Swot And Pest Analysis Of Easyjet Tourism Essay

Swot And Pest Analysis Of Easyjet touristry EssayIn this chapter, I bequeath present position and analytic thinking the current position using both of used SWOT and pesterer model.EasyJet seems like very good situation and more expertise forget predict have great opportunities for the low speak to strategy. Resultingly the saturated commercialise and lack of different choice in the British, competition is likely aggravate ineluctability followed by acquisition and coalition, an early sign of which is EasyJets purchase of British airway subsidiary GO. In UK airway market, gave very less development opportunities, therefore concentre will be on the former(a) Continental market. Next step for fightd in this direction is a sassy base going Dutch, Berlin, with public lifes from 11 European cities, and as well on Eastern Europe. Price strategy was in any case the concentrate on focus, its magnification their roadway network. At last, promotion also needs to convince peo ple that it is caoutchouc to fly and constitute EasyJet as Euro largest low f ar flight path.3.1 SWOT analytic thinking3.1.1 StrengthsEasyJet was used the bright orange as Pantone 021C, used by no other airline at the time or since. It have a successful financi tout ensembley which they cut out all meals and snacks on displace tour, mickle reduced the cost of operation. Have more flexible presidency and being seen as an innovative. The airline opened a telephone booking centre is a strong e-business on 1995. EasyJet is also was a mathematical function of the consortium and have awarded by UK air handicraft control brass National Air Traffic Services (NATS).The brand name EasyJet has all the qualities required for long term memory storage and will non be delicate to forget. The airline flies to main destination airports throughout Europe making it very attractive to business travellers. It gains efficiencies compared to traditional carries with speedy turnaround times, an d progressive landing charge agreements with airports, maximizing asset utilization. individual(a) model of aircraft reduced training, maintenance and supervisory costs. At last, EasyJet has been wisely investing in strong brand build measured like publicise and television shows ensured high brand recall.3.1.2 WeaknessesBelow have some weaknesses for EasyJet organisation. It move sustenance of cost leadership can be difficult in a dynamic market. The two drivers of growth, the focus on price and the focus on convenience seem to be reached their natural limits and differentiation from there could become difficult. The airline does non own the EasyJet brand, its owned by Sir Stelios and as a result, does not have control on its performance of other products and services used the same name. It also loss of usage in future could adversely affect its own market performance. On the other hand, the business model can oer time become fogged under competitive pressure and consolidation of the Low Cost Carries (LCC) industry. The airline must be continuously innovative to suffer its current proceeds in e-tailing. Increased fleet capacity could be difficult to lead during disposition periods and in the face of growing competition in a matured market.3.1.3 OpportunitiesRecent expansion of the EU has resulted in open of bracing markets for the LCCs. Their low fares will increase movement of job seekers across boarders and also promote the tourism industry, lead to economic growth. Consolidation could help EasyJet to a certain stratum offset the pressure on its costs and fares. Otherwise, steep and horizontal expansion could be an important option for EasyJet for growth in mature markets and offset any future threat of change magnitude in service provider costs. Withdrawal of traditional airlines from less traffic-intense routes could be an chance for expanded. EasyJet does not seem to have any flights to Scandinavian capitals like capital of Sweden and Helsi ki where immigrant flow was on the rise.3.1.4 ThreatsThe threats of EasyJet had some factors. Terrorism and catastrophic loss can result in lesser air travel and loss of infrastructural support, war threats and outbreak of epidemics or pandemics could increase apprehensions about air travel. Technology forwarding in the conduct of business meetings like video conferencing can be detrimental to short distance flights and impending increased in environmental taxes could increase costs. In addition, circumscribed or no slot availability could be hurdle in future expansion plans and due to its limited fuel hedging policy, EasyJet is more vulnerable to fuel price fluctuations increased by variability in its costs. Currency fluctuations is also the factor of threats, it will affect especially the US dollar denominated costs like aircraft purchase, aircraft finance costs, maintenance reserve payments, fuel purchase etc.. Excess capacity and cost cutting tactics by competitors can affec t passenger traffic on popular routes. Imitation of some main no-frills features by traditional airlines on same routes can confuse and blur the typical image of any LCC. Additional, traditional players can partly switch over or start their own baby low cost airline. Last, dependency on third party service providers could cause problems when any of these contracts are not renewed or negotiation of suitable replacement does not proceeds place or if higher rates are charged.3.2 pestilence analysisThe following factors are likely to have an influence on the EasyJet.3.2.1 Political FactorsIn 1990 the European deregulation of commercial aviation coincided with the expansion of the low cost airline industry. The LCC in the industry were able to take advantage of the relaxed laws and expand their operations. On the other hand, threat of war in the East Euro and EU east enlargement may provide introduction to viable the new markets were also the political factors of EasyJet.3.2.2 Econo mical FactorsMercer Management Consulting (2002) inform that the low cost airline market conforms to the criteria of three components. Firstly, it provides a saucer-eyed product consisting of no seat reservation, free seating, and adequate in flight service. They are a genuine no frills airline with a impartial product offered to the market. Webster (2004) noted EasyJets ability to maintain a high degree of customer focus through a new, user friendly website with an improve booking process.Figure Source Impact of Low Cost Airline Mercer Management Consultancy 2002Secondly, it is apparent that the low cost airline market is characterised by mergers and acquisitions the expansion of existing low cost airlines and finally, market exits as a result of bankruptcy e.g. Debonair.Furthermore, the low cost carriers operate short haul, point to point traffic with short frequencies, pursue aggressive marketing campaigns and muddle with secondary airports. EasyJet, however, has different iated in this respect by dealing with study hub airports e.g. Gatwick.Finally, the industry operates a low cost ethos, which is maintained by lean sales, high productivity of resources, low maintenance costs and low wages.3.3.3 genial FactorsThe low cost carriers position their product to leisure travellers and non business travellers, however EasyJet has differentiated by targeting the business and leisure segments. This behavioural segmentation creates a more dynamic edge in comparison to their competitors who solely focus on leisure travel. Thus, EasyJet must ensure that its strategy is tailored to a wider market.Walton (2005) confirmed that EasyJet was presented as a European low cost airline with a current reading of 26 million passengers in 14 key countries. It has 190 routes to 58 airports and 163 million people live within one hour of EasyJets airports.Figure Low Cost Airlines Gaining Momentum in Europe Schneiderbauer, D. Fainsilber, O. (2000)3.2.4 Technological FactorsL ow cost carriers have the ability to maintain a high degree of customer focus through easy websites with improved booking processes. These websites have the capability of charging bookings with greater ease and utilising an easy to use fare finder to obtain the cheapest fares. Selling tickets via the technological strong point of websites and hence by having no travel agents, they avoid paying substance commissions.