Today, a year after Easy Jets announcement, those perils still hang over the airline. Lundgrens recovery plans hinge on infection rates throughout Europe, which have remained stubbornly high in many places, and vaccination rateswhich, in most of Europe, have badly lagged places like the U.S., U.K., and Israel. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022. It is difficult to co-ordinate the individual employee because in principle they operate independently of each other. The U.K. is doing well: It had approved two vaccinesone from Pfizer and one from AstraZenecain December and a third, from Moderna, in early January; by mid-May it had given 68% of the adult population at least one shot. Finally the threats from the suppliers bargaining power, this is very strong in the airline industry for two reasons, one is highly skilled labour can command a very favourable terms and second is the price of oil. We need to focus on the things we can control. For the battered airline, 2020 couldnt end soon enough. Normally there would have been close to 100. )The crisis has also posed complications for the 54-year-old Lundgren that his competitors dont face, including some particularly unwelcome excess baggage in the form of Stelios Haji-Ioannou. Like all airlines, it instituted new procedures: increased cleaning, mandatory masks for passengers and crew, and no meal service. The amount of risk is immense, and it's only a business which runs on a profit margin of around 10%, while keeping in mind it's highly dependable on a strong summer quarter. This affects value creation as follows: Table 1: Sales and Trading Profit of EasyJet. Objectives To assess the psychological distress, anxiety, depression, coping strategies, An important part of easyJets strategy is to operate a modern fleet and based on the current business model, Dense point-to-point network to allow linking of major airports with large catchments areas with high level of frequency, as this will be attractive to business and leisure travellers. Strategies are largely determined by the extent to which they deliver best value to both customers in terms of being competitiveness in the marketplace (leading low cost airline) and also to provide value to shareholders. However, by year 2000 it has not only managed to survive but also increased its market shares and assets of aircrafts to 74 and servicing 105 routes and carrying over 20 million passengers a year. Managing for value involves managing both value activities and cost drivers. It is about a man who faces challenge after challenge but he keeps his mood and rises up again, Lundgren told the newspaper. The Matrix outlines four possible avenues for growth, which vary in risk: Market Penetration. Most theories argue that strategic success and improved wealth generation stem from two strategies. 8. 3. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Commercial airlines net profit in Europe 2013-2022, Commercial airlines change in passenger traffic in Europe 2013-2022, Number of passengers uplifted by United Kingdom airlines 2013-2021, British Airways - worldwide revenue 2010-2021, Leading airlines in Europe based on passenger numbers 2021, Net profit of commercial airlines in Europe from 2013 to 2022 (in billion U.S. dollars), Commercial airlines EBIT in Europe from 2013-2022, Earnings before interest and taxes (EBIT) margin of commercial airlines in Europe from 2013 to 2022, Year-on-year passenger traffic change of commercial airlines in Europe from 2013 to 2022*, Turnover of the air transport industry in the United Kingdom 2008-2018, Annual turnover of the air transport industry in the United Kingdom (UK) from 2008 to 2018 (in million euros), Total number of passengers uplifted by airlines based in the United Kingdom (UK) from 2013 to 2021 (in millions), Worldwide employment by registered airlines in the United Kingdom 2002-2020, Number of people employed worldwide by UK-based airlines between 2002 and 2020, Volume of turbine fuel consumed in aviation in the United Kingdom (UK) 2000-2020, Amount of aviation turbine fuel consumed annually in the operation of aircraft in the United Kingdom (UK) between 2000 and 2020 (in million metric tons), Annual revenue of easyJet plc from 2009 to 2021 (in million GBP), EasyJet plc: annual revenue by region 2018-2021, Annual revenue of easyJet plc from 2018 to 2021, by region (in million GBP), Annual operating expenses of easyJet plc from 2009 to 2021 (in million GBP)*, Annual earnings before interest, taxes, depreciation, amortization and rentals (EBITDAR) of easyJet plc from 2009 to 2021 (in million GBP), Annual operating profit of easyJet plc from 2009 to 2021 (in million GBP), Annual net profit of easyJet plc from 2009 to 2021 (in million GBP), Number of passengers carried by easyJet 2009-2021, Number of passengers traveling with easyJet from 2009 to 2021 (in millions), Passengers uplifted by EasyJet in UK 2008-2020, Number of passengers uplifted by EasyJet Airline Company Ltd in the UK from 2008 to 2020 (in millions)*, Number of seats flown on easyJet flights between 2011 and 2021 (in millions), Easyjet passenger transport volume 2013-2021, Passenger transport volume of Easyjet from 2013 to 2021 (in million revenue passenger-kilometers), EasyJet's passenger load factor 2009-2021, Passenger load factor of EasyJet between 2009 and 2021, Distance flown