Swot Analysis Of Easy Jet

2160 words - 9 pages

Contemporary Business Management Coursework assignment 1SWOT analysis of EasyJetStrengthsThe corporate culture at easyJet is that of informality and adaptability. The company favors a flat hierarchy whereby the management work closely with those below them in the chain of command. Employees are given responsibility to make decisions themselves. This empowerment is not only eliminates wasteful layers, ensures any situation is dealt with as quickly bas possible but is also thought to increase employee motivation. (Maslow see appendix Fig.1). This type of adaptive corporate culture then links overall culture of "we're up for it" (http://www.opp.co.uk/solutions/consultancy/easyjet.asp) I feel that these points then go toward the framework creating more strengths for the company.Marketing Orientation of EasyJet has been adapted by easyJet as they aim to provide the basics that the customers need during a flight. This can be seen in the company's mission statement (See appendix fig.2)The organisation, that concentrates its services and its marketing strategies around the needs and the satisfaction of the customer, is marketing orientated. The motivation to buy is not about selling the firm's product, but discovering and complying with what the customer wants. The customer behavior towards a purchase is not completely defined by the price, rather is more related with what is the 'total package' of the purchase and how it fits their needs. So the lucrative points of a product are not only the price and the product itself but also useful information, high quality services and benefits that surround the product (Brassincton & Pettit, 2000).Since its merger with Go-fly in August 2002 easyJet has grown to become Europe's leading low cost airline now offering 114 routes from38 European airports (http://www.easyjet.com/EN/about/infopack_overview.html). This means it's the market leader in the 'no frills' airline industry.Not only has the company has maintained market leadership through constant research and development but it's been the first to do so and this has lead to a competitive advantage. for example "EasyJet has always been at the forefront of airline innovation, constantly exploring new ways of providing high quality, low-cost air travel with good value for money," said Moira Findlay, a regional marketing manager for the airline. (http://www.usatoday.com/travel/news/2003/08/20-easyjet-bags.htm)The company has been effective with its direct sales policy whereby booking can be made over the phone and Internet. Illustrating easy accessibility and hassle free bookings for customers. This has obviously been popular as the company now boasts that approximately 90% of all seats are sold over the internet. (EasyJet information pack see appendix Fig.3). This in turn means that the company has been effective in reducing distribution costsEliminating costs comes as one of easyJet's main strengths. Cost minimising is means that greater profit margins can be...

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