Strong operational efficiency leading to a low-cost model. The facility, located in Essex, around 50km east of the UK capital, announced a pre-tax loss of 21.5m for the year ending February 28, 2022. The organisation mainly expands through acquisitions 4. This report will consist of an analysis of EasyJet's macro and micro marketing environment. External Impacts 5 3.1 Price 4 Bennett. Having objectives in a business is very important because it brings goals that the business needs to reach and also allows the company to be united. A Market Leader As Europes fourth largest airline car- rying more than 68 million passengers annually, easyJet has been highly suc- cessful in an increasingly competitive European travel market. Free EasyJet Essay Topic Generator. Being competitive means the ability to withstand the market demand, ability . EasyJet was strategically located, Premium References: list (Jones 2007) In 1996 they replaced the leased aircraft by purchasing four second-hand aircraft. School Number: 110131060 3.4 Place 8 This company bases its competitive strategy in cost leadership approach (supply same service at lower cost) and is double the size of easyJet in terms of profit. Since its launch the site had taken more than 800000 bookings by March 2000. easyJet is one of the world's most successful low-cost airlines. The company sells its own tickets directly to the user trough the Internet, Premium Stakeholders can affect or be affected by the organization s actions objectives and policies. From the annual report 2008 of Easyjet, it can be found that its total revenue is increasing for example- in 2008 Easyjet's total revenue was 2,362.8 million and in 2007 was 1,797.2 million but for recession it may reduce this year. Telephone Management [11][31][33][34], On 18 June 2013, the airline announced an intention to acquire subject to shareholder approval 35 Airbus A320 aircraft, for delivery between 2015 and 2017, and 100 Airbus A320neo aircraft for delivery between 2017 and 2022. McDonalds PLC is one of the largest fast food chains in the world with 32000 outlets in 117 countries. folder_openmexicali east border crossing The organization can be of any kind meant to realize certain goals by the society. The UK alone is a 13bn market and has grown by 6% annually," according to a company spokesperson. [95], EasyJet plc. Germany Low-cost carrier Due to the research (EasyJet.com 2011) has noticed that over 600 routes across more than 30 countries have been functioned. [50], Initially, EasyJet's employment strategy was to maintain control with minimal union involvement. EasyJet under fire as flight chaos exposes carrier's operating model. 3.1.5 Credit terms 5 EasyGroup Holdings Ltd (the investment vehicle of the airline's founder, Greek-Cypriot businessman Stelios Haji-Ioannou, and his family) is the largest shareholder with a 15.269% stake (as of September 2021). British Airways Future expansion 12 should consider the following legal factors when exploring a new market. Executive Summary 1 In addition there are different levels of stakeholders: primary and secondary. Strategic management, Stakeholders 2.2.4. Easyjet was founded in 1995 by Sir Stelious Haji-Ioannou, it's a private limited company owned by Easy Group and it's also listed on the London Stock Exchange. May / 15 2013. Stakeholders are individuals (or groups) that can either impact the success and execution or are impacted by a product. Germany Southwest Airlines. Easyjet has benefits from low price just . Sort By: Satisfactory Essays. The cookie is used to store the user consent for the cookies in the category "Performance". [65], On 27 September 2017, EasyJet announced its partnership with an American start-up company Wright Electric with the purpose of developing and introducing a short-haul 120-seat all-electric airline. This company bases its competitive strategy in cost leadership approach (supply same service at lower cost) and is double the size of easyJet in terms of profit. The aim of this business is to provide and develop products for athletes of every ability and to make sure their products help athletes reach their potential. Severe disruption hits airline, with a major factor being its reliance on capacity-constrained airports such as Gatwick . Ways of Working Strategy. 2 Brief history of KLM 3 Between 2003 and 2007, it opened additional bases in Germany, France, Italy, and Spain, establishing a presence in continental Europe. DALLAS - Esken, the owners of London's Southend Airport (SEN), could be put up for sale after the pandemic saw passenger numbers plummet by 90%. [22], On 5 November 2000, EasyJet was floated on the London Stock Exchange. [4], Since its establishment in 1995, EasyJet has expanded through a combination of acquisitions,[10][11] and base openings fuelled by consumer demand for low-cost air travel. Low-cost carrier Alternatively, customers can book accommodation separately at the EasyJetHotels website. [37], On 30 March 2020, EasyJet suspended all flights, grounded its entire fleet, and furloughed its crews due to travel restrictions imposed. "The total European package holidays market is worth around 61bn per year we know customers want holidays with various durations and not the traditional seven and 14 nights. Stakeholders can affect, Premium Project management, Steps in Identifying Stakeholders This Case Study details the rapid growth of easyJet which started operations in November 1995 from London's . [78] In January 2017, the company was fined 60,000 by another French court because it had refused to allow a disabled passenger to board in 2010; the company cited security concerns and internal regulations, but said it would not appeal against the ruling. EasyJet was founded by Haji-Loannou in 1994. 