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Easyjet: the Web's Favorite Airline

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Submitted By guddms67
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EasyJet: the web's favorite airline

The case pertains to the growth and sustenance of EasyJet airlines, a low-cost carrier operating in the European skies. EasyJet’s concentration has so far been on low-cost airline services to the masses, and although it faces competition from other low-cost carriers as well as major carriers, it has been able to successfully sustain its business and turn around an initial loss into profits of £2,318,938 [exhibit 2].
EasyJet’s value proposition has been to offer a cheap, punctual, safe, no-frills method of travel to people who generally paid out of their own pockets. This has been possible thanks to an efficiency-driven operational model, high brand awareness and a sustained focus on satisfaction of customer expectations, often exceeding them. The emphasis has been on “value for money” and affordable quality travel with an added emphasis on customer satisfaction. Being a low-cost carrier, customer expectation were minimal and thus brand new planes with the best of pilots and punctual flights was clearly successful in delighting the customer, as evidenced by the high number of repeat fliers. A lot of emphasis was given to customer satisfaction offering better customer flexibility and punctuality.
EasyJet’s competitive advantage has been derived from a policy to cut down on costs and hence frills in every aspect of short distance travel. EasyJet has been modelled after a very successful South-West airlines and it also managed to enjoy first-mover advantage in the European aviation industry as a low-cost carrier. However the trick to being successful for EasyJet has been the manner in which it has adapted its model to the specifics of the European market. No in-flight food was offered; booking was mainly internet-based thus bypassing travel agents and their attached commissions. EasyJet flew from London’s Luton airport and not the

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...study: EasyJet: The Web’s favorite airline Introduction In modern world, easyJet is becoming one of leading airline companies in Europe. When people want to buy cheapest airline tickets, they always consider easyJet. This essay will have three sections. Firstly, analyze the structure of the industry in which easyJet competes. Secondly, talk about the industry attractive after later 1990s. Lastly, some evidence will be provided to suggest that easyJet has competitive advantage. Structure of the industry analysis - five forces model The business structure was influenced by industry competition; the industry competition depends on five basic competitive forces which were threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or service and rivalry among existing firms (porter, 1980). Threat of new entrant: EasyJet airline belongs to airline industry, new entrants want to go into this industry need enough capital and the equipments in this industry were all expense. In order to build up an airline company, the founder needs to have enough money to buy or lease some planes. So the new entrants have a high cost of entry. In addition, the new potential entrants also need some extra capital to pay for the losses due to less of experience. Low-cost tickets in EasyJet were the significant competitive advantage. The new entrants were hard to exceed EasyJet. So the threat of new entrant has low competitive to EasyJet. However...

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