Easy Jet Plc. Strategic Analysis Essay

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This is evident in reports such as the one by Rothman (2009), indicating that airlines were struggling in the economic downturn. A handful of exceptions to the struggle were mentioned, of which easyJet was one.

Pricing Strategy

EasyJet's low prices are its most powerful weapon (Stirmedia, 2005). Its market position is therefore significantly strong because of this. The company's focus on efficiency in terms of strategy, pricing and routes have made it one of the leaders in its market. Indeed, the growth of the airline has shown that the main consideration for customers in choosing airlines is price rather than the type of additional services they receive on board.

Political, Economic, Social and Technological Factors

Political factors that could affect easyJet's operations include employment laws. The company is paying its employers less than the market average for traditional airlines (Karivate, 2004). A risk could be created should government regulations change to force these wages higher.

As mentioned above, economic factors play a major role in the industry today. Because easyJet offers lower fares, customers affected by the economic downturn chose it in favor of traditional airlines. Furthermore, the company's economic prowess is such that it is able to withstand factors such as fuel cost increases (Hasell, 2009).

In terms of social factors, easyJet focuses upon safety as a top priority for its personnel and customers (easyJet, 2009).

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Safety is ensured in terms of a safety management system that ensures the maintenance of equipment and aircraft is optimal. Flight and cabin crews are kept up-to-date on safety features at all times.

In terms of technological factors, easyJet has implemented an online booking system to make boarding more convenient for its customers. As mentioned above, not all customers might consider this an advantage.

Recommendations

EasyJet's current strategy includes four components: optimizing safety, building the No. 1 transport network in Europe, developing a winning customer proposition, and continuing in its delivery of low-cost products while maximizing its profits. This strategy has served it well in the past, but according to news reports such as the one published in 2003 (easyJet.com), the company never stops critically assessing any needs for improvement.

In the future, it is recommended that easyJet continually monitor its customer base for suggestions on how to improve its service. It might even consider a more convenient way of booking for customers without access to the Internet, for example. Telephone or fax booking could be suggestions in this regard.

In conclusion, easyJet appears to be one of the strongest companies in its market. Its customer numbers are growing on the strength of its sound existing strategy and its focus on quality, even while maintaining a no-frills service. This paradigm is bound to ensure its.....

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