1 Brief history of Easyjet 3 Name: Doancan Yksel The primary driver of the cost is the re-registering of aircraft in an EU AOC jurisdiction. They contracted to buy 12 brand new 737s from Boeing in 1997. By introducing the no-nonsense theory to the European market after its deregulation in 1992 easyJet did prove power by increasing the size of the low-cost market and winning passengers from prominent traditional airlines, Premium Memmingen or "Munich West", which is about 1.5 hours west of Munich to be precise). Q1: How do easyJets marketing objectives and marketing mix strategy affect its pricing decision? Columbia Business School 0 Columbia University New York NY 10027- ok2018@columbia.edu As such any organization must strive to identify its stakeholders and their specific needs, Premium The Haji-Ioannous have sold 76.3 million nil paid rights at 1.65, a 15 per cent discount to the closing price of the rights on Thursday, said the source. [18] While studying various business models in the industry, Stelios took a significant interest in the American operator Southwest Airlines, which had successfully adopted the practice of price elasticity to be competitive with traditionally cheaper buses and attract customers that wouldn't normally have considered air travel. Best Essays. Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. ", "EasyJet paint job makes fuel bills less of a drag", "EasyJet looks to AI to cut delays and deliver its bacon butties", "easyjet will launch first electric plane in 2019", "EasyJet makes progress with electric aircraft plan", "EasyJet to offset carbon emissions from all its flights", "Sustainable flights, easyJet and Airbus work on zero-emission aircraft | SmartGreen Post | news from the environment", "EasyJet urges new tax to replace air passenger duty as part of green push", "EasyJet ads criticised over green claims", "EasyJet discriminatory wheelchair policy", "EasyJet accused of discriminating against disabled passengers", "EasyJet loses disability discrimination case in France", "French court fines easyJet over refusal to let disabled passenger board", "EasyJet threatens not to let passenger board after he criticises airline on Twitter", "Passenger sues easyJet after crew told her to move seats to satisfy ultra-Orthodox Jews", "EasyJet Europe nimmt Betrieb mit sterreichischem AOC und Betreiberbewilligung auf", "EasyJet confirmed as UK airline, despite EU ownership", "Transaero Airlines and EasyJet Sign Commercial Agreement Press Statement", "Transaero to Cease Operations October 26", "EasyJet to Halt Moscow Flights on Slumping Demand", "easyJet (Group) Fleet Details and History", "Pictures: EasyJet's first A321neo makes Farnborough debut", "Snub for Boeing as Airbus lands EasyJet deal", "EasyJet's losses widen on sterling weakness", "easyJet takes delivery of first A321neo", "EasyJet orders 12 more Airbus A320neo aircraft", "easyJet confirms order for a further 56 A320neo Family aircraft | Airbus", "easyJet Firms Order For 56 Airbus A320neo And Upsizes 18 To A321neo", "Q&A with easyGroup's Stelios Haji-Iaonnou", "EasyJet wins reservation system copyright case", "EasyJet Boosts Order For Airbus A319s By 52 Aircraft", "EasyJet launches EasyJetHotels with Hotelopia as its new exclusive accommodation partner", "The death of traditional, inflexible package holidays EasyJetHolidays gives total flexibility of hotel and low-cost flight combinations", "Financial Protection for package holidays booked with EasyJet", "EasyJet relaunches package holiday business", https://en.wikipedia.org/w/index.php?title=EasyJet&oldid=1141591126, Older aircraft are to be retired and replaced by A320neos, In the Airbus Cabin Flex (ACF) configuration, Both aircraft (G-BECG/G-BECH) were transferred to, This page was last edited on 25 February 2023, at 20:51. To have happy customers a firm ha sto create expectations and meet them. A stakeholder is a person group or organization that has interest or concern in an organization. The Airlines industry is quite highly sensitive to the environmental factors and is profoundly affected by the changes in the political social or the economic environment. Employees - they want to be . (2020) call for research investigating how specific stakeholders get unvalued during the pandemic. The Airline markets success or future lies through marketing because this sector is in competition with other modes of transportation such as bus high-speed train. This includes treating employees, customers and suppliers fairly, avoiding polluting activities and contributing positively to the lives of people in the local area. Maintaining high customer satisfaction ( low prices and high quality can be pursued together) We also use third-party cookies that help us analyze and understand how you use this website. But stakeholders can also be employees, bondholders, customers, suppliers and vendors. It is very difficult to classify easyJet's social responsibility activities. Three investors in easyJet <EZJ.L> have thrown their weight behind the British airline's management in their battle with the founder and biggest shareholder Stelios Haji-Ioannou over a 4.5 billion . but lacking of traditional service. [25 marks] Shareholders [126], A mid-November 2019 report indicated that the company planned to relaunch the package holiday business, after the bankruptcy of former competitor Thomas Cook.