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Free EasyJet Analysis Essay Sample
EasyJet is the second largest and low-cost carrier airline in Europe. It was founded in 1995 by Sir Stelios Haji-loannou and is known to be part of the EasyGroup involving easyHotel, easyBus and easyCar. EasyJet serves major airports in critical markets whose segment targets include the business travelers because of its highly applauded convenience.
Threats
EasyJet is faced with a fierce competition from other flight companies such as Ryanair and Air Berlin which use same routes. The competition on prices imposes pressure on margin in terms of time slots and popular flights. Travelers may also prefer to use alternative modes of traveling such as trains and thus reduce the company’s returns. The external forces have had a significant impact on the business growth of EasyJet. For instance, the rising cost of oil prices greatly increases the running cost thus reducing profitability. The intense pressure from employee relations committee and the union also impacts daily operations where strikes have been known to taint the company’s image. There are also increased threats from terrorism activities which may create fear among travelers. Epidemics and other natural disasters such as the volcanic ash cloud which covered Europe in 2010 and the incidents of SARS have also been potential threats. There are general concerns about brand names such as the ease of copying brands and the type of brands which are highly confusing to the customers.
Weaknesses
EasyJet experiences high-density seating which seems to cause much discomfort to travelers taking long-distant flights. There are also hassles when it comes to changing bookings and the overreliance on price has not been received as the best strategy for the company.
Opportunities
The weakening of the Pound against the Euro has increased the demand for traveling to Britain from several European countries. The rising markets in China and Middle East have been seen to be great opportunities for EasyJet.
Strengths
EasyJets enjoys the capacity to fly to key airports and this has been convenient to business travelers with tight schedules. The company has low-cost offering with features such as reverse pricing system which have enhanced its service delivery. The ease of booking flights online and by phone has also increased returns and there is a general fast turnaround time for all aircrafts. The highly distinctive branding such as catchy slogans is one of the excellent features of the company.
