Case 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, after 1992 the European government passed legislation that the airline industry has deregulated, this could be good news for new entrants and threat for easyJet.

Bargaining power of suppliers:
Airplane supplier was the most important supplier for the EasyJet. In 1999 easyJet owned or leased 18 Boeing 737-300s plane (Kumar and Rogers, 2001). EasyJet developed very fast, it has