[127]. PICTURE CONTENT v Easyjet is a low-cost airline with headquarters in Londons Luton Airport. This principle became a cornerstone of EasyJet's operations. Airline EasyJet has a unique geographical location because it was born in England. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. British Airways 3.6 Physical evidence 11 3.5.3 Customer support service 10 Passengers occasionally had to wait longer for reimbursement of their expenses. I/ Easy Jet : General Overview Easyjet Plc managers can use Porter Five Forces to understand how the five competitive forces influence profitability and develop a strategy for enhancing Easyjet Plc competitive . To effect and to offer a consistent and reliable product and fares appealing to lesuire and business markets on a range of European routes. Unfortunately, early last year, it became the victim of a cyber-attack in which data of 9 million of its customers was compromised. Executive Summary 1 [48] One main difference EasyJet and Ryanair have from Southwest is they both fly a young fleet of aircraft. [60][61] Speaking at the time, EasyJet chief executive Andy Harrison commented that: "We have not developed a new concept. Based on this evaluation, EasyJet exchanged 25 A319 orders for A320s in July 2008 and later removed the A321 aircraft from the fleet. CSR, credibility, employees' rights and legitimacy during a crisis: a critical analysis of British Airways, WizAir and EasyJet cases - Author: Rasha Kassem, Aly Salama, Chanaka N. Ganepola . Primary or secondary. These were flown on two routes: Luton to Glasgow and Edinburgh. Starting from this awareness easyjet become one of Europes first low cost airlines by adopting : [14], EasyJet was featured in the television series Airline, broadcast on ITV (19982007), which followed the airline's operations at London Luton and later at other bases. [18] EasyJet initially operated a pair of wet leased Boeing 737-200 aircraft, capable of seating 130 passengers. The first strategy is believed to enable EasyJet to attain the student segment of the market and the second one should help to boost brand awareness (Bader 2015). Strategic management Explore the key stakeholders of EasyJet and map in terms of their power and interest. [20], In March 1998, EasyJet purchased a 40% stake in Swiss charter airline TEA Basle for three million Swiss francs. Passengers can pay an additional fee for certain seats such as the front few rows and overwing seats (which have extra legroom). Other executives of the airline saw the potential and approved a website trial involving putting a different telephone reservation number on the website to track success. Powerful Essays. Strengths EasyJet has established a brand reputation for being the most economical airline in Europe. EasyJet expects a one-off cost of around 10 million over two years with up to 5 million incurred in the 2017 financial year. With the demand on transportation and advancements on technologies airline industry became one of the fastest developing industries on the world. The marketing decisions of the industry are to an extent based on political decisions. [18] Despite commercial pressure from the emergent no-frills sector, traditional airlines have been unable to directly adopt similar practices to EasyJet due to vigorous protection of existing employee privileges by unions. Ryanair They also offer other advantages to business passengers as for example: boarding the plane among the first, going through fast-track . Working in partnership with other stakeholders across the broader Commercial team and other departments to bring together a more holistic approach to Trading and Revenue Management. EasyJet endeavours to respect the principles of the ILO . [80], On 27 August 2020, the airline was sued by a woman over discriminatory concerns. As a result the low-cost airlines (LCA) are flourished. Mainstream airports (mostly): One of the main complaints I have about budget airlines in Europe is often they fly out of the most random little airports that are actually miles and miles away from the actual city they claim to be in (e.g. Airline Environmental impacts 9 They influence the companys decisions as they are the main say of it. Click on the link below to read more.