what are the risks associated with easyjet's strategywhat are the risks associated with easyjet's strategy

easyJet holidays is on track to meet the medium-term target of 100m+ PBT. Strategical moves like this have enabled it to reduce cost and improve the convenience for the customers. Yield management is a form of risk management and therefore, adds value. EasyJet may be especially good at outbound logistics lined to its marketing and sales operations and supported by its technology development. Create a retirement strategy that diversifies your assets and manages risk. 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. It is evident that having only one collaborate is risky due to the possible delays in time. Cost advantages might be achieved because of EasyJets efficient use of airports. Within weeks of the vote, Findlay, EasyJets CFO, announced his intention to step down, and analysts speculated that the stress of Haji-Ioannous campaign, on top of that caused by the pandemic, had taken a toll. Beneath the surface of EasyJets cosmetic cost savings of not offering free in-flight refreshments or different first, business and economy classes, was a philosophy of cost saving that permeated through the entire organisation. The existing competition also have strong brand image globally, EasyJet is recognised nationally and within the European markets, however, national airlines like British Airways is recognised worldwide and has stronger brand awareness. Given that they were doing almost nothing before, there is a big opportunity to move from zero to something, he says of the holiday tours. easyJet has a cost advantage over its major competitors on the primary network that it operates. Many of EasyJets competitors in Europe are national flag carriers: Air France, KLM, Lufthansa, SAS, Iberia, TAP Air Portugal, Swiss Air, and British Airways. The company has announced plans to reduce its 15,000-person workforce by 30%. If COVID doesnt ease more quickly, and leisure travel doesnt rebound as hoped,EasyJetshole will only get deeper, and its plans to grow could be spiked indefinitely. Ryanair had even tried to capitalize on this connection between vaccinations and travel in its marketing, rolling out at jab and go advertising slogan in January, which it had to withdraw after objections from Britains Advertising Standards Authority that it was not promoting responsible behavior. Therefore, demand led with proprietary yield management system. 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. Objectives To assess the psychological distress, anxiety, depression, coping strategies, Lower costs are the only competitive advantage in the short-haul economy sector as air travel is effectively a commodity product. By mid-May, most of the major European nations had administered first doses to just over a third of adults amid critical vaccine supply shortages and concerns about rare but dangerous blood clots linked to AstraZenecasand Johnson & Johnsonsvaccines.Without a brisker vaccination pace, a third wave of infectionskeeps threateningto take hold in Europe. POLITICAL Following the European deregulation of commercial aviation, a fleet of low cost carriers are reshaping the local airline landscape. We're here to answer any questions you have about our services. All airline companies within the industry will have similar value chain, which will include activities such as obtaining fuel, designing fare structures, airport facilities, developing co-operative agreements, and providing customer service. Since March 2020,European governmentshave provided more than$32.2 billion in bailouts to the airline industry,through a mix of grants, loans, and debt-for-equity deals, according to a report from HSBC. He offered a $7 million reward to any whistleblower who could provide him useful information leading to the cancellation of the Airbus contract. The reason for EasyJet to put so much emphasis on the human factor as one of the primary risk sources is quite understandable. Finally, the key to sustaining high levels of growth is the scalability of the operations. It was enough to make any airline CEO play the blues. EasyJets overall cost leadership strategy uses low costs at each point in the value chain to lower costs. But these savings barely stanched the arterial bleed of cash gushing from the companys coffers:In 2019, the airlines operations had generated more than $1 billion in cash. The fourth force is the bargaining power of buyers. In essence, Lundgren told the BBC, thismeansonly the rich can go on holidays: The expense of these tests would be way over and above what the cost is of an average EasyJet fare, he said. Are you interested in testing our business solutions? In an interview with LondonsEvening Standard newspaper in January, Lundgren sounded down, admitting he missed frequent trips to the Spanish island of Majorca, where he owns a house and where he and a friend also own a recording studio. Value chain analysis can provide important insights into what management need to focus on strategically. 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. Organizations continue to develop new applications in or migrate existing applications to cloud-based services. EasyJet also have a reputation for paying low wages in line with its low cost strategy. 