Easy Jet And The Strategic Analysis Of External Environment

3351 words - 14 pages

Question A Contents1.0 Introduction page 32.0 Attractiveness of the budget airline sector page 3-42.1 The Far Environment page 32.2 The Near Environment page3-43.0 Is the budget airline industry attractive? Page 4-54.0 Appendix 1- BCG Strategic Environments matrix page 65.0 Appendix 2- Five Forces, or Six? page 6IntroductionThe national flag carriers who together accounted for the majority of passenger traffic traditionally controlled the European airline sector. These national carriers were protected by regulation allowing them to monopolise the industry.However, over the past decade the industry has seen some drastic changes. European aviation has moved from a highly regulated industry, ...view middle of the document...

With increased competition in the sector, customers are now expecting complete flexibility to change their travel plans.Probably the most significant change in the budget airline sector has been through technological development and more specifically the use of the Internet as a distribution channel. Most companies have a website to promote their products and create a positive corporate image, however this sector has shown that it makes sense to embrace the growth of the Internet and make it one of the core aspects of their sector.Historically air travel has been considered expensive and will strongly be influenced by economic condition. However with the introduction of competition into the market, the budget airline sector has been able change this image and can now offer affordable flights to the masses.The Near EnvironmentThe introduction of the budget airline sector into the European market has brought far greater competition for all aspects of the airline industry. Although the defined target customer of the budget sector is aimed at different consumers than those traditionally using flag carriers (travellers visiting relatives, leisure travellers as well as entrepreneurs and managers working for small firms, rather than business travellers), 50% of the passengers flying with budget airlines are those business travellers who historically would use the national carriersAlthough customers are important to every organisation there are other resource issues that will have a greater impact on the industry. The number of airport slots is a problem that will cause barriers to entry for any new competitors looking to compete in the budget airline sector (Appendix 2). There are many destinations in Europe that have the population big enough to make it work, however London stands out with having a large centralised population and customers willing to travel.With such a large number of companies joining the budget airline sector, many would suggest that the buyer power is strong within the competitive market. However this is not the case, although there are a number of strong competitors in the market, very few compete directly on the same routes. For example easyJet is the only low cost carrier flying into Athens . However looking at the complete airline industry there are a number of flag carriers that will fly the same routes. Therefore buyers have the choice of switching carrier, yet this will be at a much greater cost . Unless the customer is extremely unhappy with the budget airline, the option to switch to a national carrier is very unlikely (Appendix 2).Since deregulation in the 1990s the European market has spawned fewer competitors than experienced in the US industry. It is believed the main reason for this is the cost of entry. Industry experts believe that the cost of running an airline in Europe is on average, 40% more than that in the US . Although many of the political barriers have been lifted the cost of entering the European market...

Other Essays On Easy Jet And The Strategic Analysis Of External Environment

The dangers of non-metals to the environment

376 words - 2 pages Among the most harmful and dangerous non-metal compunds are nitrogen oxides, sulphur dioxide, carbon dioxide, carbon monoxide, and hydrogen sulphide. These can cause devastating effects to human beings, plants, animals and the environment. Matals are generaly less harmful, although lead is extremely toxic.Hydrogen sulphide is a highly toxic gas. It has a very bad smell, often identified in rotten eggs and stink bombs. Hydrogen sulphide

Estrogen Mimics and thier Effect on the Environment

556 words - 3 pages into the body from the environment, mimic the actions of estrogen produced cells or alter the hormone's activity (Davis and Bradlow, 1995). Some of the foreign estrogens can reduce the effects of estrogens. These xenoestrogens are usually found in plant foods such as soy products, cauliflower and broccoli (Davis and Bradlow, 1995).There is significant evidence that the endocrine systems of fish, wildlife, and humans can be adversely affected by

An analysis and description of the life of Bill Gates and the beginnings of Microsoft Corporation

434 words - 2 pages The lives of two men in one instance of their lives is as great as any other moment. At MITS corporate locale in Albuquerque, Paul Allen loaded the team's code onto the Altair. On the second try, the system booted and worked as planned. Bill Gates and Paul Allen moved to Albuquerque to help MITS with the Altar. In April, 1975, Gates and Allen founded the Microsoft Corporation in Albuquerque, New Mexico. Microsoft would sell its BASIC system to

Analysis Of The Bicycle And Its Role In Society

398 words - 2 pages Not only are Parents responsible for providing food and shelter for their Children, but they should also help them to develop their mental and physical condition. A Bicycle, a vehicle having two wheels one behind the other, influences a child's physical, intellectual and social development. It also can improve the quality of life. Riding a bicycle will provide children with health and other benefits. A bicycle can save them money in gas and also

Which Human Activities Affected The Natural Environment Of The Amazon Basin?

