Friday, August 23, 2019

EasyJet plc (airline strategy report) Assignment - 1

EasyJet plc (airline strategy report) - Assignment Example Its technology is at a strong point though there is need for improvement with constant growth of new technology (Simister 2011). Threat of entry is very low compared to heavy budget connected to airline demands. Globalization is providing the company with new opportunities for new markets allowing the company expands through different nations. EasyJet has a great potential of growth within the airline industry because of its ability to operate in small airports where other airlines in these airports is very low (Bamber et al. 2009). The diagram above indicates that EasyJet is in a favorable position giving it the ability to take up a growth strategy which is aggressive. It is evident that the airline is operating in a stable and attractive industry giving it competitive advantages coupled with significant financial strength. From the above analysis, it is quite evident that EasyJet strategy is adequate in relation to the airline industry market demand. However, there are several issues that the company needs to address to strengthen its strategies. The following recommendations are necessary; There is need for EasyJet to expand its geographical market to other market apart from its concentration in Europe and countries near Europe. By so doing the company will be able to capture low cost airline demand especially in developing countries. In order to increase its competition in the low cost airlines, it is important for EasyJet to improve its facilities of operating the flights. Improving its facilities will provide the airline with opportunities to operate better in markets. Even in establishment of low cost flights, EasyJet need to create different boarding classes to fit a wide segment of its target market. For instance, businessmen prefer business class while travelling which cannot be the same case for other individuals. The company can engage its customer through offering group discounts for customer travelling as group. For

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