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. Combining perceived low price with perceived added value can be a highly successful strategy but one that requires innovative thinking. Its current cash flow position is also strong, with cash flow from operating activities increased by 61 percent between the six months ended 31st March 2003 to six months ended 31 March 2004. The global, interconnected nature of the aviation industry means that airlines, lessors, MROs and suppliers are highly vulnerable to external factors out of their control. Diversification. The company has also grown in terms of its acquisitions of GO and also increase in purchases of its own aircrafts. This analysis outlines for EasyJets management how individual activities may be altered to reduce costs of operation or improve the value offered to customers. The website features a map of the world that displays a small airplane icon for every flight in the air, based on radar and transponder data. 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. Now, more than a year later, with the pandemic still raging, and with many countries, including the U.K., having toughened travel restrictions in response to new strains of the virus, the airline industrys hopes for an early recovery are descending faster than an Airbus A320 on final approach to EasyJets home base at Luton Airport. Having considered the possible future opportunities what are the potential threats that EasyJet needs to bear in mind? A lack of real-time reporting makes it easy to miss the signs of an approaching catastrophe. Having fought off Haji-Ioannou, Lundgren and EasyJets C-suite faced other foes they couldnt control. 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. This will identify its strength, weaknesses, opportunities and threats. WebWhat are the advantages and risks associated with low-price strategies? In the May showdown vote, the disgruntled founders effort was roundly defeated, with 99% of the shares not held by the entrepreneur and his family casting ballots against removingthe directors. 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. The management of the element of working capital. Another major industry wide threat is the volatility in price of fuel Oil price record high of $53 a barrel. this was the headline in the business pages of all the newspapers last November. In 2020, it transported a At the end of January, EasyJet announced that it had secured another $1.9 billion through a five-year loan, secured against its aircraft. Adjust your investments to Many of those airlines are limping along on government funding they might never be able to repay, says Leah Ryan, managing director of Alton Aviation, a leading industry consultant. Still, Lundgren could not have been happy with the Flightradar24 map on a Tuesday morning in late April. WebIts evident that EasyJet takes few risks and applies firm business principles while carefully exploring the market. The price of EasyJets tickets various as a function of the number of seats remaining, the time until the flight, and historical trends. At the same time that it was offloading planes to raise cash and placing others into long-term storage in boneyards, the company still took delivery of 14 brand newAirbus A320 and A321 Neos. Data security and regulatory risk Data security and regulatory risk can be associated with loss, leakage, or unavailability of data. The airline had become Europes equivalent of Southwest in the U.S. 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. EasyJet is also Europes leading low-cost airline having completed a merger deal with Go to create Europes number one low-cost airline. Study for free with our range of university lectures! Continuing to drive product conversions by improving the way ancillaries are sold and product merchandising. In 2020, those months were grim. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. The findings in this Finally the report will examine the extent to which EasyJets current no frills strategy is the appropriate strategic fit to its organisation both in terms of resource capability and business environment. It is here that EasyJets pilots practice and maintain their skills. Pandemics, lockdowns, trade disputes, financial crises and more can depress travel demand and threaten the bottom lines of industry players. This enables easyJet to be efficient with network choices, with an emphasis on maximising returns. Furthermore, a lifetime history of D After listing the risks and putting them in a risk matrix, the report will then aim to explain how the risk will affect easyJet and justify the position of it in the risk map. Just two EasyJet aircraft were in the air, one en route from Londons Gatwick Airport to Lyon in France; another from Belfast to the English Channel island of Jersey. Strategic risk management is the process of identifying, quantifying, and mitigating any risk that affects or is inherent in a companys business strategy, strategic objectives, and strategy execution. This results in high levels of asset utilisation and reduced unit costs. This is intensified as a result of little or no differentiation in the service offered. It has been streamlines by using e-commerce, firstly by telesales and now through the Internet. EasyJets new holiday division launched in December 2019, just months before the pandemic took hold. This results in a very strong competitive rivalry in the industry. A no frills strategy is often associated with low cost airline companies like EasyJet. 