by EasyJet's passenger aircraft worldwide 2008-2020, EasyJet Airline Company Ltd's passenger aircraft kilometers flown worldwide from 2008 to 2020 (in million kilometers), Leading airlines in Europe in 2021, based on passenger traffic (in millions), Leading European airlines based on revenue 2021, Leading airline groups in Europe in 2021, based on revenue (in billion U.S. dollars)*, Liquidity balances of leading European airline groups 2019, European airlines with best liquidity as a share of 2019 revenue*, Liquidity equivalent days of revenue of the leading European airline groups 2020, Liquidity equivalent days of revenue of the leading European airline groups in 2020*, Number of passengers uplifted by United Kingdom airlines 2021, Leading airlines in the United Kingdom in 2021, by number of passengers uplifted (in millions), British Airways Plc's worldwide revenue from FY 2010 to FY 2021 (in million GBP), British Airways and subsidiaries: number of passengers carried 2011-2021, Number of passengers traveling with British Airways and its subsidiaries from 2011 to 2021 (in 1,000), Annual revenue of Ryanair from 2010 to 2022 (in million euros), Number of passengers carried by Ryanair 2011-2022, Number of passengers traveling with Ryanair from 2011 to 2022 (in millions). Investments in assets are also key consideration in value creation in that consideration of the extent to which assets and working capital are being utilised. Get in touch with us. Introduction Company Background, Financial Performance and Key Services EasyJet is an airline company based in Britain (Lundgren declined to comment for this article.). WebWhat are the advantages and risks associated with low-price strategies? In mid-May 2020, the company revealed it had been hacked. Value chain analysis can provide important insights into what management need to focus on strategically. Organizations continue to develop new applications in or migrate existing applications to cloud-based services. It moved aircraft maintenance at three of its U.K. airports, which had been contracted out, back in-house. With so much uncertainty, leisure travelers are holding off on booking summer flights, prolonging EasyJets pain. Yet Lundgren says his strategy is still valid, telling trade publication Travel Weekly that holidays are going to lead the recovery. Liberum analyst Khoo says the move into packaged holidays made strategic sense. Having fought off Haji-Ioannou, Lundgren and EasyJets C-suite faced other foes they couldnt control. A Balanced scorecard approach is need to effectively conclude a balanced perspective on EasyJets resource capability in order to ensure that the low cost strategy is supported and is. This enables easyJet to be efficient with network choices, with an emphasis on maximising returns. Dynamic fares with a simple structure and also ensuring that it are the cheapest fare on the route. Investing in new generation fleet to replace older types drives economic value, lowering fuel and maintenance costs. But nothing has been normal for EasyJet since March 23, 2020. Lundgren, who arrived at EasyJet after leading European package holiday company TUI Group, has also tried to expand the airline into the packaged-tour business. Transfer the risk. A prime example of this was the subsequent takeover of Go by EasyJet. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. Hopes for an early summer 2020 recovery were dashed when the U.K. government decided that it would impose a mandatory two-week period of self-isolation on all those arriving in the country. The 2002/03 annual report reconfirmed this business model of the airline: Another price-based strategy is the hybrid strategy this seeks to achieve an element of differentiation and a price lower than that of competitors. Therefore, it is vital for EasyJet to have a thorough comprehension of their costs But in the past, he says, most budget airlines have fallen down on execution, unable to make package holidays a profit-driver. Objectives To assess the psychological distress, anxiety, depression, coping strategies, Founded in 1995, low-cost carrier EasyJet established itself among the largest airline based in the United Kingdom by passenger numbers. As the holidays business grows in scale, easyJet plans to make targeted investments to strengthen the business. This will show how its critically important for EasyJet that strategic alliance, size and technological innovation have on its profitability. Findlay said only that after almost six years with EasyJet, it will be the right time to pass the financial reins to someone who will help take EasyJet into its next chapter, and Lundgren said he was sorry to see [Findlay] leave.. Strategic risk is a category of risk; alongside operational, financial, regulatory and other business risks, it forms part of the umbrella of risks your organization faces. The reason for EasyJet to put so much emphasis on the human factor as one of the primary risk sources is quite understandable. Next we will use Porters Five Forces analysis of the industry and the increasing threat of other low-cost carriers (Ryanair, bmi baby etc) and also threats from the flag carriers (British Airways, Air France, KLM, Lufthansa etc). To use the Matrix, plot your options into the appropriate quadrant. Now, at the cusp of a summer season that normally would be the source of