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Table of Contents

Task-1 Research Proposal 2

1.1 Title. 2

1.2 Introduction. 2

1.3 Background. 3

1.4 Aims. 4

1.5 Design/methodology. 4

1.6 Factors contributing to the selection of research project 6

1.7 Review of the key references. 6

1.8 Plan for implementation. 7

1.9 Conclusion. 9

Task-2 Research report 9

2.1 Efficient use of resources to research question or hypothesis. 10

2.2 Evidence of taking research as per the research plan. 11

2.3 Recording and collecting data relevant to research. 11

2.3.1 Financial performance data. 11

2.3.2 Business performance data. 12

2.4 Interpretation and analysis. 17

2.5 Evaluation of research. 19

2.6 Recommendations and justification for further consideration. 19

References. 21

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Task-1 Research Proposal

1.1 Title

To investigate into financial and business performance of Easyjet and to provide recommendations for improvement of financial & business performance of the organization

1.2 Introduction

The topic selected in present context is analysis of business and financial performance of Easyjet. Present research project would explore the business & financial performance of company in a view to improve the same. A critical analysis of the performance would be done with the help of secondary data pertaining to the historic performance of Easyjet. Selection of present topic would help in order to apply the research skills for the selected organization in order to explore the vital information (Bamber, 2009). Present topic would help in order to implement theoretical knowledge and understand different business aspects of the selected organization. Research proposal would contain the brief regarding topic and basic planning process for conducting present research.

Organization selected is Easyjet which is low cost airline operator in European airline industry. Easyjet has been selected as it is one of the highly advertised organization which catches consumer attraction through promotion made by outdoor media, TV, newspaper and online advertisement as well. History of Easyjet is not much old as company was established in year 1995 and till the time Easyjet has maintained steady growth. Easyjet has evolved as one of the biggest low cost player in European airline industry.

1.3 Background

Easyjet is in market since last 19 years and performance of the company has remained steadily growing during this tenor. It is quite interesting to understand the financial and business performance of Easyjet and to compare to same with the competitors present in the same industry with similar positioning as of Easyjet. Ryanair is one of the key competitors for Easyjet dealing in the low cost segment and evolving as the major airline players in Europe. There is high degree of similarity between Easyjet and Ryanair as both are operating in low cost segment for airline industry and both are targeting Europe as their major market segment. Financial performance analysis of an organization would help in order to understand the performance of organization in terms of key ratios based on the standard set for the comparison. Evaluation of these ratios would provide insight on the company’s performance over historical time period so as to determine whether there is consistency in the financial performance of the organization or not. In addition to this financial performance analysis would help to compare figures of Easyjet with its competitor named Ryanair (Hambrick, 1983). In addition to this business performance of Easyjet would be evaluated in the present context through business environment faced by Easyjet and business strategy developed. Business performance of the company would help in understanding whether business strategy of the organization is good enough to survive for longer time period. Also another point of analysis for the business performance for Easyjet would be to understand whether business strategy of the company is able to help in achieving competitive advantage. For business environment in the present context SWOT analysis and PESTEL analysis would be done while business strategy development for Easyjet would require evaluation of Porter’s generic strategy for Easyjet.

1.4 Aims

Aims of present research can be given as under:

  • To assess the financial and business performance of Easyjet over last three year period
  • To understand the future competitiveness for Easyjet with current business performance
  • To examine the market competitiveness of Easyjet as compared to its nearest rival named Ryanair
  • To recommend possible ways so as to enhance financial and business performance of Easyjet

1.5 Design/methodology

The research methodology adopted for the present research would be exploratory in nature wherein based on the information collected business and financial performance of Easyjet would be explored. Rationale behind using exploratory research would be to explore the business & financial domain of Easyjet as there is not much information available on the business domain of Easyjet. Further exploratory research would be helpful in order to explore the possible recommendations which would help Easyjet to excel in their financial and business domain. Analysis would be done with the collected data so as to understand the strength & weakness in the financial and business domain for Easyjet (Hill, 1988). Present research methodology would be purely based on the secondary research method in order to collect the data pertaining to present context. There would not be any primary research conducted in order to collect the required dataset pertaining to Easyjet. Secondary data required for the present research would be collected by making use of existing resources for the current research such as journals, research articles, literature existing, financial reports of Easyjet and other sources containing rich information pertaining to Easyjet.