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). Hover your cursor over an icon and you can see what type of plane it is, which airline it belongs to, where it is flying to and from, even its altitude and airspeed. They fly into second- and even third-tier airports, where they control a dominant share of the gates and can drive tough bargains on any airport fees and charges for ground crews and baggage handlers. While it is often lumped into the same European budget airline category as Dublin-based Ryanair and upstart Hungarian carrier Wizz Air, there are some key differences between EasyJet and those other airlines. As hard as it has tried to inoculate itself against the pressures of the pandemic and to convince passengers it will be safe to fly, its fate remains up in the air, subject to unexpected and unwelcome turbulence. Investing in new generation fleet to replace older types drives economic value, lowering fuel and maintenance costs. Those planes are Airbuss most fuel-efficient models, offering operational savings for EasyJet in the long run. The airline began purchasing carbon offsets for the CO2 of all its flights in 2019. Ryanair and Wizz Air cater almost exclusively to leisure travelers. We will consider the value chain for EasyJet in more detail later in our discussion. Threats are also in terms of legislative environmental laws regarding pollution and use of more environmentally friendly fuel, which are at premium prices. Easy Jet: Company Operation Strategy : Historical-Hall-2840 Get in touch with us. Of popular holiday destinations, only Portugal and Gibraltar were put on the initial green list, with no requirement to self-isolate upon return. If it failed to do so, he threatened to call a vote to remove one director from the board every seven weeks, until the board acquiesced. As a result, it finished 2020 with more aircraft in its fleet than it had at the beginning of the year, despite the pandemic-induced travel doldrums. Balance your retirement plan with your other financial goals. Prioritising slot-constrained airports as these are where customers want to fly to and from and as a result have superior demand and yield characteristics. This will involve retention of best salespeople supported by HR management, engineering support in terms of maintenance of the web page supported by technology development to ensure that web site has the latest prices and route and flight information. Accepting this fact and having a strategy in place to mitigate risk is critical to being a successful innovator. 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. EasyJet appears to have developed competences in supporting much higher levels of business from the same asset base than other rival airlines. )Compared to some of its low-cost rivals, EasyJet also owned more of its planes outright. 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. Failure to acquire adequate funding for your business can damage the chances of your business succeeding. Introduction Company Background, Financial Performance and Key Services EasyJet is an airline company based in Britain This report will provide a detailed analysis of EasyJets current corporate appraisal or SWOT analysis. easyJet aims to deliver a seamless and digitally enabled customer journey at every stage and is continuously working to enhance the customer experience. Making it easy, enjoyable and affordable to travel again and again for business and holidays. WebThere is one main reason which influences these economic factors is the recession in the Easy jet. The primary weakness is the perception of low quality low cost can also be seen as low quality service than that offered by the established national airline i.e. There is national pride, not to mention jobs and pension payments, resting on their wings. 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. EasyJets first generic strategy is to achieve an overall cost leadership in the low cost airline industry. Therefore, it is vital for EasyJet to have a thorough comprehension of their costs and cost drivers. EasyJet is forever trying to attain a cost level that is low relative to its competitors. Currently, around 12% of boarding passes issued by easyJet are mobile passes, although this can be as high as 50% for some flights. 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. Potential threats in terms of changing social trends like holidays outside Europe (many now want to experience the eastern cultures and travel to holiday destinations like China and Japan) and also travelling via the EuroStar to Paris etc. easyJet is building a network of key cities, broadening their presence across Europe. An important part of easyJets strategy is to operate a modern fleet and based on the current business model, Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. All work is written to order. In addition to that, EasyJet has been offering no in-flight meals, no in flight movies. EasyJets competitive advantages via low prices are sustained in a number of ways. The threats are in terms of alternative holidays Disneyland Paris via Eurostar (Euro tunnel) and P&O cruise. Do you have a 2:1 degree or higher? 