EASY JET

Easy Jet



Easy Jet

Introduction

This report will analyze EasyJet's business model in this highly competitive aviation industry. EasyJet is a low-cost, no-frills airline founded by Stelios Haji-Ioannou in 1995. Stelios' mission in founding this company is to “offer low-cost airline service to the masses.” The concept of budget airline is derived from the idea that demands for short-haul air transport is price elastic. That means, if prices for flights are being reduced, the consumers' demand will increase significantly. The mission statement of EasyJet's founder, Stelios is “To provide our customers with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes. To achieve this we will develop our people and establish lasting relationships with our suppliers.” (EasyJet)

Easy Jet IT Analysis

The first part of this analysis would distinguish the information systems development in EasyJet to evaluate the changes of its business conduct and ultimately enable this company to identify the strategic opportunitiesThe second part would blended the value chain SWOT model described the internal and external audit based on the outcomes of value chain levels of the company. The third part of this report would apply Porter's five forces to outline the nature of the competitive environment that the organization faces currently.

At last, this report would conclude three strategic focuses (cost leadership, focus and differentiation) in pursuing its global strategies while recommendations were made based on the findings.

An Evaluation of Development of Electronic Commerce in EasyJet E-Commerce was a general term for the conduct of business with the assistance of telecommunications, and of telecommunications based tools as per illustrated in Figure 2.1 on an E-Commerce model.

Undeniable, the airlines industry was among the most active in the adoption and application of Information Technology. Information Technology usage was expanding very fast, especially with incorporation of computer technology in reservations and ticketing system since the mid 1970's (Timmer, P., 1999).

EasyJet was the first budget airline company which practiced Business to Commerce (B2C) transaction in the airline industry in Asia. Since EasyJet introduced online booking air ticket through its website in May 2002 and hence used computer network to conduct its business operationally, it had recorded about 40% of the total revenue which were made via Internet transactions.

In the past, E-Commerce has been inhibited by high cost and complex procedures (Lauden and Lauden, 1998). Nevertheless, the concept of E-Commerce strategy defined by EasyJet was significant, the usage of Internet has transformed from an auxiliary communication media for large organizations towards an entrenched communication media, which the always neglected medium and small size organizations become possible in attracting online users, ultimately, businesses were then able to expand while keeping the overhead costs within control (Asian Airlines & Aerospace, 2002a, 2002b). Especially, the World Wide Web has had changed this scenario radically, due to the development of E-Commerce and new Internet technologies emerged, the connectivity over the Internet was cheap, increasingly secure, reliable and built on standards ...