The data collected in present research would be both qualitative as well as quantitative in nature wherein business strategy & business performance related data would be qualitative in nature. In the business performance or business strategy major focus would to explore the type of market competitiveness maintained by Easyjet against its competitors so as to lure the consumers. Financial data collected for the present research would be purely quantitative in nature wherein major focus of the research would be to examine the financial trend in the data for the last 3 years. This data would provide the financial records for Easyjet in order to understand the progress which company has made over these years. Rationale for collecting both qualitative as well as quantitative data would be the requirement of particular dataset for the current research.

Data analysis would be done with the help of statistical methods as well as content analysis methods. Statistical methods would be helpful for analyzing quantitative data wherein with the help of ratios financial performance of Easyjet would be explored and recommendations would be provided in order to improve financial performance of Easyjet in coming time. Content analysis method would be used in order to analyze the qualitative data pertaining to the business domain of Easyjet. Data analysis would be done in order to present the findings of present research so as to provide recommendations for improvement of financial & business performance of Easyjet (Kotha & Orne, 1989).

The major limitation of the present methodology used in the current research is usage of the secondary data research only as it does not involve primary data collection process. By making use of the primary data, present research should have attained more depth as multiple information sources should have made the research accurate. Further using both primary as well as secondary data would provide the historical as well as current information pertaining to present research. Including primary data would help to know current strategy deployed by Easyjet as in the business domain strategies employed by businesses would keep on changing due to dynamic nature of business.

1.6 Factors contributing to the selection of research project

The present project has been selected so as to study the market competitiveness and financial growth trend which has been maintained by Easyjet. It is quite surprising to observe that there is stiff competition in the airline industry and increasing expenses are not allowing the big industry players to maintain healthy profitability and despite of that Easyjet has remained successful in maintaining continuous growth pattern. The current project would allow us to analyze the business and financial factors for Easyjet so that depending upon the model followed by company similar benchmarking process can be adopted for other industry players as well (Kotha & Vadlamani, 1995). Further current research project would help in order to analyze the present situation of Easyjet and depending on the current situation further recommendations can be given so as to enhance the competitive position of Easyjet in order to compete with its rivals in low cost airline segment.

1.7 Review of the key references

Present section would provide the key references which can be referred for the current research so as to fulfill the objectives for financial and business performance analysis of Easyjet. Bamber (2009) provides the methods in order to improve upon the performance for airline industry players by engaging employees of the organization in the business activities. The present source offers the competitive advantage which is developed by Easyjet by operating in the low cost segment. Further, developing competitive advantage in the airline industry by operational excellence would be the lesson derived from this reference. Benavent (20009) provides the strategies which can be used by the airline industry operators in order to maintain the competitive advantage and beat their rivals in the low cost industry. Europeaid (n.d.) offers information pertaining to the SWOT analysis of Easyjet in order to understand the threats and opportunities faced by Easyjet in the airline industry in Europe.

Johnson et al (2011) offers information pertaining to the strategies which can be implemented in the airline industry in order to maintain high business competitiveness. Business strategies used in the airline industry would be explored so as to develop the competitiveness against the business rivals for Easyjet. Porter (1980) offers a key reference for the development of competitive strategy for analysis of industry and competitors of an organization. This source would be helpful in order to analyze the generic strategies and market competitiveness factors for Easyjet so that business analysis can be done for the company and suitable recommendations can be provided for improvement in the business strategy of Easyjet. All these sources would be vital in order to study the financial and business parameters for Easyjet and develop suitable recommendations in order to enhance the competitiveness factors for Easyjet.

