easyJet aims to deliver a seamless and digitally enabled customer journey at every stage and is continuously working to enhance the customer experience. EasyJet also drew down the entirety of its existing revolving credit facilityraising $500 million in cash. What happens to EasyJet, which had been one of the strongest players in the airline industry before COVID-19, could presage the entire sectors fate: If EasyJet cant come back strong, what airline can? Consumers are optimistic and the travel and tourism industry are now booming again. But with new, more infectious variants of COVID-19 spreading rapidly in Europe, in October renewed lockdowns were imposed across many parts of the U.K. and from Helsinki to Tel Aviv. EasyJet may be especially good at outbound logistics lined to its marketing and sales operations and supported by its technology development. This has the highest risk, but While it is often lumped into the same European budget airline category as Dublin-based Ryanair and upstart Hungarian carrier Wizz Air, there are some key differences between EasyJet and those other airlines. EasyJet through its use of an overall cost leadership strategy can use internet-based technologies to reduce value chain costs in a variety of ways: On-line bidding and order processing to eliminate the need for sales calls and decrease sales force expense. LEGAL The European deregulation of the commercial aviation provided both major strategic threats and opportunities, the national mainstream airlines faced severe price competition from discount carriers. Each stands elevated on hydraulically controlled legs, with doors reached by a short metal staircase. The company has announced plans to reduce its 15,000-person workforce by 30%. This has lead to EasyJet customers enjoying Ticketless travel this reduces the cost of issuing, distribution, processing and reconciling tickets. As the holidays business grows in scale, easyJet plans to make targeted investments to strengthen the business. All Rights Reserved. Next we will use Porters Five Forces analysis of the industry and the increasing threat of other low-cost carriers (Ryanair, bmi baby etc) and also threats from the flag carriers (British Airways, Air France, KLM, Lufthansa etc). WebSome compliance risks are specific to an industry or organizationfor example, worker safety regulations for manufacturers or rules governing the behavior of sales representatives in the pharmaceutical industry. Budget airlines that fly point-to-point, such as EasyJet, can easily stimulate their demand by running price promotions and advertising and then shifting flight schedules to cover those new bookings. Web1) Economic Risks. As hard as it has tried to inoculate itself against the pressures of the pandemic and to convince passengers it will be safe to fly, its fate remains up in the air, subject to unexpected and unwelcome turbulence. If you need assistance with writing your essay, our professional essay writing service is here to help! Still, it wasnt spared from the industrys general carnage. Where normally there would be the roar of engines and the trundling rumble of buses and baggage carts, the whistling wind is often the only sound. The attackers stole more than 9 million customers e-mail addresses and travel details and also accessed credit and debit card details of more than 2,200 customers. data than referenced in the text. But it was not the same as canceling its contract, and unsurprisingly, Haji-Ioannou was not satisfied. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Overall the analysis will highlight the inherent threats and weaknesses suffered throughout the industry, and also the importance of innovation to maintain low cost advantage, alliances and size to success. Balance your retirement plan with your other financial goals. EasyJet in its pursuing of low-price strategies may be prepared to accept the reduced margin either because it can sell more fares than competitors. Webcomputing risks Let us look at five different types of risks and how they apply or vary by cloud deployment models. The sales process is efficient, as EasyJet sells directly to customers, instead of using external sales teams. The threemost prominent firms that advise shareholders onhow to cast ballotsin proxy votesISS, Glass Lewis, and Pircall recommended against backing his proposals. It is difficult to co-ordinate the individual employee because in principle they operate independently of each other. e-commerce) and support activities such as fir infrastructure (e.g. Our mission to make business better is fueled by readers like you. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Commercial airlines net profit in Europe 2013-2022, Commercial airlines change in passenger traffic in Europe 2013-2022, Number of passengers uplifted by United Kingdom airlines 2013-2021, British Airways - worldwide revenue 2010-2021, Leading airlines in Europe based on passenger numbers 2021, Net profit of commercial airlines in Europe from 2013 to 2022 (in billion U.S. dollars), Commercial airlines EBIT in Europe from 2013-2022, Earnings before interest and taxes (EBIT) margin of commercial airlines in Europe from 2013 to 2022, Year-on-year passenger traffic change of commercial airlines in Europe from 2013 to 2022*, Turnover of the air transport industry in the United Kingdom 2008-2018, Annual turnover of the air transport industry in the United Kingdom (UK) from 2008 to 2018 (in million euros), Total number of passengers uplifted by airlines based in the United Kingdom (UK) from 2013 to 2021 (in millions), Worldwide employment by registered airlines in the United Kingdom 2002-2020, Number of people employed worldwide by UK-based airlines between 2002 and 2020, Volume of turbine fuel consumed in aviation in the United Kingdom (UK) 2000-2020, Amount of aviation turbine fuel consumed annually in the operation of aircraft in the United Kingdom (UK) between 2000 and 2020 (in million metric tons), Annual revenue of easyJet plc from 2009 to 2021 (in million GBP), EasyJet plc: annual revenue by region 2018-2021, Annual revenue of easyJet plc from 2018 to 2021, by region (in million GBP), Annual