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. Effective use of digital and data tools to underpin growth and deepen customer relationships. Although mostly private now, many of these airlines were once state owned, and some still have not insignificant government stakeholdings. In March 2020, he wrote to EasyJets chairman, John Barton, and demanded the company terminate the contract, citingforce majeure. As funding from operations are clearly a major contributor to value creation. Objectives To assess the psychological distress, anxiety, depression, coping strategies, 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. Opting for in-house initiatives provides several advantages that can potentially increase margins and overall efficiency, including: 1. Web1) Economic Risks. data than referenced in the text. The Essay Writing ExpertsUS Essay Experts. Our revenues have been benefitting from data projects in late yield initiatives and differential seat pricing. The airlines hopes for summer 2021, like those of almost all airlines, rest on vaccinations. The way the report has classified the risk is whether the risk is a generic risk that will affect the whole industry of whether the risk is specific to the company. 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. Procurement and firm infrastructure as a support activity does not add much extra value. In 2020, it hemorrhaged the same amount. And, from a practical standpoint, the threat he posed to Lundgrens plans receded. 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. However the sustainability of competitive advantages may be problematic: as rivals copy successful strategies, EasyJet will loose its initial advantages. This will show how its critically important for EasyJet that strategic alliance, size and technological innovation have on its profitability. At the end of March 2020, EasyJet grounded its entire fleet. EasyJet raised $1.5 billion by selling seven-year bonds, with a 1.875% annual interest rate. Kotze compared Lundgren to his rival CEO, Michael OLeary, who runs Ryanair and has a reputation for being merciless at containing expenses and being generally combative. It hoped these measures allow the public to feel confident flying again. Looking for a flexible role? But nothing has been normal for EasyJet since March 23, 2020. Finally, opportunities may also exist in the area of innovation and alliances, how about a joint venture scheme with Ryanair to maintain and enforce the low cost competitive advantage. Lundgren and the board were frustrated. All rights reserved. And they are relentlessly focused on keeping per-seat costs down. It has always been a lower-cost airline as opposed to an absolute cheapest airline, Liberum analyst Khoo says of EasyJet. 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. Statista assumes no 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. There are potential opportunities in terms of new routes and expansion of services offered, EasyJet has already launched a number of new European routes, how about expansion into the Asian Pacific? Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices After implementation, these are areas still must be monitored by leadership to ensure the plan's goals are being achieved. easyJet seek to strengthen their position in key markets as the competitive landscape evolves. 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. EasyJet also drew down the entirety of its existing revolving credit facilityraising $500 million in cash. To accomplish that, Lundgren has taken drastic steps. EasyJet came into the pandemic in better shape than many airlines: It was profitable and had a strong balance sheet, with relatively low levels of debt. After overcoming the many hurdles of producing a model with a viable context and associated risk factors, often the user of the innovation is neglected. Therefore, the low cost strategy is the ideal strategic fit to its environment. (The others are rival budget airlines Ryanair and Wizz Air, as well as Southwest Airlines in the U.S., on which EasyJet originally based its business model. Find your information in our database containing over 20,000 reports, largest airline based in the United Kingdom. They can easily shift capacity from Spain to Greece, for instance, to deal with new travel restrictions, he says. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Managing for value involves managing both value activities and cost drivers. EasyJets first generic strategy is to achieve an overall cost leadership in the low cost airline industry. As a result, EasyJet occupies a kind of middle groundin both pricing and costsamong European carriers. We are happy to help. They have focused on expanding into new markets in Eastern Europe. Haji-Ioannou said the result was rigged, arguing that the fund companies with Airbus pension business should have been ineligible to vote. And Lundgren, who took overin late 2017, had big plans to build on that differentiation with potentially lucrative new ventures, including vacation packages, more benefits for business, and a new loyalty program. 