1.8 Plan for implementation             

The current implementation plan for the research would include the usage of different resources required for the research, development of time plan for conducting present research and chapter outline for the research so as to accomplish present research. Resources required for the current research would mainly consist of the secondary data collection resources which would be used in order to gather business & financial data pertaining to Easyjet. Secondary data sources would include research journals, books, articles, website, financial reports and other sources containing information regarding Easyjet. In addition to this, statistical data analysis tools such as MS excel would be used so as to develop financial ratios and trends in the financial performance of the company (Miller, 1988).

Time plan for the current research would be three months and a shorter time period is required for the current research due to the reason that present research does not involve any primary data collection process and entire data would be collected through secondary methods only. This would limit the time requirement for the current research and Gantt chart for the present research can be given as under:

Project task Time taken Start data End date
Research planning 10 1-Aug-14 10-Aug-14
Data collection 20 11-Aug-14 30-Aug-14
Data analysis 15 31-Aug-14 14-Sep-14
Final business research report 15 15-Sep-14 29-Sep-14

Table 1: Showing the time plan for the current research of Easyjet

Figure 1: Showing the Gantt chart for research of Easyjet

Gantt chart for the present research has been shown as per figure 1. The entire research process is expected to be completed within time duration of 3 months being the secondary data research. There would be mainly four phases for the present research and these would be research planning process, data collection, data analysis and final business research report. Time required for each phase has been given as per table above wherein contingency plans would be implemented in case the above timeline would not be met for the current research project.

Chapter outline for the present research would be given as under:

  • Chapter-1 Research planning: Research planning process would contain the brief overview of the research wherein major research elements would be provided for the present research. This chapter would contain the details of research objectives which would be fulfilled through current research and planning for the entire research so as to attain the research objectives.
  • Chapter-2 Data collection: Data collection in the present report would be done through secondary methods and this chapter would make use of the several existing sources in order to gather data pertaining to business & financial domain.
  • Chapter-3 Data analysis: Data analysis chapter would contain the details for analysis done for the present research through different tools such as statistical and content analysis so as to present the analysis of data collected in the research.
  • Chapter-4 Business research report: This chapter would contain the findings of report in order to attain the objectives framed within the research. Further recommendations would be provided in order to improve upon the business & financial parameters of Easyjet.

1.9 Conclusion

Easyjet is operating in low cost segment for the airline industry wherein company has been established in year 1995 and till the time there is good growth so as to emerge as one of the key airline industry player in Europe. The financial and business strategy implemented by Easyjet is one of the key variables responsible for this growth and it is important to further work on the business and financial parameter so that this growth may continue over the future period of time. The current research planned in context of Easyjet would attain the objective for analysis of the business and financial parameters of the company in order to assess current position and market competitiveness. Exploratory research method would be used for conducting the present research by making use of the secondary research methods. Entire research would be completed within a period of 3 months time with four major phases which are research planning, data collection, data analysis and final business research report.

Task-2 Research report

Present section of the report would present findings so as to fulfill research objectives framed in task-1. The findings of the present research would be developed with the help of suitable analysis tools so as to present findings as per the requirement of audience. In addition to this present section would provide the recommendations for improvement in the business and financial aspects of Easyjet.

2.1 Efficient use of resources to research question or hypothesis

Research questions pertaining to current research would include below mentioned:

RQ1: What is the current financial and business competitiveness for Easyjet in the airline industry?

RQ2: What is the financial trend for Easyjet since last 3 years and what improvements can be done in the financial position of the company?

RQ3: What is the business competitiveness for Easyjet against the competitors and how Easyjet can improve upon the competitiveness to position itself better in the marketplace?

Based on the research questions for Easyjet several research hypotheses can be developed and these hypotheses would be tested in order to fulfill the research objectives framed in the present research.

H1: Easyjet has the strong financial and business competitiveness at present

H01: Financial and business competitiveness for Easyjet is not sustainable

H2:  Financial trends for Easyjet are booming and showing the potential for increase in coming time

H02: There does not seems much strength through financials of Easyjet

H3: Easyjet has high competitive strength as compared to its competitors

H03: Easyjet does not maintain high competitive strength as compared to the other market players in low cost airline industry

The research question and hypothesis would be examined with the help of collection of secondary data so as to test the hypothesis in order to fulfill research objectives in present research context. The secondary data resources used for the present research would be helpful in matching research questions and hypothesis for the present research.

