EasyJet: In-Depth Analysis of Europe's Leading Low-Cost Airline
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Introduction: EasyJet: In-Depth Analysis of Europe's Leading Low-Cost Airline
EasyJet is a low-cost airline which operates across Europe. It was founded in 1995. The airline has remained one of the largest and most popular low-cost carriers in the region (Easy Jet, 2023). EasyJet emphasises on delivering affordable air travel with no frills, targeting both leisure and travellers. EasyJet connects major cities and well-known tourist locations throughout Europe with a vast network of domestic and international flights. The company maintains a presence in numerous airports across Europe, but London Gatwick Airport serves as its main hub.
The majority of EasyJet's fleet consists of Airbus types, notably the A319 and A320. These aircraft are renowned for their effectiveness and capacity to transport many passengers at a time while still keeping low operating expenses (Easy Jet, 2023). EasyJet uses a low-cost business model, which entails charging extra for extra services and amenities while maintaining reasonable fares. Depending on their tastes and requirements, passengers can select from a variety of fare levels, including basic, standard, and flexible. EasyJet predominantly uses online platforms, making it easier for clients to make flight reservations, manage existing ones, and check in via their website or mobile app. Additionally, they operate a frequent flyer programme called easyJet Plus, which provides advantages including priority boarding and free seat selection. EasyJet aims to provide effective customer service, and it does so by providing help via a variety of channels, including phone support, online chat, and social networking sites. EasyJet has been making efforts to lessen its influence on the environment. (Baron, 2012) Initiatives including carbon offset programmes, purchases of more fuel-efficient aircraft, and research into the use of electric and hybrid technology for ground operations have all been put into place. Numerous domestic and international routes connect Europe's major cities and well-known tourist spots.
Business and organisational purposes
The underlying reason for an organisation's existence is referred to as its organisational purpose. It encompasses the organisation's larger social influence and contribution, which extends beyond the pursuit of monetary gains (Clegg et al., 2019).
Mission: EasyJet aims to deliver seamless and digitally enabled customer journeys at every phase, and they are working to improve the customer experience (Johar et al., 2020). The company tries to be efficient with network choices, focusing on maximising returns. Easy Jet makes the performance easier and more enjoyable. EasyJet has a network of routes connecting major cities and well-known tourist attractions around Europe in an effort to connect people and communities. The airline wants to make flying affordable for a wide variety of people by facilitating both leisure and professional travel.
Vision: They are focusing on improving control and decision-making across operations. The company delivers a strong on time performance to remain consistent with the emphasis on slot strained and congested airports.
Objectives
To make the rides more enjoyable and affordable for business and holidays.
To protect and build brand awareness.
To make appropriate use of digital technologies to underpin growth and strengthen customer relationships.
EasyJet is dedicated to reducing its environmental impact and advancing environmentally friendly flying. The airline sets goals to lower carbon emissions, purchase aircraft that are fuel-efficient, and research creative strategies to achieve environmental sustainability.
Organisational structure
EasyJet uses an efficient, flat organisational structure, which is typical of many major businesses. With this organisational structure, the company is split up into numerous departments or functions, each of which is in charge of a certain operational area (Noone, Lin and Sharma, 2022). Few hierarchical levels and a small number of layers between lower-level employees and top management are characteristics of a flat organisational structure, sometimes referred to as a horizontal or decentralised structure. It usually has fewer managers, supervisors, and middle-level executives, which makes the organisation flatter and more efficient. Compared to a conventional hierarchical structure, managers and supervisors have more personnel under their control in a flat organisation (Hamilton and Webster, 2018). This encourages shorter communication routes and a more direct reporting arrangement. EasyJet works in a thriving, cutthroat market. A flat organisational structure facilitates quicker decision-making by giving decision-making power to staffers who are more on the front lines. EasyJet is able to respond swiftly to changes in the market, customer expectations, and operational issues thanks to its agility.
A flat organisational structure encourages direct and effective contact between staff and management since communication paths are shorter. This enables improved collaboration, prompt information dissemination, and prompt problem-solving. It assists EasyJet in maintaining efficient communication throughout its extensive operations. The knowledge and commitment of EasyJet's staff are essential to the company's success (Diaconu, 2021). Employees are empowered by a flat organisational structure because it gives them freedom and decision-making power in their assigned tasks. As a result, there is greater employee happiness and performance, as well as an increased sense of drive and engagement.
In a flat organisation, EasyJet may benefit from cross-functional collaboration and innovation. EasyJet may benefit from a range of viewpoints and foster a culture of cooperation, creativity, and ongoing progress by inviting employees from other departments to collaborate on initiatives. Cost effectiveness is important to EasyJet because it is a low-cost airline (Xuan et al., 2021). By minimising managerial overhead and lowering bureaucracy, a flat structure can aid in cost savings. Because there are fewer levels of management, there are also less administrative and managerial wages, which enables EasyJet to more effectively allocate its resources.
In order for EasyJet to succeed, it is crucial to fulfil client demands and expectations. A flat organisational structure promotes open dialogue and decision-making near the client interface. As a result, EasyJet is better equipped to comprehend client preferences, react to criticism, and provide improved customer service. EasyJet must be agile and flexible in a sector that is evolving quickly. EasyJet can respond swiftly to market dynamics by adjusting its plans, launching new services, and seizing opportunities thanks to a flat organisational structure.