--> We have a clear focus on building strong relationships with customers to create more sustainable, long-term revenues leveraging quality, innovation and digital. They have expanded massively and now in England there are now over 3300 stores in the UK alone, Premium Low-cost carrier This problem has been solved! Initially it used Boeing 737 aircraft exclusively, but in October 2002 it ordered 120 Airbus A319 aircraft, plus 120 options. Airlines which fail to comply with strict, Premium [22] In October 2004, the FL Group, owner of the airlines Icelandair and Sterling, purchased an 8.4% stake in the airline. BMAN72801 [28], On 25 October 2007, EasyJet purchased the entire share capital of GB Airways from the Bland Group. Brand The business generated revenue per passenger of 58 compared with a cost per seat including fuel of 53. London Gatwick Airport The perceived quality refers to; A customer opinion of a product value to him or her. London Gatwick Airport Staffing and recruiting 10 Stakeholder analysis Participating in the development of business processes, reporting, and training to bring easyJet Strategy to life. US Airways. [22], In December 1997, one of EasyJet's design and advertising agencies suggested to Stelios Haji-Ioannou that he should consider trialling a website for direct bookings. These are stakeholders who are directly affected by a project, such as employees. [112], The airline's main fleet, comprising Airbus A319, A320/A320neo and A321neo aircraft, carry up to 156, 180/186 and 235 passengers respectively, depending on layout. 2.6.2.1 Employee protection laws (discrimination and health and safety) Easyjet Plc. First choice brand and increasing customer loyalty. Low-cost carrier The authors' study argues that the social . [76] In separate incidents in 2012, paralympians received similar treatment,[77] and a French court found the airline guilty of three counts of disability discrimination. DON SULL London Business School and Commentators Constantinos Markides Walter Kuemmerle Luis Cabral. DEVELOPMENT SUGGESTIONS Shareholders . EasyJet the airline industry was founded in 1995 by Stelios Haji- Ioannou and from thence struggled to maintain their competitive position in the airline industry. 5. She added that the A321neos would help to cut costs by 9 per cent. [104], On 19 November 2019 EasyJet ordered an additional 12 A320neo, taking the total neo orders, including the A321neo, to 159. Technological impacts 8 You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Competitors and competitive advantage 11 Brand management, Despite an increase in operating costs in 2010 Easyjet has achieved a remarkable performance compare to 2009. It was claimed to possess improved fuel efficiency over contemporary airliners. EasyGroup Holdings Ltd (the investment vehicle of the airlines founder, Greek-Cypriot businessman Stelios Haji-Ioannou, and his family) is the largest shareholder with a 15.269% stake (as of September 2021). They Include * Government in its role as guardian of the national economy * Government in its role as regulatory authority * Government in its role as shareholder * Shareholders of airline companies * Managements of airline . A typical Airbus A319 carries 150 or 156 passengers depending on layout in a single-class configuration, but as the airline does not serve meals on its shorter flights, it opted for smaller galleys and had a lavatory installed in unused space at the rear of the aircraft. Aviation is a strategically important sector making a vital contribution to Europe's overall economy and employment. The airline modernised the building and painted it orange. We will write a custom Essay on EasyJet Company's Strategic Analysis and Marketing specifically for you. INTRODUCTION vii We use our cost advantage, operational efficiency and leading positions in primary airports to deliver low fares, seamlessly connecting Europe with the warmest welcome in the sky. Stakeholder groups vary both in terms of their interest in the business activities and also their power to influence business decisions. Southwest Airlines 3.3 Promotion 7 The Annual General Meeting will be held on Wednesday, 23 December 2020. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor. Organization, Stakeholders It was a shaky start but one that would grow into a stable foundation. Airline, MARKETING RESEARH PROJECT Debt It has seen an increase in customer loyalty in its core markets. EasyJet undertook intensive research of a United States owned low-cost airline Southwest Airline. European Countries Collaboration and good relationship making EU politically stable. Updated: Feb 28th, 2023. [20], In April 1996, the first wholly owned aircraft was delivered to EasyJet, enabling the company's first international route, to Amsterdam, which was operated in direct competition with rival airlines British Airways (BA) and Dutch flag carrier KLM. Branding 11 Once Haji-Ioannou saw the results, he changed his mind and an e-commerce website capable of offering real-time online booking went live in April 1998; this was the first such website for a low-cost carrier in Europe. Air France By September 2000 85% of total, Premium [10 marks] b) Explain the positioning of each stakeholder and the strategic implications for EasyJet. Each of the types of stakeholders in a business are categorized in 3 ways: Internal or external. The group, along with associate companies EasyJet UK, EasyJet Europe and EasyJet Switzerland, operates 308 aircraft. With number 1 and 2 market share