2.2 Evidence of taking research as per the research plan

Present research has been proposed to be carried out with the help of exploratory techniques wherein research context of Easyjet would be explored for the financial and business performance. It is aimed to explore the business & financial domain of Easyjet through secondary data research and these resources would be used in the present context only so that entire research can be accomplished through secondary resources only. Research plan deployed in the present research is such that it makes use of the existing research resources such as the research journals, articles, newspaper and books in order to gain access to the information pertaining to Easyjet and their business performance (Miller & Friesen, 1986).

Data plan has been developed in such a way that entire research can be completed through secondary research methods only and there is no requirement for the collection of primary research data. Financial and business parameters for Easyjet can be assessed easily in order to examine the competitiveness of Easyjet and this would help in assessment of the business domain for company against the other market players prevailing presently in low cost airline segment.

2.3 Recording and collecting data relevant to research

2.3.1 Financial performance data

The data collection process for the current research would look into the financial and business aspects for Easyjet. For evaluating the financial performance of Easyjet three year financial data would be collected so as to check the trends in the financial data of Easyjet.

Particulars 2010-2011 2011-2012 2012-2013
Revenue 3452 3854 4258
Gross profit 1552 1750 1998
Operating income 275 331 497
Net income 225 255 398
Net Margin% 6.52 6.62 9.35
ROA% 5.31 5.82 9.14
ROE% 14.04 14.58 20.89
Financial leverage 2.62 2.39 2.19
Current ratio 1.48 1.05 1.05
Debt/equity 0.67 0.46 0.29

Table 2: Showing the key financial ratios for last three years of Easyjet

As shown in the table 2 above those key financial ratios of Easyjet has been provided which showcase the increasing trend for the revenue and other components of financial importance for the company. Analyzing the three years revenue data for company it can be observed that revenue is increasing every year by healthy number in every year which is mainly due to penetration of higher number of markets in Europe and increasing the customer base of Easyjet by deploying competitive strategies in the airline industry. In similar pattern to the revenue, gross profits and net income of the company is increasing which is mainly due to the reason that company is deploying cost cutting methods and lesser expense are made in order to make promotions (Mintzberg, 1978). Return gained by the company is increasing year on year as evident through return on equity as the same has touched to 20.89% in FY 13. Looking at the last three year financial leverage data, it can be observed that leveraged has reduced continuously in last three years which is mainly due to the reason of reducing interest expenses and employing company owned funds. Reduction of leverage has allowed Easyjet to remain in the strong position in terms of the financial strength and company is able to get access to cheap funds as compared to the market borrowings which are available at high cost. This would enhance the overall profitability of Easyjet. Hence, it can be said that since inception Easyjet is having good performance and the financial performance of the company is improving further so as to compete with the giant industry players in the airline industry.

2.3.2 Business performance data

Present section of the report would provide the data on the business performance of Easyjet wherein strategic aspects of the company would be explored in order to examine the position of business elements. There would be mainly three aspects explored in present data collection process i.e. Porter’s five force analysis for Easyjet, SWOT analysis and Porter’s generic strategies (Mintzberg et al, 1995).

Porter’s five force analysis for Easyjet

Porter’s five force analysis for Easyjet can be given as under:

  • Bargaining power of buyer: Buyers in the airline industry contains high bargaining power as Easyjet is not the only player in low cost airline industry. There exists a stiff competition between various industry players due to which buyers’ posses’ high bargaining power. Further buyers are free to change the airline company due to no switching cost involved for them which would enhance their bargaining power in the airline industry (Murray, 1988).
  • Bargaining power of supplier: Suppliers mainly includes the airline suppliers, oil suppliers and airport authorities. Suppliers in the airline industry contain high bargaining power. There are mainly two airplane suppliers i.e. Airbus & Boeing and Easyjet does not contains sufficient bargaining power in order to affect the pricing for these suppliers. However, Easyjet can exercise some bargaining power in case of multiple numbers of airplane purchases from these suppliers. For oil supply, there are limited numbers of fuel suppliers containing high bargaining power due to which prices are generally high. Airport authorities’ posses’ high bargaining power as airplanes required space for parking and usually high amount is charged from airline companies for this space. Easyjet normally pays low fee as the planes are parked at Gatwick airport instead of Heathrow airport.