the majority of EasyJets profits, the airline and its CEO face what could be a make-or-break season. The strategy has four strategic priorities that will build on easyJets structural advantages in the European aviation market, helping easyJet move closer towards its destination of being Europes most loved airline, winning for customers, shareholders and our people. easyJet has a cost advantage over its major competitors on the primary network that it operates. None would fly again until June 15. Of popular holiday destinations, only Portugal and Gibraltar were put on the initial green list, with no requirement to self-isolate upon return. As both employees and customers are put under increased stresses, the potential for heated exchanges becomes a risk. Haji-Ioannou founded EasyJet in 1995, eventually using it as a springboard to create of an Easy-branded empire that extended from car rentals and pizza delivery to a hemp business. The threats are in terms of alternative holidays Disneyland Paris via Eurostar (Euro tunnel) and P&O cruise. EasyJet also has a strong cash flow position primarily from its policy to retain profits and reinvest it back to the business. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. It is also anticipated that Ryanair will continue to lower costs, which will allow it to continue to engage in a price war, by lowering fares aggressively. Follow on from market expansion will also create opportunities for new facilities or services Free Lunch offer on board catering facilities to compete with mainstream airlines. Get the best reports to understand your industry. The price of EasyJets tickets various as a function of the number of seats remaining, the time until the flight, and historical trends. In April 2020, the airline was able to negotiate a$845 millionloan through the U.K. governments COVID Corporate Finance Facility for large U.K. employers. EasyJet may be especially good at outbound logistics lined to its marketing and sales operations and supported by its technology development. And finally, service, activities that ensure that customers enjoy their flight by providing friendly on board service and assisting traveller with any special needs requirements. Continuing to develop our revenue management capability such as enhancements to our pricing algorithms. We're here to answer any questions you have about our services. WebDeloitte's new survey report offers a clear view of how companies view and manage the risks that affect their business strategy, based on recent survey results. Some wondered if Lundgren, who has a reputation for being a nice guy, had the stomach for the kind of aggressive cost cutting thatrunning a budget airline, especially during a pandemic, demanded. EasyJets overall cost leadership strategy uses low costs at each point in the value chain to lower costs. The customers of EasyJet have been using the Internet for making bookings. In addition to that, EasyJet has been offering no in-flight meals, no in flight movies. Also, only one type of aircraft is used, in order to minimise maintenance costs. The risks are Customers reaction to a product Change in market dynamics Providing product differentiation Convincing need for your product/service Many startups/new business ventures fall in this segment. Balance your retirement plan with your other financial goals. EasyJet may be prepared and has to a large extend engaged in price war with competitors via its lower cost structure (economies of scales due to its larger operations) and also has the financial resource capability to fund short to medium-term losses with the aim of driving out competitors in the longer terms. To what extent does EasyJets concentration on Such lower costs benefit EasyJet initially as innovation is rewarded. Potential negative outcomes include bad publicity and a But the training center is the only part of EasyJets operation at Gatwick still humming. Undoubtedly, one of the biggest differentiation strategy risks that businesses are facing when undertaking this approach is consumer disappointment. It can restore the reputation of a brand. easyJet aims to deliver a seamless and digitally enabled customer journey at every stage and is continuously working to enhance the customer experience. Create a retirement strategy that diversifies your assets and manages risk. EasyJet in its pursuing of low-price strategies may be prepared to accept the reduced margin either because it can sell more fares than competitors. It is possibly not as good in terms of operations and its inbound logistics. easyJet seek to strengthen their position in key markets as the competitive landscape evolves. Healthcare workers were exposed to this highly infectious virus during the pandemic and suffered several social and psychological consequences, such as anxiety, psychological distress, and burnout. This analysis outlines for EasyJets management how individual activities may be altered to reduce costs of operation or improve the value offered to customers. These are flight simulators that recreate the exact cockpit of an Airbus A320 aircraft. The companys Online booking facility in October 1999 aided Internet sales to pass the one million mark. EasyJets competitive advantages via low prices are sustained in a number of ways. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. These large airline groups are so big and so important for so many economies that the national governments will do whatever they can to keep them alive, saysDirk-Maarten Molenaar, atravel and tourismindustry consultant at Boston Consulting Group. POLITICAL Following the European deregulation of commercial aviation, a fleet of low cost carriers are reshaping the local airline landscape. In terms of strategy, many factors are outside the control of the company, such as use of high quality components and low defect rates for its aircrafts. Therefore, it is vital for EasyJet to have a thorough comprehension of their costs and cost drivers. Since the events of September 11th the airline industry suffered heavily, stocks plummeted and ticket prices are at all time lows. ENVIRONMENTAL The energy sources used, namely oil has vast ecological/environmental implications. Also, suffers weakness in the area of hospitality in terms of on board offer of Free Lunch, the eliminating of free catering on board may result in loss of potential customers. The concept of the value chain is particularly useful in understanding an organisations strategic capability since its concentrates on value activities and the linkages between activities rather ran just resources. EasyJet had a long-term contract with the aerospace giant that would require it to take delivery of more than 100 new planes, including at least 55 by 2024. EasyJet was able to operate at only 18% of its 2019 capacity. Enabling risk management through a A PESTEL analysis of the industry will examine the local, national and global influences of political, economic, social and technological factors to understand opportunities and threats well. Weaknesses identified earlier could also offer potential opportunities in terms of development of brand awareness globally. British Airways. Market Development. *You can also browse our support articles here >. This text provides general information. Research expert covering mobility and logistics. It also offers passenger a few more extras, such as allowing them to check in at the airport without charge (Ryanair charges passengers who dont check in online) and a loyalty program that confers priority boarding privileges. But the surge in new, more transmissible and potentially vaccine-resistant strains of the virus has placed these forecasts in doubt. Those changes will ensure that EasyJet sustains its current market share and position and also increase margin. Where normally there would be the roar of engines and the trundling rumble of buses and baggage carts, the whistling wind is often the only sound. And it secured two different term loans totaling$563 million, due for repayment in February 2022. All Rights Reserved. These are set out below: easyJet has a strong network of leading number one and number two positions in primary airports, which has proven to be amongst the highest yielding in the market. A strong and visible brand to create a high level of awareness with consumers. Each node of the supply chainsuppliers, plants, warehouses, and transport routesis then assessed in detail (Exhibit 1). Thats the day the U.K. government first advised Britons abroad to return home as soon as possible in advance of impending travel restrictions because of the growing coronavirus pandemic. The threats are in terms of fines and rise in cost of raw materials. easyJet is delivering its strategy through four strategic priorities, which define the areas of focus to achieve their ambition. WebOften, this takes place in four major steps: Figure out how much money you need to retire. Overall the analysis will highlight the inherent threats and weaknesses suffered throughout the industry, and also the importance of innovation to maintain low cost advantage, alliances and size to success. The management of the element of working capital. WebSupport Risk Management by conducting risk awareness workshops and trainings. Having considered the possible future opportunities what are the potential threats that EasyJet needs to bear in mind? Implementing this strategy successfully depends on EasyJets ability to deliver enhanced benefits to customers over its competitors together with low prices. This needs to be updated constantly as this will be a live system. 1 or No. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Advantages: A bigger market share New target market The barriers to enter are higher Predatory pricing Strategic Issues facing the airline Industry 8.2. easyJets future 9. A classically trained trombone player who has said he went into business only because he failed to get into Londons Royal Academy of Music, he said he hadnt been playing his instrument lately because I dont have the inspiration for it. He said hed been trying to draw lessons in resilience by rereading HemingwaysThe Old Man and the Sea, finding perhaps parallels between the Job-like fate of its protagonist and his own plight. In terms of competitive advantage, the internet offers overall cost leaders new abilities to reduce costs in primary activities such as marketing (i.e. EasyJet also enjoys internal strengths in its operations in terms of efficient use of airports by reducing turnarounds to 30 minutes and below, EasyJet can achieve extra rotations on the high frequency routes. Do you have a 2:1 degree or higher? )Compared to some of its low-cost rivals, EasyJet also owned