Easy jet founded by Tselios Haji-Loannou, put in to one of the most competitive industries. After the effects of September 11th, reluctant to air travel passengers looked for alternatives, such as trains, cars, ferries. By introducing low-cost air travel began to attract people back into the industry. As well established airlines began to suffer the difference in pricing became evident that air travel was to be revolutionized.
An analysis on easy jets market share, sales and profit trend and comparisons with its competitors will be discussed. The report will then lead into the strengths, weaknesses, opportunities and threats. Marketing environment with the application of macro and micro environmental models will be discussed. Later we’ll discuss easy jets competitors. Explanation of marketing strategies adopted by easy jet in the Airline Industry and its growth tactics. Then focus on easy jets efficient use of the marketing mix to enhance its competitiveness. Finally a discussion will be provided on easy jets current position, success factors in the industry and prospects for the future.
I will be playing the role of a market researcher to evaluate the companies marketing a competitive strategy. The company easy jet was first established in the early 1995, the founder of the easy family was Stelios Haji-Loannou. He also branched out easy to various different regions of transactions such as easy cars easy money; the company base is located in Luton, and is recognized by the distinctive colour orange the building has been painted. Easy jet is one of the successful competitors in the low-cost airline industry, which at the moment is the leading low-cost airline in Europe, with has established 289 routes, from 36 airports all over Europe, with 122 aircrafts such as the Boeing 737 and airbus a319 aircrafts, transporting over 32million passengers.
Traditional airlines have used complex and costly hierarchical business models, which faced intense competition from the newer companies with a more simple approach to their business models. This helped to reduce costs in the company which also reduced costs for customers, and improved on communication and operations as communication was more direct then having to go through a chain of people. This flat structure also helped reduce complexity for customers and costs for paying wages. Easy jet changed air travel by their ‘no frills’ policy, which cuts unnecessary costs such as travel agent costs, processing and printing tickets, instead they used internet booking which introduces further discounts.
Easy jet brought smaller companies in the markets such as 49% of TEA Basel AG which they later named easy jet Switzerland. And buys over ‘go-fly’ airlines. PEST-G Political European Union’s commercial policy 1997 EUs deregulation of airlines Airports push on taxes Operating restrictions due to rotations and time Environmental Brand-new aircrafts being purchased, plus online bookings Forth largest economy held by the UK Costs increase as oil prices increases.
Social September 11th reduced numbers of customers from using such services which were substituted by ground transport, and for businesses teleconferencing. Technology Is fast developing in the airline industry which can result to be very costly, shared check in systems and self services gives opportunities to allow joint investments to step forward. Geophysical Cheap air travel is causing harm for the environment, as air travel creates more carbon dioxide then a car per passenger. Expansion for Britain’s airports or even building new airports is being discussed. 400million air travel passengers are expected to travel through Britain’s airports by 2030.
Competition Easy jet has high competitions with 1999 Swiss air which uses its political influence to prevent easy jet operating, in order to protect its route. Which has now been demolished as behaviours as this was made illegal within the European Union since 1993? The main competitor that easy jet has is Ryan air this airline is also a low-cost no frills airline that is as well established as easy jet. The rivalry stepped up a level when easy jet snatched the top performing airline award 2003 from Ryan air which Ryan air had been wining for the previous 3years in a row. The debate still goes on, to which company is bigger, and as both easy jet and Ryan air brought smaller firms.
Although easy jet carries more passengers Ryan air is still worth 2.5times more then easy jet. As easy jet accounts for a third of all trips, Other competitors such as BMI baby, jet 2, and flybe account for one in ten trips. Easy jet is still known as the market leader. 5forces Michael porter the founder of the 5forces model he describes this model, to show the advances, and relationships between the 5factors: potential entrants, suppliers, buyers, substitutes, and competitors. This model is a basic example of a 5force model; every individual company has a model to suit them best.