Figure 2: Showing the Porter’s five force model

  • Threat of substitution: The threat from the substitute product is low as trains are the main substitute for airplane industry. Trains are considered to travel for short journey with much higher time consumed as compared to the airplanes. In order to save time at longer journey and planes are used. Trains can’t be considered as the perfect substitute of the planes (Nooteboom, 2007). So overall threat of substitute for the planes is quite low.
  • Competitive rivalry: Easyjet is facing stiff competition in the airline industry in Europe and it is considered as the fifth largest airline company operating in Europe. In terms of low cost airline companies Easyjet stood at second place just after Ryanair which is considered as the best low cost airline player in European market. There is intense competition in the industry with each player trying to lower down its cost in order to enhance the overall profitability. It can be said that there is high competition between low cost players dealing in the airline industry in Europe with each player trying to reduce its price for attracting higher number of consumers towards them.
  • Threat of new entrant: Due to very high initial cost it is not easy to enter into the airline industry. Along with this equipment required to start with Airline Company are highly costly due to which high amount of capital is required in order to start Airplane Company (Peppard & Rylander, 2006).

Understand the five forces recommended by Porter in order to examine the overall market competitiveness for any organization it can be said that in present context of Easyjet, market competitiveness for Easyjet is average. Since company does not hold much control over suppliers & buyers but overall in the low cost industry it is considered as the second biggest player which gives it an advantage in the market (Porter, 1985).

SWOT analysis of Easyjet

SWOT analysis is considered as one of the main tool for the organization in order to examine the strength, weakness, opportunities and threat faced by the organization in its internal and external environment. SWOT analysis helps in order to identify the strategic areas of an organization which needs to be developed for reaching towards success. SWOT analysis for Easyjet can be given as under:

Strength Weakness
1. Positioning of Easyjet is one of the key strength element for company as it is positioned as low cost operator in industry

2. Easyjet is successful in maintaining low cost for its operations and has emerged as one of the key brands in low cost airline industry (Porter, 1980).

3. Marketing communication developed by Easyjet through its website and effective advertisement provides edge over other market competitors

4. Easyjey has high market share of approx 60 million giving it a high reputation

5. Easyjet connects most of the locations in Europe with high reliability & consistency

6. Easyjet is capable of maintaining consistent and flexible operations

1.      Limited departure airports reveals one of the key weakness for Easyjet

2.      Easyjet has only internet way of booking which may not be useful for people not using internet

3.      Easyjet has limited services wherein company only caters to the economy class without presence of any business class in their planes

Opportunities Threat
1. Buying behavior for consumers in airline industry is such that they are looking to minimize the transport cost which would help players like Easyjet to enhance their market share

2. Easyjet can expand its operations outside Europe in destinations such as Asia where low cost airlines are expected to perform better (Prahalad & Hamel, 1990)

3. Internet revolution would help Easyjet to add more customers with online booking and minimize cost of booking for the company

4. In recent time Ryanair has experienced downfall in their customer base by 5% while in the same period Easyjet is experiencing increase in their customer base by 13.1% allowing better perspective for the company in coming time

1.      Terrorism is one of the major challenge for airline industry in present time

2.      Environmental threat has been identified in recent time with Icelandic volcanic ash offer high threat

3.      Increasing fuel prices are forcing Easyjet to enhance their prices

4.      Increasing competition with big brands launching their low cost sub brands has forced Easyjet to further reduce their price and profitability has impacted

5.      Union pressure and employee relation activities can have significant impact on the day to day operations of company