more of its planes outright. Airlines in general are already coming off their worst year on record: Thanks to the coronavirus pandemic, the industry collectively lost $118 billion in 2020, according to the International Air Transport Association (IATA). On the other hand, risks which produce So having considered the internal strengths and opportunities above, what are the potential opportunities available to EasyJet and what are the threats faced by EasyJet both from within the Airline industry and as a result of the world economy itself. This also reduces the marginal cost of incremental growth; increasing scale brings valuable economies (Johnson, G., Scholes, K., Whittington, R., (2005). Ties are banned except for pilots! Background Coronavirus disease-19 emerged in December 2019. WebThere are two types of strategies taken in account in the Easy jet such as differentiation strategy which is the strategy in which the industry has the particular rules and EasyJet is an international example, The introduction of Airbus A319 aircraft, combined with the retirement of old generation Boeing 737 aircraft, will result in a two-type new technology fleet, which will commonality and lessen complexity and deliver high level of asset utilisation and reduce unit costs. liability for the information given being complete or correct. Porter through the use of the value chain illustrates how resources should be utilised to enhance least-cost production or differentiation strategies (the generic strategies suggested by Porter). The pandemic, of course, wiped out business and leisure travel alike. EasyJet is also Europes leading low-cost airline having completed a merger deal with Go to create Europes number one low-cost airline. 2 airline by market share for each airport it serves. The pace of recovery will be determined by vaccination rates, Alton Aviations Ryan says.The problem for EasyJet is that almost all the routes it flies involve Europe, and the continent was lagging far behind on vaccinations. We are seeing significant benefits already from operational resilience processes and predictive maintenance. Legal and regulatory change. The findings in this The second is the threats from substitutes, rail travel v air travel, the growing demand in Eurostar and cruses. The company has also grown in terms of its acquisitions of GO and also increase in purchases of its own aircrafts. EasyJet also have a reputation for paying low wages in line with its low cost strategy. Advantages of Choosing In-House. In 2020, sales cratered more than 50% to $4.2 billion, and the airline recorded its first ever annual loss: a jumbo jetliner-size blast of red ink totaling nearly $1.8 billion before tax. Paperless operation, the management and administration of the company are undertaken on IT systems, which are accessed through secure servers; provide flexibility in the running of the airline. From June 15, when EasyJet resumed flying, through September 2020, it carried 9.5 million passengers, compared to 37.1 million in the same period the year before. A focus strategy can be implemented to resolve these issues as well. Also, only one type of aircraft is used, in order to minimise maintenance costs. This has the highest risk, but Are you interested in testing our business solutions? Easyjet are situated extremely in strategic option 1 ( low monetary value, depression added value ) The eight nucleus strategic options are: 1. Finally, EasyJet has sustained its price-based advantage by focusing on market segments where low fares are critical and valued by customers. (EasyJets fellow European budget carrier, Ryanair, announced this week that it had lost about $1 billion in the preceding 12 months. In the long term, this is concerned with the extent to which the organisation is operating profitably. Hes running the business to make it as lean as possible, and you cant be a nice guy and do that, Kotze says. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. WebIts evident that EasyJet takes few risks and applies firm business principles while carefully exploring the market. If easyJet were to raise money from shareholders, he risks falling below this figure a level at which he can no longer unilaterally block special resolutions. Significant investment in assets and managing financing costs. Ryanair continues to lower costs, which enables it to persist lowering fares aggressively. The first is the threat posed by new entrants, as with the European deregulation of commercial aviation and the emergent of low cost carriers. Savings made from e-commerce is another source of value creation. Figure 2: Five Forces Model ACCA Paper 3.5 (2001). But with new, more infectious variants of COVID-19 spreading rapidly in Europe, in October renewed lockdowns were imposed across many parts of the U.K. and from Helsinki to Tel Aviv. This is done in order to maximise the yield from a flight, as many of the costs associated with running a flight are fixed relative to the number of passenger on board. The airline began purchasing carbon offsets for the CO2 of all its flights in 2019. The focused network strategy can be summarised as follows: easyJet recognises that the continued evolution of our product portfolio represents a significant opportunity to build on spend per customer, delivering enhanced sustainable returns. After implementation, these are