Easyjet Strategic Evalutaion

EasyJet is a low cost airline which founded by Stelios Haji- loannou. It was set up in 1994. In the mid 1990s haji-loannou was renovated by using the internet and online business operation of their company. In August 1999, the easyjet website accounted as online sale for 38% over 135,000 seats. This rate also contributed 30% of ticket sale by 2000. At first, the site had taken more than 800000 booking after a shaky start of 2 sales in the first week and one thousand within the first month. In March 2000, easyjet increase it online discount rate to £2.50 for the single trip – a higher level of permanent discount than any other air line. In September 2000, 85% total sales of easyjet are internet sale. As well as in 2003 easyjet can sole 90% of ticket sale via online. In 1994, easyjet decided on single sales channel in order to survive their business process. At that time, easyjet sole their ticket only via direct selling channel.

According to business environment changes haji-loannou decided to change internet for use in their business when first trial site was launch, easyjest decided to survey on popular rate of their booking phone line was having a web- specific phone number advertised on the site. According to this survey easyjet found that a steady rise in the number of calls occurred every week. This early success can force to company for using more internet technology in future.

On this event haji-loannou said that “We either had to start selling over the internet or build a new call center. So our transactional site became a £10 million decision.” According to this success of easyjet, it could be put down slowly to the founder’s adaptability and vision. Due to this predefined well structured condition, there are no potential channel conflicts with intermediaries of air line such as travel agents. The Internet is important to easyjet to reduce associated running cost and operational cost. For a company profit from each and every customer is important for business success. For easyjet each passenger generates a profit of only £1.50. Savings to easyjet made through customer booking online unable it to offer at least £1 of to passenger who book online. According to this system online buyers also benefit from paying the price of local call. Therefore responsible person of easyjet said that “the saving on the Internet might seem small compared to not serving a meal on a plane, which saves between £5 and £10, but when you think how much it would cost to build a new call centre, pay every easyjet reservation agent 80 pence for each seat sold – not to mention all the middlemen- you’re talking much more than the £1 off we give online buyers”.

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Easyjet

For promotion aspect of Easyjet Company, management of Easyjet used online promotion technique as a main promotion trend of company. The internet marketing guru said that put the company URL everywhere. Easyjet frequently changes their promotion mix such as internet only promotion, newspaper marketing for example The Time in February 1999. The air promotions are basically design to get rid of empty seat. Therefore flight promotions are interned to avoid attracting people who would fly with easy. On the other hand Easyjet also use the website as an aggressive marketing tool of the company. Easyjet also call itself the web favorite airline. At the same time Easyjet also interned to expend their business with online promotion and competitive marketing techniques in future management of easy jet also need to consider for future changes business environment and how to deal with these business environment changes. For future growth of easyjet, it should use electronic marketing strategies and at the time it should follow legal and ethical issue of their business environment.

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Easyjet

3. Situation Analysis

Before beginning the specific project, Organization needs to make up situation analysis for organization’s current positions. Generally SWOT and PEST is popular situational analysis model. Environment and situation are important and can impact on operation of organization.

3.1-SWOT

SWOT analysis of strengths, weaknesses, opportunities, and threats involved in a project or business venture that is used to evaluate the structure plan is a way. SWOT analysis, product, location, industry or who can perform. It specifies the business venture or project's goals and objectives to achieve favorable against the internal and external factors, including the identification. For Easyjet SWOT model can be used to scan the environmental conditions of business configuration. Additionally, SWOT can analyze about current and future situations of Easyjet.

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Easyjet

Strength

Strengths so that it can work more effectively than its competitors are its function of business. For example, the strength of the expert knowledge can be. It will see its own point of view of the customer and the customer must be considered on their merits. It must be a real and honest.

The strengths of Easy Jet are:

 EasyJest is the low-cost airline.

 The cost of tickets is cheaper than other airlines, and cost-saving technology

 business process works for cost reduction

Weaknesses

Weakness is a symptom represented by a number of different conditions including lack of financial resources, in efficient marketing. For weakness diagnostic process, there are two types of weaknesses such as true weakness and perceived weakness. True weakness describes a condition of real situation. Perceived weakness describes a condition which cannot be measure in real situation. The main weaknesses are

 Limited air port departures of specific trips and routes

 In adequate service for booking air tickets of easyjet

 Restricted pricing policy among different branches

 Limited scope of operations of easyjet

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Easyjet

Opportunities

Opportunities are elements that the project could exploit to its advantaged. Opportunities can explore possibilities for new efforts or solution to problem. A new opportunity might open wider avenues; while a new threat could close a path that once existed an opportunity