operating expenses of easyJet plc from 2009 to 2021 (in million GBP)*, Annual earnings before interest, taxes, depreciation, amortization and rentals (EBITDAR) of easyJet plc from 2009 to 2021 (in million GBP), Annual operating profit of easyJet plc from 2009 to 2021 (in million GBP), Annual net profit of easyJet plc from 2009 to 2021 (in million GBP), Number of passengers carried by easyJet 2009-2021, Number of passengers traveling with easyJet from 2009 to 2021 (in millions), Passengers uplifted by EasyJet in UK 2008-2020, Number of passengers uplifted by EasyJet Airline Company Ltd in the UK from 2008 to 2020 (in millions)*, Number of seats flown on easyJet flights between 2011 and 2021 (in millions), Easyjet passenger transport volume 2013-2021, Passenger transport volume of Easyjet from 2013 to 2021 (in million revenue passenger-kilometers), EasyJet's passenger load factor 2009-2021, Passenger load factor of EasyJet between 2009 and 2021, Distance flown by EasyJet's passenger aircraft worldwide 2008-2020, EasyJet Airline Company Ltd's passenger aircraft kilometers flown worldwide from 2008 to 2020 (in million kilometers), Leading airlines in Europe in 2021, based on passenger traffic (in millions), Leading European airlines based on revenue 2021, Leading airline groups in Europe in 2021, based on revenue (in billion U.S. dollars)*, Liquidity balances of leading European airline groups 2019, European airlines with best liquidity as a share of 2019 revenue*, Liquidity equivalent days of revenue of the leading European airline groups 2020, Liquidity equivalent days of revenue of the leading European airline groups in 2020*, Number of passengers uplifted by United Kingdom airlines 2021, Leading airlines in the United Kingdom in 2021, by number of passengers uplifted (in millions), British Airways Plc's worldwide revenue from FY 2010 to FY 2021 (in million GBP), British Airways and subsidiaries: number of passengers carried 2011-2021, Number of passengers traveling with British Airways and its subsidiaries from 2011 to 2021 (in 1,000), Annual revenue of Ryanair from 2010 to 2022 (in million euros), Number of passengers carried by Ryanair 2011-2022, Number of passengers traveling with Ryanair from 2011 to 2022 (in millions). Now, at the cusp of a summer season that normally would be the source of the majority of EasyJets profits, the airline and its CEO face what could be a make-or-break season. EasyJet is known for its low-cost competitive pricing. easyJets strategy will seek to continue to lead the market in sustainability, working with our partners to achieve our Net Zero Roadmap and the decarbonisation of the aviation industry. This results in high levels of asset utilisation and reduced unit costs. EasyJet is also Europes leading low-cost airline having completed a merger deal with Go to create Europes number one low-cost airline. Another major industry wide threat is the volatility in price of fuel Oil price record high of $53 a barrel. this was the headline in the business pages of all the newspapers last November. It has been a value-for-money proposition rather than trying to be the cheapest in the market.. With Ryanair maintaining high margins despite reducing yields through strict cost management. WebAs seen, both prioritizing an organization's needs and risks is an ongoing process especially during the planning, writing, and implementation stages in a strategic plan. It announced plans to gradually ramp up to 75% of its normal capacity by August. But nothing has been normal for EasyJet since March 23, 2020. EasyJet manages its sales process extremely efficiently, its sells its tickets directly. The web-based questionnaire was distributed to Egyptian healthcare workers from the 20th of April 2020 to the 20th of May 2020. WebThe following operating risks are associated with pursuing sustainability initiatives as part of a marketing plan: Loss in profitability Loss of focus Just as sustainability would seem to be a rallying cry for consumers, some companies have jumped on sustainability as a Remote working and hot-desking have been characteristics of easyJet since the beginning. TECHNICAL Changes in retailing methods as such ticket sales via the Internet is now a common place in air travel, passengers receive an email containing their travel details and booking reference when they book online. The pandemic, of course, wiped out business and leisure travel alike. The minute consumers start to make a choice based on this, and I think they will, an emphasis on sustainability will pay off, says BCG consultant Molenaar, and EasyJet has been out front in preparing for this.. This will require a mindset where innovation (in cost reduction) is regarded as essential to survival. If COVID doesnt ease more quickly, and leisure travel doesnt rebound as hoped,EasyJetshole will only get deeper, and its plans to grow could be spiked indefinitely. Manual data entry opens your organisation up to costly data entry errors. It takes up to last extend in the time. This will identify its strength, weaknesses, opportunities and threats. It is about a man who faces challenge after challenge but he keeps his mood and rises up again, Lundgren told the newspaper. The fuel-efficient jets could help EasyJet reduce its carbon footprint at a time when consumers and governments seemed increasingly likely to hold airlines accountable for their climate impact. Research expert covering mobility and logistics. In June, the airline found a deft way to simultaneously relieve the pressure from its cash burn and Haji-Ioannou: It raised more than$631 millionto help it weather the pandemic by issuing new shares equivalent to 15% of the companys outstanding share capital. on its competitive advantages - an unparalleled network and market positions, efficient low cost model, well-known brand and strong balance sheet - positioning easyJet to deliver sustainable and disciplined growth and returns for shareholders. He added Barton and Lundgren to the list of scoundrels he wanted to oust.Haji-Ioannou kept upping the stakes. He said he had discovered a secret meeting in Switzerland, arranged by Airbus, between top EasyJet executives