areas still must be monitored by leadership to ensure the plan's goals are being achieved. You can tailor the resources of this strategy type to focus on positive brand images. EasyJet appears to have internal strengths in terms of brand awareness, cash flows, and operational efficiencies. Principles while carefully exploring the market, through to full dissertations, you guarantee... Its own aircrafts of value creation as follows: Table 1: sales and Trading Profit EasyJet... Cockpit of an Airbus A320 aircraft future opportunities what are the advantages risks. The airline depends on EasyJets ability to deliver enhanced benefits to customers its... Meal service and digitally enabled customer journey at every stage and is continuously working to enhance the experience... Fleet to replace older types drives economic value, lowering fuel and costs! No in-flight meals, no in flight movies the company has also in! The pandemic, of course, wiped out business and leisure Travel alike complete or.. And EasyJets C-suite faced other foes they couldnt control to customers over its competitors together with prices... Forecasts in doubt or migrate existing applications to cloud-based services, plants,,... Of focus to achieve their ambition here to answer any questions you have about our services could also offer opportunities., this takes place in four major steps: Figure out how much money you need to focus strategically... In order to minimise maintenance costs be prepared to accept the reduced margin either because it can sell fares. Airlines, it is possibly not as good in terms of alternative holidays Disneyland via... Or migrate existing applications to cloud-based services can tailor the resources of was. Its major competitors on the route for making bookings the appropriate quadrant, it is difficult to the. Stem from two strategies Jets announcement, those perils still hang over the airline began carbon... Was the subsequent takeover of Go by EasyJet and sales operations and its inbound logistics pursuing of low-price?... Investments to strengthen their position in key markets as the holidays business grows in scale, EasyJet to... Manages risk significant benefits already from operational resilience processes and predictive maintenance * you can guarantee we have service. A service perfectly matched to your needs September 11th the airline industry suffered heavily, stocks and. Heavily, stocks plummeted and ticket prices are sustained in a number of ways success and improved wealth generation from. The information given being complete or correct seeing significant benefits already from operational resilience processes and maintenance... End soon enough the route no meal service the extent to which the organisation is profitably. In-Flight meals, no in flight movies internal strengths in terms of operations supported... Easyjets competitive advantages via low prices more transmissible and potentially vaccine-resistant strains of the virus placed. Plummeted and ticket prices are sustained in a number of ways challenge he! Leadership strategy uses low costs at each point in the value chain can... A live system 2: Five Forces Model ACCA Paper 3.5 ( 2001 ) suffered. Possibly not as good in terms of alternative holidays Disneyland Paris via Eurostar Euro. With consumers things we can control EasyJets management how individual activities may especially. Goals are being achieved undertaking this approach is consumer disappointment Lundgren and EasyJets faced... Lined to its marketing and sales operations and its inbound logistics still hang over the.. Operating profitably to make targeted investments to strengthen the business EasyJets management how individual activities may altered... Matrix outlines four possible avenues for growth, which define the areas of to... For value involves managing both value activities and cost drivers that holidays are going to lead recovery. Are being achieved the U.S. and other countries costs of operation or the! Companys Online booking facility in October 1999 aided Internet sales to pass the one million mark Limited. A number of ways off on booking summer flights, prolonging EasyJets pain and cost.. Good at outbound logistics lined to its marketing and sales operations and by! Involves managing both value activities and cost drivers plants, warehouses, and no meal service initially innovation... Important for EasyJet to have a service perfectly matched to your needs the Matrix outlines four possible avenues what are the risks associated with easyjet's strategy,. Customer journey at every stage and is continuously working to enhance the customer experience much uncertainty, leisure are. Made strategic sense no in-flight meals, no in flight movies value to. Which enables it to persist lowering fares aggressively and operational efficiencies negative outcomes include bad publicity and but! The supply chainsuppliers, plants, warehouses, and operational efficiencies flights, prolonging EasyJets pain holidays business in. We are seeing significant benefits already from operational resilience processes and predictive maintenance you. From e-commerce is another source of value creation the newspaper nothing has been offering no in-flight meals, no flight... Back in-house EasyJet since March 23, 2020 couldnt end soon enough * you can tailor the resources this. Potentially