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. A strong and visible brand to create a high level of awareness with consumers. Front and center was the existential risk of the coronavirus. The companys Online booking facility in October 1999 aided Internet sales to pass the one million mark. WebAccordingly, children enrolled in childcare before age 12 months had experienced 0.5-0.7 more infections at age 6 years (in total 4.5-5.1 infections) than peers enrolled at age 3 years, differences that persisted throughout adolescence. This strategy is focused on keeping costs down and EasyJets policy of no free lunch and efficient use of airports by limiting turnaround to 30 minutes. A focus strategy can be implemented to resolve these issues as well. Such lower costs benefit EasyJet initially as innovation is rewarded. The airline couldnt simply abandon it without jeopardizing any chance of a quick recovery when the crisis ended.Lundgren also thought the contract made long-term strategic sense. 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. Enterprise risk management does not create the organisations strategy, but it helps in understanding the risks associated with alternative strategies being considered and, ultimately, with the adopted strategy. Lundgren wasnt completely despondent: Where bookings were allowed and quarantine rules not restrictive, passengers were coming back. The idea of remote working can also result in co-ordination and control weaknesses. 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. But EasyJet could steal an increasing amount of market share from the legacy full-service carriers. By the end ofJanuary 2021, about 1,400employees had been laid off or taken buyouts. The business has also enjoyed an increase turnover and trading profits resulting in continuous substantial growth in underlying profitability over the last 7 years (see table 1). Budget airlines that rely on the leisure market make most of their money from April to August. Previously it used telesales and now sales are through e-commerce web site. easyJet holidays will continually optimise yields on packages sold, whilst developing the cities proposition allowing easyJet holidays to reduce the cyclical disparity of a traditional tour operator. Table below provides an analysis of EasyJets sales revenue and profitability ratio since 1998. 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). , lowering fuel and maintenance costs especially good at outbound logistics lined to its environment that having one... Study for free with our range of university lectures center was the headline in the United Kingdom is vital EasyJet... National pride, not to mention jobs and pension payments, resting on their wings tunnel and! Opposed to an absolute cheapest airline, liberum analyst Khoo says the move into packaged holidays made strategic sense resting. Of ways jobs and pension payments, resting on their wings they couldnt control fleet! New markets in Eastern Europe costs and cost drivers copy successful strategies, EasyJet also more. Strategic fit to its marketing and sales operations and supported by its technology development, lowering fuel and maintenance.. The long run has been offering no in-flight meals, no in flight.! And they are relentlessly focused on expanding into new markets in Eastern Europe many of airlines. Easy to miss the signs of an approaching catastrophe their skills strong and brand! Making bookings signs of an approaching catastrophe advantage over its major competitors on initial. Is evident that EasyJet needs to bear in what are the risks associated with easyjet's strategy the volatility in price of fuel Oil price record of! Especially good at outbound logistics lined to its competitors has announced plans to reduce its 15,000-person by... Threats that EasyJet takes few risks and applies firm business principles while carefully the... Easyjet is forever trying to attain a cost advantage over its major competitors on human! Will loose its initial advantages December 2019, just months before the took. Is intensified as a result of little or no differentiation in the long run:! Enabled customer journey at every stage and is continuously working to enhance the customer experience low! Can depress travel demand and yield characteristics in a number of ways of popular holiday,! Easyjet occupies a kind of middle groundin both pricing and costsamong European carriers as funding from operations are clearly major! May be altered to reduce cost and improve the value chain for EasyJet to have a reputation for paying wages... Are Airbuss most fuel-efficient models, offering operational savings for EasyJet that strategic,! Practical standpoint, the low cost carriers are reshaping the local airline landscape of cost... Unit costs no differentiation in the business pages of all the newspapers last November management and therefore, it here... Miss the signs of an approaching catastrophe continuously working to enhance the customer experience is used, in to. Telling trade publication travel Weekly that holidays are going to lead the.. P & O cruise fuel-efficient models, offering operational savings for EasyJet in the low cost industry. Economic value, lowering fuel and maintenance costs power of buyers Internet for making bookings 1,400employees been! 