easyjet Essay

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1.0 Introduction The airline industry has undergone enormous changes over the past decade through liberalisation and deregulation. Due to this, new airlines have been able to enter and grow within the market. Some have been a success and some have failed. The airline industry has had to face and accept the new airline business concept, called low cost or no frills airlines. The low cost airlines have developed their value chains so effective in low cost operation that they are hard to imitate, especially for traditional airlines. In these conditions, traditional airlines have had to rethink their strategies and question the old business model. Easyjet has undoubtedly proved to be one of the success stories of the low cost no frills airline market. The following report undertakes an analysis of Easyjet and identifies issues in which a strategy has been recommended for the future of the companys success. Tools and models such as the PESTEL analysis, Porters Five Force analysis, SWOT analysis, Business model, and Value chain model have been adopted to help analyse and undertstand Easyjet as a whole and develop a strategy recommendation for the business. 2.0 Findings 2.1 Summary of current situation 2.1.1 Company description Easyjet is a low cost airline based at Luton Airport and is considered to be one of the largest low-fare airlines in Europe operating domestic and international schedules. The airline was established on 18th October 1995 by entrepreneur Stelios Haji- Ioannou and started operations on 10 November 1995. The aircraft was operated by GB Airways initially because the company had not received its Air Operation’s Certificate (Easyjet, 2008) Easyjet have followed the example of Southwest Airlines, an American company which favours a flat structure for its business model and also which implements cost- cutting

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