857 words - 4 pages logging industry to sell to the MEDCs. As they cut down trees from the Amazon rainforest displacing many tribes, animals, and are merely disturbing the environment. Even to make roads to the logging plants, they have to cut down 1/3rd of the trees they cut down in total. This is probably the biggest part of the deforestation of the Amazon forest.To help the Brazilian economy, the government allows foreign companies to invest in land, clear the

The Country of Honduras: A brief report on Honduras, including its economy, culture, environment, etc

506 words - 3 pages dispute.Different to other developing countries, Honduras is a democracy. It holds elections for its government leaders, though they are not on a clear or regular schedule. The current President is Manuel Zelaya.The Honduran environment consists mostly of jungle and rain forest type settings. It is part of the Mesoamerica climate region, know for its extreme biodiversity in both plant and animal species. This also contributes to why so much of the country is so environmentally protected and reserved.

Analysis Of The Idiot Colony

857 words - 4 pages “The Idiot Colony” produced by the Redcape Theatre Company performed at the Gulbenkian Theatre on the 7th of October explores the pasts and the emotions experienced by three institutionalized women. It explores the relationships of these three and leads to a rather grim eventuality.The opening of the play sets the scene through the entrance of the three women with there hair drawn across their faces. The image is used to create a sense

Analysis Of Advantages And Disadvantages Of FDI

2279 words - 10 pages there is a discrepancy between multinational firm and its subsidiary, it is not easy to conciliate, as there is few restrictions on whether the same strategies the licensee should adopt with the center.Third, for multinational manufacturing firms which have management and marketing know-how such as Toyota, licensing a foreign firm to manufacture a particular product seldom raises any competitive advantages for licensee. Because these kinds of

Analysis Of Hamlet's Second Soliloquy And Its Comparison With The Final Soliloquy

2026 words - 9 pages - together with Hamlet's plan for revenge. It is positioned after Polonius reveals the reason for Hamlet's madness to King Claudius and Hamlet's meeting with Rosencrantz and Guildenstern. Thorough and critical analysis of the second soliloquy will be presented in the following paragraphs.One of the main issues in this soliloquy is Hamlet's delay for taking revenge. Initially, Hamlet heavily criticizes himself for not taking any action yet:" Now I

Short analysis of the Principles of Republicanism

475 words - 2 pages possesses the capacity to make a decision?)The fourth was Public Virtue.This may be the most important principle of Republicanism. That was the belief that the concerns of society were more important than the welfare of the individual. The government must support a sense of morality and virtue for the people. (Do not confuse this with governmental support of the public; without concerns for society we would be left with strict libertarianism or

Analysis Of "No Exit", And Existentialism

353 words - 2 pages "No Exit's" central themes of freedom and responsibility come from Sartre's doctrine that existence precedes essence. Sartre believed that a being-for-itself differed from inanimate objects, or a being-in-itself, since humans have the ability to choose and define their individual characteristics. But with this freedom of choice comes the absolute responsibility for one's action. The fear and anxiety of this responsibility leads many people to

Similar Papers

Black Water Rafting, Internal And External Environment. Strategic Management

8971 words - 36 pages external context of the business demonstrating the analysis of the resources and environment that the organisation has. Following this, future potential strategies will be identified.Concluding the report…2. Internal environment2.1. Mission StatementA mission statement can be defined as"A formalised statement of the overall strategic purpose of an organisation." (Evans et al. 2003)The purpose of the mission statement is to communicate to all

Country Risk And Strategic Planning Analysis Paper

2132 words - 9 pages In Order to remain more competitive on a global scale, often companies today are deciding to globalize their markets by taking their businesses to outside countries. Successful implementation of products and services into a foreign market requires the business to conduct a necessary analysis of all the risks involved and create any applicable strategic plans addressing these issues. In this paper, a risk analysis will be conducted to help Playa

Effects Of Globalization On The Environment

584 words - 3 pages support. In addition to the tsunamis relief support granted through globalization, it has affected the environment in other ways as well. It has greatly increased the environmental standards worldwide. Through the development of the internet many environmental agencies have evolved which have increased the protection of the environment. The internet has made them more effective and they are now able to communicate much easier than ever before

Report On The Mintzberg's Article In The Harvard Business Review About The Fall And The Rise Of Strategic Planning

464 words - 2 pages responses with responses that emerge out of the changing environment. Strategy may appear as a plan to some, but to others the term is used to describe a position. For others, strategy implies a perspective or concept of doing business. This last often speaks volumes to the organization's values and culture.To summarize Mintzberg emphasizes the need to stop putting so much importance on the strategic planning. It can sometimes blur the image for the