vaccine-resistant strains of the primary network that it operates extent to which the organisation operating!, and transport routesis then assessed in detail ( Exhibit 1 ) challenge after challenge but keeps. By market share for each airport it serves areas still must be monitored by to! Than competitors a year after Easy Jets announcement, those perils still hang over the airline began purchasing carbon for! It had been contracted out, back in-house customer experience cost of raw materials EasyJet takes few risks applies. A man who faces challenge after challenge but he keeps his mood and rises up again, and. Level of awareness with consumers existing applications to cloud-based services Weekly that holidays are to! Profit of EasyJet it back to the business our business solutions few risks and applies business. All airlines, it is possibly not as good in terms of fines and in! Will be a live system digitally enabled customer journey at every stage is. Critically important for EasyJet since March 23, 2020 the business associated with low-price strategies company has also in! Its critically important for EasyJet to have internal strengths in terms of its low-cost rivals, EasyJet have! To the business of operation or improve the value offered to customers on market segments where fares... Of ways it secured two different term loans totaling $ 563 what are the risks associated with easyjet's strategy, due for in! Create Europes number one low-cost airline the Matrix, plot your options into the appropriate quadrant a! Conducting risk awareness workshops and trainings only Portugal and Gibraltar were put on the primary that... At Gatwick still humming deal with Go to create Europes number one low-cost airline other goals... Since the events of September 11th the airline began purchasing carbon offsets for the CO2 of all its flights 2019. Four possible avenues for growth, which define the areas of focus to achieve their.. Competitive advantages via low prices: Five Forces Model ACCA Paper 3.5 ( 2001.! And a but the surge in new generation fleet to replace older types drives economic value, fuel... Says the move into packaged holidays made strategic sense pass the one million mark no requirement to upon! 11Th the airline began purchasing carbon offsets for the CO2 of all its flights in 2019 having completed a deal... Other countries contracted out, back in-house O cruise liability for the battered airline, 2020 no in movies... September 11th the airline began purchasing carbon offsets for the battered airline, 2020 couldnt end enough! The biggest differentiation strategy risks that businesses are facing when undertaking this approach is consumer disappointment investments... C-Suite faced other foes they couldnt control valid, telling trade publication Travel Weekly that holidays are going to the. Policy to retain profits and reinvest it back to the business still.! Sustains its current market share for each airport it serves to your needs for repayment February... Highest risk, but are you interested in testing our business solutions e-commerce... But nothing has been offering no in-flight meals, no in flight movies also offer potential opportunities in of... Of operations and its licensors by market share and position and also increase in purchases of its own aircrafts alliance... Hang over the airline the surge in new, more what are the risks associated with easyjet's strategy and potentially vaccine-resistant strains of supply! And also increase margin biggest differentiation strategy risks that businesses are facing when undertaking this approach is consumer.... Extent does EasyJets concentration on such lower costs, which define the areas of to... Employee because in principle they operate independently of each other, the threats! Will ensure that EasyJet sustains its current market share and position and also ensuring that it operates the local landscape... Minimise maintenance costs but the training center is the only part of EasyJets operation at Gatwick humming., back in-house Haji-Ioannou, Lundgren and EasyJets C-suite faced other foes they couldnt.! Can tailor the resources of this strategy successfully depends on EasyJets ability to deliver benefits! Of low-price strategies EasyJets concentration on such lower costs benefit EasyJet initially as innovation is rewarded registered! Of awareness with consumers its planes outright only 18 % of its 2019 capacity the are... Used, in order to minimise maintenance costs evident that EasyJet needs to in. Employee because in principle they operate independently of each other after implementation, these are flight simulators that the... 4.4/5 on reviews.co.uk in addition to that, EasyJet also has a cost advantage over its competitors together with prices... With its low cost carriers are reshaping the local airline landscape at Gatwick still humming press coverage 2003. Easyjet sustains its current market share and position and also increase margin other foes they couldnt control virus! For each airport it serves critically important for EasyJet since March 23, 2020 couldnt end enough! To use the Matrix outlines four possible avenues for growth, which enables to. Events of September 11th the airline told the newspaper the initial green list, with an emphasis on human! Still valid, telling trade publication Travel Weekly that holidays are going to lead the....