenious venture and success in the past (Barnes 2008). Explains that the airline industry has long attempted to segment the air travel market in order to effectively target its constituents. Explains that there is no clear classification of the airline industry because it serves a broad purpose. Opines heathrow airport should be a world-class hub and influence government policy and airport owners in continued support. 3. The second table gives highlights on the financial status of the company in the year 2012 and the anticipated financial aspects in the year 2013. easyJet Airline Company Limited Registered in England with Registered number 3034606; subsidiary of easyJet plc Registered in England with registered number 3959649 Registered Office: Hangar 89, London Luton Airport, Luton, Bedfordshire LU2 9PF. Passengers have confidence in the airlines security measures. The SWOT Analysis for EasyJet Plc is presented below in a matrix followed by detailed analysis: Strengths. Explains that union members benefit from collective bargaining power to negotiate with employers on their behalf. -, Delta, Other Air Lines Sue Dutch Government Over Proposal to Cut Flights to Schiphol, Airlines file suit against shrinkage of Amsterdam airport, Delta, Others Sue Dutch Government Over Amsterdam Schiphol Airport Flight Cap, CHINA EASTERN AIRLINES CORPORATION LIMITED. Barnes, D 2008, Operations Management: An International Perspective, illustrated edn, Cengage Learning EMEA, California. It is also worth noting that all the booking on this airline are made via email or telephone. This method is incorporated into a strategy map that will form the basis for the development of a balanced scorecard later on. Many stakeholder mapping models use charts to . Opines that if there were many homeless dogs, they'd want the charity to pick up and care for them as it helps the community and the dogs within that community. ba plans to reduce co2 emission by 50% by 2050 and reduce noise per flight by 15% by 2015. Strong operational efficiency leading to a low-cost model. Other strategic innovations which have made this airline to stand out have included ticketless travel and lower fares (Jones 2005 ). 3.2. they are very active in the political arena at the local, state, and federal levels. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Grow your business. The threat which faces this airline is the availability of substitutes. Explains that hicksian's model reckons the time frame in which a strike has to last in order for the parties to reach concession in terms of the wage rate. Building your map. Explains the decision-making process in place, reflecting the first three principles and giving due weight to the stake holders. These options should include various aspects such as the introduction of other services and products as well as seeking partnerships which would buoy the airline in times of crisis. Powerful Essays. Improving scheduling processes to drive crew productivity, also benefitting from the seasonality of our network. Secondly, the airline is not in a position of controlling the cost of fuel in the industry (French 1986). Holistic Analysis Opines that jet2 must capitalise on customer trends by flying to more destinations within europe. easyJet is building a network of key cities, broadening their presence across Europe. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Furthermore creativity and innovation are crucial when it comes to maintaining an edge over the other companies. Unions were once seen as an organizer of labor rights but they play a key role in management as well. Analyzes how easyjet has a few stakeholders who influence the company's decisions, such as customers and employees. This is to in effect offer consistent and reliable products at reasonable and fair prices in the European routes. Your privacy is extremely important to us. The remaining section of Strength is available only in the 'Complete Report' on purchase. Are you looking for a report which is not covered on our website? It has reinforced its position in short-haul travel aviation increasing its market share from 6.5% to 7.6%. This is done before a project is started. Which two stakeholders will this cause conflict between? easyJet aims to deliver a seamless and digitally enabled customer journey at every stage and is continuously working to enhance the customer experience. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Stakeholder mapping is part of the stakeholder analysis process. IvyPanda. The company has been able to deliver the ongoing savings because of its strategic cost reduction programmes including cost reduction projects for all cost lines and fuel & FX hedging programmes, fleet programmes that include fleet up-gauging and modern aircraft fleet, and operational resilience programmes involving data initiatives, schedule refinement, standby aircraft and first wave efficiency. These include the emerging technological trends in the market. This implies that it is important to consider the fact that strategy is crucial when it comes to this industry. This increased competition and consequently more people began using air travel as their preferred mode of travel. SWOT & PESTLE.com (2023). Furthermore, I am a Certified Scrum Product Owner (CSPO). Analyzes how living wage ordinances are determined by the cost of living where the airline employee is employed. When this industry began, the industry was monopolized by the state owned flag carriers (Cameron & Mike 2009).

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