EASY JET CASE STUDY

Easy Jet Case Study



Easy Jet Case Study

Introduction

Easyjet was established in stride 1995[Key events in our history, Easyjet, 2004], with low-cost air travel from London's Luton aerodrome to Glasgow and Edinburgh in Scotland. The flights were full, and the demand for low-cost flights grew rapidly all through the whole country. Since then, Easyjet was intensified on increasing itself and raised added finance to invest in added aircrafts.

Today, Easyjet is one of the Europe's leading low-cost airlines offering 105 routes to 38 key business and leisure airports in Europe [2003 Annual Report and Accounts, Easyjet, p 16, 2004].This is proved by their corporate figures, with a total turnover of £932 million and pre-tax profits of £52 million in 2003 [2003 Annual Report and Accounts, p 4, Easyjet, 2004]. They are by no means labouring to hold up. With a customer groundwork that has consistently developed from the first air travel to an outstanding 20.3 million [2003 Annual Report and Accounts, p 4, Easyjet, 2004] passengers in the 2003 economic year, the company has gone from strength to strength.

Although, Easyjet stands at a very strong place in the commerce, but there are furthermore other companies that are offering similar services, its major reduced cost carrier competitors are Ryanair, Virgin express, Buzz and British Midlands etc.

Mission statement

To supply our customers with safe, good worth, point-to-point air services. To effect and to offer a reliable and reliable product and fares appealing to leisure and enterprise markets on a variety of European routes. To achieve this we will evolve our persons and establish lasting connections with our suppliers. [Easyjet objective declaration, data load, Easyjet, 2004]



Situation Analysis

Strengths

Akey strength that Easyjet have been adept to evolve over the years is that it has a very effective process of management. For demonstration, the technological operation of online booking that it employs has advanced the effectiveness of the administration and saved cost. As Ray Webster [2003] asserted -"Over 90% of sales are online" [2003 Annual Report and Accounts, Easyjet, p 15, 2004]

Another strengthening aspect that Easyjet taken up was the status and the emblem awareness. Punctuality was significant to Easyjet, because clientele approval was closely connected to punctuality in periods of responding to customer needs and maintaining a powerful clientele base. One demonstration of this is Easyjet allows the public to outlook their flights' "arrival on time" statistics through their website [Easyjet, 2004].

Weaknesses

One of the foremost flaws for Easyjet at the moment is the downside of its merger with "GO", could be that more force is put on the management group, which can probably de-motivate and extend them, as the junction operation is now larger and more time demanding. Meanwhile, the change of association structure furthermore needed, this could produced matters in high cost.

Easyjet 2003 Annual Report and anecdotes summarized:

"charges of integrating the businesses of proceed go by plane and Easyjet were £7.9 million in economic year 2003(2002: £7.1 million)." [2003 Annual Report and anecdotes, Easyjet, p 23, 2004]

Another promise weakness is that ...