and a lawyer who, according to documents revealed in the Panama Papers leak, may have helped clients evade international sanctions through offshore shell companies. At the end of March 2020, EasyJet grounded its entire fleet. Meanwhile, the U.K. has announced international travelwill resume as of May 17, but willoperate according to a traffic light system, with arrivals from red-, yellow-, or green-designated countries subject to different requirements. EasyJet also operates a flat management structure, which may lack a formal discipline that is needed as the organisation grows. The Essay Writing ExpertsUS Essay Experts. This will involve retention of best salespeople supported by HR management, engineering support in terms of maintenance of the web page supported by technology development to ensure that web site has the latest prices and route and flight information. We need to focus on the things we can control. easyJet seek to strengthen their position in key markets as the competitive landscape evolves. EasyJet also has a strong cash flow position primarily from its policy to retain profits and reinvest it back to the business. Out on the tarmac, a short distance from the simulators, almost a dozen real EasyJet A320s sit idle. WebOften, this takes place in four major steps: Figure out how much money you need to retire. Upgauging the fleet enables easyJet to improve competitiveness on costs. Lower costs are the only competitive advantage in the short-haul economy sector as air travel is effectively a commodity product. Offers may be subject to change without notice. A prime example of this was the subsequent takeover of Go by EasyJet. The UKs second-largest union has slammed easyJet flight cancellations in a scathing email obtained by Euronews. ECONOMIC the travel industry is vary recession prawn and also very sensitive to changes in oil prices. The company has also grown in terms of its acquisitions of GO and also increase in purchases of its own aircrafts. Strategic risk is a category of risk; alongside operational, financial, regulatory and other business risks, it forms part of the umbrella of risks your organization faces. Advantages of Choosing In-House. The airline resumed flying on June 15, 2020, with limited routes within the U.K. and to France. Table 1 shows that EasyJets sales has increase year on year since 1998, with profit and gross margins also experiencing a positive trends. Potential threats of economic recession, since air travel is effectively a commodity product, it is recession prawn. But what are the internal weaknesses suffered by EasyJet? This text provides general information. This time, he succeeded in scheduling a showdown vote for May 22, 2020. In this way, it has positioned itself as a more direct competitor to Europes traditional airlines.Lundgren says he wants EasyJet to be the No. Lundgren says he likes the site because it keeps airlines honest: When customers can see that their inbound aircraft hasnt even taken off from its previous destination yet, theres no point in feeding them the bad news with an eyedropper, as airlines traditionally had done, gradually announcing slightly longer delays. We mentioned the seven most common risk events above, but other project risks could include contractor failure, unexpected life events, data transfer issues, shifting priorities, legal risk, market risk, and project deferral. The EasyJet brand is established in the European market, but brand awareness is required outside the continent. Increasing automation driving self-service capabilities for customers. The way the report has classified the risk is whether the risk is a generic risk that will affect the whole industry of whether the risk is specific to the company. Our revenues have been benefitting from data projects in late yield initiatives and differential seat pricing. POLITICAL Following the European deregulation of commercial aviation, a fleet of low cost carriers are reshaping the local airline landscape. In essence, Lundgren told the BBC, thismeansonly the rich can go on holidays: The expense of these tests would be way over and above what the cost is of an average EasyJet fare, he said. However the sustainability of competitive advantages may be problematic: as rivals copy successful strategies, EasyJet will loose its initial advantages. EasyJets new holiday division launched in December 2019, just months before the pandemic took hold. Protecting and building brand awareness and consideration. Strategic risk represents one type of risk that businesses face, along with risks like operational, financial, and regulatory, to name a few. But flying to those primary airports in Western Europe is more expensive. It renegotiated contracts with ground handling firms at several airports helping to lower costs. These risks may include: Shifts in consumer demand and preferences. Of popular holiday destinations, only Portugal and Gibraltar were put on the initial green list, with no requirement to self-isolate upon return. So when the industry was slammed by COVID-19, government was responsive to pleas for help. The Matrix outlines four possible avenues for growth, which vary in risk: Market Penetration. This analysis will highlight the fundamental changes that the airline industry is undergoing, especially; in defence to the turbulent environment it faces from exogenous forces (terrorism, oil prices, SARS etc) and endogenous forces. )Compared to some of its low-cost rivals, EasyJet also owned more of its planes outright. easyJet is delivering its strategy through four strategic priorities, which define the areas of focus to achieve their ambition. And, finally threats of any takeover bids from national airlines. The fourth force is the bargaining power of buyers. Feeling powerless is one of the worst feelings, not just in business.. Once a saver, always a saver: Warren Buffett says generational wealth isnt what it used to be in his annual letter Salesforce is paying Matthew McConaughey reported $10 million a year for creative help despite laying off 8,000 CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. 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