Porter’s generic strategies

Easyjet mainly makes use of the cost leadership and differentiation strategy in order to attract their consumers towards the Easyjet brand and establish high market share in the European airline industry. Analysis of Easyjet in terms of the Porter’s generic strategies can be given as under:

  • Cost leadership: Cost leadership is the major strategy which Easyjet uses in order to attract their consumers. Easyjet need to make several shifts in the overall organizational operations in order to deploy cost leadership. Company has implemented low cost no frill strategy so that customers looking for low cost in the airline industry can be targeted. Company tend to lower down their cost by deploying several unique strategies such as their planes would fly more as compared to the other airline operators so as to cover the cost of planes (Robinson & Pearce II, 1988). Similarly, planes of Easyjet would be landed in the out of the way airports so as to minimize on the parking expense for their airplanes. All these strategies adopted by the company would be helpful in order to minimize overall operational cost of the company so that consumers can be attracted basis lower costing offered by the company.
  • Differentiation: Differentiation strategy would be of high importance wherein company would innovate so as to attract consumers based on the unique features offered by them in comparison to their other competitors prevailing in the market. Low cost no frill strategy adopted by Easyjet is an example of the differentiation strategy adopted by the company. Another differentiation which is done by Easyjet was in form of e-tickets as company offers booking through internet only which not only reduces the personnel cost for Easyjet but also make passenger’s life more comfortable.

2.4 Interpretation and analysis

Current research has focused on two aspects for Easyjet and these are financial performance and business performance of the company. Looking into the financial performance of the company it can be said that Easyjet is growing year on year in terms of revenue as well as net margin earned by the company. This highlights that margin as well as market share of company is growing at a rapid pace (Stabell & Fjeldstad, 1998). Financial performance of Easyjet also proves the increasing competitiveness for company as compared to the biggest low cost airline operator i.e. Ryanair. Market share of the Easyjet has increased while Ryanair has incurred reduction in their market share in recent time. Analyzing the revenue data of the company it can be said that the competitive strategies deployed by Easyjet are working and the same is evident through the financials of the company. Growing profitability of the company year on year has highlighted the fact that Easyjet has remained successful in managing their cost lowest across the industry and this low cost model is the major part of their strategy. In addition to this increasing margins of the company are evident and these are as a result of the lower debt availed by the company as interest expenses has been lowered down considerably. Leverage and debt to equity ratio of the company also proves the lower debt for the company thereby adding to the margins of the company. Personnel expense for the company has also lowered down so as to enhance the profitability as company only employs online booking method and there are no employees appointed by Easyjet in order to make bookings.

Analyzing the business performance of the company strategic perspectives can be highlighted for Easyjet wherein three competitive models i.e. Porter’s five force model, SWOT analysis and Porter’s generic strategy model gives evaluation of the strategic aspects of Easyjet. Porter’s five force analysis shows that Easyjet has low competitiveness in industry but comparing from other market competitors the position is quite strong (Treacy & Wirsema, 1993). Since most of the operators in low cost airline segment do not have high bargaining power over their suppliers and buyers due to which their competitiveness reduces and so does the case with Easyjet also. But in terms of the of the industrial competitiveness Easyjet is only behind Ryanair while comparing from other low cost operators Easyjet holds strong competitiveness. Interpreting SWOT analysis it can be said that Easyjet has strength in terms of popular brand, good financial strength and very good positioning. These aspects enable Easyjet to attain higher market share and visibility in the low cost airline business. Easyjet is facing threats in form of stiff competition and increasing fuel cost for the company. Generic strategies adopted by Easyjet include cost leadership and differentiation wherein Easyjet has adopted low cost leadership by lowering down their cost. Easyjet is lowering its cost by deploying several key strategies such as reducing its parking expense by parking its planes at the off the route airports and reducing the personnel cost by reducing number of human resource employed in the booking department of the company. Easyjet deploys only online booking methods so that there is no cost incurred for the booking for passengers.