positions in key airports across Europe this year EasyJet have been voted one, Premium Case Study easyJets $500 Million Gamble EasyJet's biggest shareholder, the . The airline's loyalty programme is called Flight Club. 5 Recommendations Guided by analysis of survey results, the report offers some key recommendations on areas for future work: Develop capacity-building and learning activities to support meaningful and inclusive stakeholder engagement, especially online engagement. EasyJets Business Model Analysis Passengers may purchase items on board from the "Eat Drink Shop" buy on board programme. Quality Glossary Definition: Stakeholder. Southwest Airlines Stock market Easyjet stakeholders.Then evaluate the other options which will bring to the fray better returns. EasyJet is offering shareholders 31 new shares for every 47 already held, at a price of 410p. [22] The specific color that EasyJet uses closely resembles that of the telecommunications corporation Orange and was a subject of dispute between the two companies in 2004 when easyGroup launched a mobile phone subsidiary, easyMobile. The new airline is headquartered in Vienna and will allow EasyJet to continue operating flights across and within European countries after the UK leaves the EU. In addition to this average fare advantage, easyJet's highly dynamic revenue management system . The coating has already been used on US military aircraft and if successful EasyJet would apply the paint to its whole fleet. Strategic management A general meeting was held on 22 May, where shareholders ultimately voted over 99% in favour of the EasyJet board and retaining the Airbus contract. [21], Until October 1997, all of EasyJet's aircraft were operated by GB Airways, and subsequently by Monarch Airlines and Air Foyle, as EasyJet had not yet received its Air Operator's Certificate. In 2017, EasyJet Plc flew 80.2 million passengers on flights that carried 86.7 million seats. Employment, Stakeholder 1: Owner as they have the biggest say on the company and its decision. In the sense these parties anticipate many from the organization. 2.6.2 Legal factors that influence Easyjet Plc. They have the interests in the activities of an organization and can be divided into internal and external stakeholders. Stock, A stakeholder is any individual or group who can affect or is affected by the actions decisions policies practices or goals of the organisation (Freeman 1984 25). [103], On 20 November 2018 EasyJet ordered an additional 17 A320neo, taking their total neo order, including the A321neo, to 147. Stakeholder theory. Carbon dioxide, organization. 1. The other kind is more responsible where profit maximization is subject to ethical restraints, appropriate discharge of the company's social responsibility, and a balanced concern for the needs of all the stakeholders, not just the promoters. It is more suitable for students and ordinary income people. Introduction EasyJetHotels offers accommodation products throughout the airline's network. [51], Since the start of the COVID-19 pandemic until August 2020, EasyJet raised over 2.4 billion in new finance. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. A stakeholder is someone who holds and interest in the company. [72][73], EasyJet has campaigned for the UK to replace air passenger duty (APD) with a new tax that would vary depending on distance travelled and aircraft type. This essay sample on Easy Jet Case Study provides all necessary basic info on this matter, including the most common "for and against" arguments. EasyJet passengers whose card details were stolen in a "highly sophisticated cyber-attack" say they have been left frustrated and in limbo by the airline's response. EasyJet confirms, "The airline, along with subsidiary airline easyJet Switzerland, now operates over 200 aircrafts, mostly Airbus A319 5 ". The first "upstream" category includes everyone who must contribute to or approve the activities required to design, build, and bring the product to market. Answer (1 of 4): A number of these stakeholders can be Identified. Collect and evaluate economic factors which might influence EasyJet general business environment. Table of Contents Thirdly with all the information we use them to answer 5 questions about the case-study in the text-book. This will secure the flying rights of the 30% of EasyJet's network that remains wholly within and between EU states, excluding the UK. [35], In July 2017, EasyJet announced it would open a new European headquarters in Austria to enable it to operate after Brexit. "The board has concluded that it is in the best interests of all stakeholders to secure the long-term . [64] In late 2015, EasyJet started making use of artificial intelligence (AI) and big data for the purpose of improving efficiency, cutting costs, and enhancing the customer experience. That resulted in heavy post-tax financial losses of 21.5million in February 2022. Also the condition of the world economy determines the nature of its marketing policies. [83], EasyJet announced that the transition would result in no job losses in the UK, as the staff to be employed by EasyJet Europe are already based in the EU27.

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