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EasyJet: Exploring the Success and Challenges of a Low-Cost Carrier Giant Case Study By Native Assignment Help.
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EasyJet is a well-known low-cost carrier with its main office in Luton, United Kingdom. It was established in 1995 and has since developed into one of the biggest and most well-known airlines in Europe, emphasising inexpensive air travel to various locations. With a point-to-point network covering local and international destinations in Europe and North Africa, the airline offers domestic and international services. The principle of EasyJet's business strategy is to provide inexpensive fares while retaining operational effectiveness (Di Vaio, 2020). It does this by concentrating economies of scale and maintenance expenses on a single aircraft family, the Airbus A320 series. In terms of its present environment, EasyJet faces several obstacles and chances. To respond, EasyJet, like other airlines, had to reduce capacity, put in place safety measures, and change its flight itineraries.
Figure 1: easyJet
The present study aims to analyse a range of operational, tactical, and challenging aspects of EasyJet. The initial segment provides an overview of EasyJet and its significance within the aviation industry. The report conducts a historical analysis of the airline's inception and pivotal moments by scrutinising the primary commercial activities of EasyJet, encompassing its route network, among other aspects. The report's primary focus is on the business model of EasyJet, specifically its low-cost carrier model, and the factors that contributed to its success. The Competitive Landscape section is here to shed light on the business environment in which EasyJet finds itself. To set itself apart and keep its competitive advantage, EasyJet has implemented strategic initiatives. Challenges in operations, such as those brought on by inclement weather, are being addressed by these new programmes. The report investigated how the COVID-19 epidemic impacted EasyJet's processes and how it returned. The most important answers are highlighted in the final section of the study, and the factors that have made EasyJet successful and look promising for the company's future are explored in detail.
The mission of EasyJet is to provide low-cost and convenient air travel to a wide range of customers. Ultimately, the company's goal is to "make travel simple and accessible to all." EasyJet strives to be the top low-cost carrier by providing reasonable prices, dependable service, and a comfortable travel environment.
An example of a hierarchical structure is the functional organizational structure used by EasyJet. Employees are organised into functional groups in a functional organisation, such as operations, marketing, finance, human resources, and so on (Verma, 2022). A departmental manager oversees each department in a functional area. While reporting to higher-level management, the departments work autonomously, concentrating on their duties.
To maintain successful collaboration and accomplish their strategic goals, companies like Easyjet must carefully manage and reduce the negative aspects of this structure.
Figure 2: EasyJet flight
The many divisions or parts of an organisation in charge of certain jobs and duties associated with attaining the organization's objectives are called organisational functions. These roles cooperate and support one another to ensure the organisation runs smoothly and is successful. Operations, marketing, and finance are the three core functions at EasyJet.
A group or organization's common values, beliefs, and behaviour are called its culture. It includes social interactions, unwritten regulations, and general business practices inside an organisation.
EasyJet's organisational culture significantly contributes to the company’s success. It’s common to characterise EasyJet's culture as entrepreneurial, emphasising creativity, effectiveness, and a client-centered outlook. The high levels of customer satisfaction result from EasyJet’s culture of customer focus and reactivity (Rodrigues, 2019). Employees are given the freedom to go above and beyond for clients, which will improve customer satisfaction. EasyJet's entrepreneurial and innovative culture fosters an attitude of effectiveness and continual development. This promotes resource efficiency, and operational excellence, which eventually boosts profitability. EasyJet's culture encourages employee involvement, ownership, and engagement. This encourages a good work atmosphere, improves staff motivation and morale, and helps with employee retention. The culture of EasyJet values being proactive and flexible in the face of change. Employees are urged to use their imagination, take reasonable risks, and act fast when market conditions change. This enables the business to maintain competitiveness and adjust to shifting client demands and market developments.
Figure 3: EasyJet to scrap carbon offsetting to focus on cutting emissions
Strength | Weakness | Opportinities | Threats |
Strong brand | Dependency on volatile fuel prices | Growing demand for air travel | Intense competition |
Cost leadership | Limited presence in long-haul markets | Expansion into new markets | Economic factor |
Extensive route network | Reliance on secondary airports | Digital transformation | Regulatory environment |
EasyJet has developed a strong brand presence as a top low-cost airline in Europe. Its brand is reliable, convenient, and affordable, drawing in a sizable consumer base (Mr?a, 2021).EasyJet can provide clients with affordable tickets thanks to its low-cost business style. The corporation has optimised its processes and introduced cost-saving initiatives to preserve a cost edge over its rivals. EasyJet runs a vast network of routes throughout Europe and North Africa.
Variations in fuel prices have a big impact on EasyJet's operational expenses. This exposes the business to fluctuations in gasoline prices, which may affect its profitability.EasyJet mainly offers short-haul flights, which reduces its vulnerability to the demand for long-haul travel (Morlotti, 2023). This can be a negative compared to rivals with a better presence in long-haul markets. However, unlike large hub airports, EasyJet's strategy of operating from minor airports may result in lower passenger volumes.
As the need for air travel continues to rise globally, EasyJet has chances to enhance its customer base and market share. EasyJet can enter new markets by focusing on underdeveloped client niches and expanding geographically. This can entail establishing new channels and expanding into developing markets.EasyJet has the chance to take advantage of the continuing digital change in the travel sector by utilising technology to enhance customer experience, streamline operations, and provide individualised marketing.
Numerous low-cost carriers and established airlines are battling for market share in the fiercely competitive low-cost airline sector. Increased competition may result in pricing wars, hurting EasyJet's bottom line (Ahmad, 2023). Economic downturns and political unrest may influence consumer travel expenditures, impacting EasyJet's sales and profitability. Changes in laws and regulations, such as those governing aviation and the environment, may be difficult for EasyJet to handle.
PESTLE analysis is a methodology for assessing the outside variables that may influence an organization's operating environment. Here is an EasyJet PESTLE analysis:
Conclusion
EasyJet is a well-known low-cost carrier with a large route network, a strong brand presence, and a customer-focused philosophy operating throughout Europe. The firm has succeeded in the aviation sector by using its advantages and overcoming its shortcomings. EasyJet’s flat organisational structure, which heavily emphasises employee empowerment and decentralisation, has made it possible to make decisions quickly and adapt to changing circumstances. Although this organisational style encourages productivity and creativity, coordination and communication issues may arise. EasyJet’s primary areas of operations, marketing, and finance interact and work together to maintain operational effectiveness, customer happiness, and financial stability. The alignment of these activities greatly influences the organization's success, which facilitates strategic decision-making, revenue optimisation, cost control, and performance monitoring. EasyJet offers an innovative, efficient, and customer-focused culture that values entrepreneurship. Due to its favourable effects on staff engagement, operational effectiveness, customer happiness, and changeability, this culture has contributed to the organization's success. When it comes to the outside world, EasyJet encounters both chances and dangers. The airline has possibilities to improve its market position and customer experience due to rising demand for air travel, growth into new markets, and digital transformation. However, fierce rivalry, economic considerations, governmental restrictions, and environmental issues threaten the organization's operations and financial success. EasyJet must manage these outside forces by monitoring market developments, adhering to rules, and implementing sustainable practices.
Overall, EasyJet's performance depends on its capacity to build on its advantages, counteract disadvantages, seize chances, and control dangers. The firm is well-positioned in the cutthroat aviation market thanks to its powerful brand, broad route network, cost leadership, and customer-centric philosophy. EasyJet can preserve its success and participate significantly in the European airline market by consistently adjusting to the changing environment, investing in innovation and sustainability, and having a customer-focused approach.
References
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