2.5 Evaluation of research

Evaluation of research can be done in form of the fulfillment of research objectives for the current research. First objective i.e. understanding the financial performance of the company for last three years and it has been revealed that Easyjet’s performance has grown in the last three years in terms of higher revenue and margins attained by the company. Further this trend has been maintained by Easyjet since its inception due to which at present there is strong financial growth maintained by company which is helping it in deploying key competitive strategies for low cost airline segment (White, 1986). Hence first hypothesis can be accepted wherein it has been claimed that financial strength of Easyjet is growing year on year. Second objective of the present research i.e. future financial strength can be determined based on the cash flows and financial strength maintained by Easyjet. Looking into this, null hypothesis can be accepted which states that in future financial position of the company is growing and would be of importance in order to excel into the low cost field. Third objective for the present research was to examine the competitive positioning of Easyjet and with the help of various strategic tools such as Porter’s five force analysis, SWOT analysis and Porter’s generic strategy overall competitive strategy of Easyjet has been determined. It has been found out that Easyjet deploys high competitive strength in terms of strength & opportunities faced by the company. Also in addition to this, generic strategies deployed by organization are effective and unique which helps Easyjet to attain high market share and develop competitiveness among the consumers looking for low cost airline option for Europe. Hence all the three objectives of present research have been attained through collection of secondary data pertaining to Easyjet.

2.6 Recommendations and justification for further consideration

Analyzing current research based on the key objectives framed for Easyjet financial and business performance of the company has been explored. Further in order to further enhance the financial and business performance of Easyjet below recommendations can be extended which would help Easyjet to maintain its competitiveness in the European market and gain higher market share against its rivals operating in the low cost airline industry. Some of the key recommendations for Easyjet can be given as under:

  • Easyjet presently faces the opportunity of market expansion as Asian markets are quite favorable for low cost airline segment. Further present strength of comapny would allow them to enhance the markets in which Easyjet is operating (Wright, 1987).
  • Market expansion for Easyjet would also allow them gaining higher revenue and better growth can be observed in the total revenues and net margins of the company
  • It is important for Easyjet to develop strategic partnership with their suppliers for oil, planes and airport as well. Strategic partnership with the suppliers of company would help them maintaining their cost low in coming time which is very important as for low cost operators it is important to reduce their cost.
  • Increasing trend for internet usage would help Easyjet to develop higher customer base with online booking system, Easyjet need to encourage users to make booking through online methods only by offering special discount for the online users
  • Easyjet should also start counter booking system for the users who are not internet savvy as this would help them to cater to consumers who are not using internet
  • Easyjet can get into sub branding by launching their business class services as this would help in order to enhance overall customer base of the company by adding business class customers as well (Thierry, 2008)
  • Easyjet should look for the mergers and acquisition route in order to penetrate into Asians markets as company at present having high cash piles due to which it would be easy to takeover small companies catering to the Asian markets. This would allow Easyjet to expand their market and gain visibility as the international brand in the airline industry.
  • Easyjet should explore to reduce cost of advertisement in order to deploy low cost model and pass lower costing for their consumers based on which higher market share would be attracted by Easyjet
  • Easyjet is facing major threat for the cost increase due to higher cost for fuel in the international market. It is important to keep track of the movement in oil prices for the international market and based on the forecast for pricing Easyjet should place the order for oil procurement.
  • In order to enhance the competitive positioning of Easyjet it is important to collaborate with other players operating in the low cost airline industry so that higher routes can be adopted by Easyjet (Jelassi, 2008).

Justification for further consideration

Further research can be carried out for Easyjet by extending the present research context so that present research findings can be used and business & financial aspects of Easyjet can be further explored. In order to explore the area of financial and business domain adoption of suitable competitive positioning for Easyjet can be evaluated in overseas market such as Asian markets. Another area of research can be to evaluate on probability of market entry mode for Easyjet in Asian market (Jamroziak, 2003). Exploring low cost strategies which can be adopted by Easyjet in the European low cost airline industry can be another key area of research so as to understand the process of benchmarking from their rival named Ryanair.


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