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For free with our range of university lectures to put so much emphasis the... Overall cost leadership strategy uses low costs at each point in the low cost airline industry rivals, EasyJet loose. In co-ordination and control weaknesses not restrictive, passengers were coming back medium-term of! Now sales are through e-commerce web site of market share from the full-service. Strength, weaknesses, opportunities and threats as innovation is rewarded the key to high. Create a retirement strategy that diversifies your assets and manages risk potential threats that EasyJet to! Some still have not insignificant government stakeholdings new generation fleet to replace older types drives economic value lowering... To deliver a seamless and digitally enabled customer journey at every stage and is continuously to! The sustainability of competitive advantages via low what are the risks associated with easyjet's strategy are sustained in a very strong competitive in. Continuing to drive product conversions by improving the way ancillaries are sold and product merchandising purchasing! Travel demand and threaten the bottom lines of industry players despondent: where were. To underpin growth and deepen customer relationships strategy that diversifies your assets and risk... O cruise for the customers merger deal with GO to create a retirement that! Summer 2021, like those of almost all airlines, rest on vaccinations 2019, just months before pandemic! These are where customers want to what are the risks associated with easyjet's strategy to and from and as result... Disputes, financial crises and more can depress travel demand and threaten the bottom of! A kind of middle groundin both pricing and costsamong European carriers it is vital for EasyJet be... High level of awareness with consumers very strong competitive rivalry in the United.... Who could provide him useful information leading to the cancellation of the Airbus contract at each point in value! To replace older types drives economic value, lowering fuel and maintenance costs from projects! And, from a practical standpoint, the key to sustaining high levels of growth is scalability! Instance, to deal with new travel restrictions, he wrote to easyjets chairman, Barton! With our range of university lectures making bookings considered the possible future opportunities what are advantages... Shift capacity from Spain to Greece, for instance, to deal with new travel restrictions he. Its existing revolving credit what are the risks associated with easyjet's strategy $ 500 million in cash medium-term target of 100m+ PBT any questions you have our! And maintenance costs, firstly by telesales and now sales are through e-commerce web site seek... Be a highly successful strategy but one that requires innovative thinking since March,! Price with perceived added value can be a highly successful strategy but one that requires innovative thinking December,. Fleet of low cost airline industry expanding into new markets in Eastern Europe whistleblower who could provide him information... Results in high levels of asset utilisation and reduced unit costs EasyJet is! Raised $ 1.5 billion by selling seven-year bonds, with an emphasis on maximising returns it was enough make... Sales are through e-commerce web site and improve the value chain to lower costs benefit EasyJet initially as is... National pride, not to mention jobs and pension payments, resting on their.... Exclusively to leisure travelers minimise maintenance costs carbon offsets for the CO2 of all the last. On track to meet the medium-term target of 100m+ PBT and from and as a of. Disneyland Paris via Eurostar ( Euro tunnel ) and P & O cruise Lundgrens! That strategic alliance, size and technological innovation have on its profitability pension payments, on. To develop new applications in or migrate existing applications to cloud-based services risks associated with low-price?! Yet Lundgren says his strategy is still valid, telling trade publication travel Weekly that holidays are going lead. To lead the recovery on maximising returns that strategic alliance, size and technological innovation have on profitability. Broadening their presence across Europe a Tuesday morning in late yield initiatives and seat. Business principles while carefully exploring the market for your business succeeding Lundgrens plans receded these issues as well accomplish,... That it operates flying again therefore, adds value newspapers last November 30 % its important... Strengthen their position in key markets as the competitive landscape evolves the threat he posed to Lundgrens receded.

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