Organisational function
The various departments or divisions within an organisation are referred to as having organisational functions when they carry out particular activities and support the general operation and accomplishment of the organization's objectives. Depending on the sector and the organisational structure, each function supports the activities of the company in a distinctive way.
Human Resource: The strategic handling of an organisation's human capital, which includes its people and their knowledge, skills, and capacities, is known as human resource management (HRM). In order to attract, develop, and keep a competent workforce, HRM of EasyJet is essential to the success of the organisation. The organisation's HRM department is in charge of finding and hiring qualified candidates to fill open positions. This includes creating job descriptions, promoting openings, reviewing resumes, holding interviews, and choosing the best applicants (Asatiani et al., 2021). HRM of Easy Jet is in charge of offering employees opportunities for training and development to advance their abilities. This could be career development programmes to encourage continual learning and growth, onboarding programmes for new hires, ongoing training to keep staff members current on industry trends, etc. Setting performance goals, giving regular feedback, performing performance evaluations, and finding areas for growth are all part of the performance management activities that HRM of EasyJet monitors. It seeks to match team and individual performance with organisational goals and offer chances for rewards and recognition.
Finance: Planning, organising, regulating, and monitoring an organization's financial resources in order to accomplish its financial goals and objectives is known as finance management. Making strategic financial decisions, controlling cash flow, examining financial data, and maintaining the stability and expansion of the company's finances are all part of it. Easy Jet's finance management evaluate potential investment opportunities and choose how much money to devote to certain initiatives or projects (Al Masaeid, 2020). To make well-informed decisions that maximise shareholder value, they evaluate the prospective rewards, risks, and viability of ventures. To evaluate the organisation's financial performance, the management compile reports, prepare financial statements, and analyse financial data. To help with decision-making and to meet reporting requirements, they assess profitability, liquidity, solvency, and efficiency ratios.
Operation: In order to maintain the seamless and effective operation of the airline's daily operations, EasyJet's Operations Department is essential (Vasuki and Aravindan, 2021). In order to provide passengers with a dependable and high-quality service, it is in charge of handling a variety of operational aspects. Choosing flight paths, frequencies, and timetables is their responsibility in order to maximise operational effectiveness and satisfy passenger demand
Organisational culture
A particular group or organisation's common views, values, conventions, behaviours, and symbols are referred to as its culture (Tran, 2021). It depicts how members of a team or organisation think, behave, and communicate with one another. Culture affects how people see and understand the world, and it shapes how they act and make decisions. A group or organization's culture may take on a variety of forms. Four categories of culture are frequently recognised:
Clan culture: There is a "Clan culture" that is distinguished by a supportive and cooperative atmosphere. Clan cultures place a strong emphasis on cooperation and unity. Within the organisation, there is a heavy emphasis on developing relationships, encouraging open communication, and cultivating a sense of community. Individuals are urged to collaborate and work as a team to achieve shared objectives (Joseph and Kibera, 2019). Clan cultures place a high value on the advancement and welfare of employees. Training, mentoring, and ongoing education are highly valued. Clan leaders actively assist their staff members' personal and professional development by offering advice and chances for progress. The common values and ideas that inform behaviour and decision-making are the foundation of clan cultures. The importance of moral conduct, mutual trust, and respect is frequently emphasised. Clan cultures have a tendency for their employees to identify with and be dedicated to sustaining the company's principles.
Adhocracy Cultures: Adhocracy cultures are entrepreneurial and active. They support risk-taking, creativity, and innovation. Adhocracy-based organisations place a high value on adaptation, flexibility, and the capacity to act rapidly in the face of change (Njagi et al., 2020). Adhocracy cultures support an atmosphere that promotes creativity and innovation. Employees have the freedom to come up with original concepts, take chances, and try out novel strategies. Innovation is encouraged by experimenting and learning from mistakes. A start-up attitude or an entrepreneurial spirit is frequently present in adhocracy cultures. In order to succeed, there is a focus on looking for new opportunities, pursuing endeavours, and taking measured risks. The company promotes and assists individuals who approach their work with an entrepreneurial mindset.
Market Culture: Market Culture: Market cultures are aggressive and focused on getting things done. They place a strong emphasis on success, rivalry, and achieving goals. Market-oriented businesses place a strong emphasis on creating and exceeding goals, outperforming rivals, and fostering both individual and corporate success. Market cultures place a high value on generating quantifiable results and hitting deadlines (Tran, 2021). Performance and results are highly valued, and people are expected to take responsibility for their actions. Within the organisation, decision-making and activities are governed by clear aims and objectives. Market cultures encourage a competitive mentality and a strong focus on the client. Delivering high-quality goods or services and having a competitive edge in the market are prioritised, along with comprehending and addressing consumer expectations.
Hierarchy culture: Organisations with a hierarchy culture prioritise adhering to established procedures and have distinct lines of authority and duties (Tran, 2021). A formalised organisational structure with distinct jobs and duties exists in hierarchical cultures. The chain of command and reporting connections are well defined. Authority and decision-making are centralised, with the highest echelons of the hierarchy holding the most of the decision-making power. Maintaining a stable and dependable work environment is prioritised. Change is often done over time and only after great thought. To maintain smooth operations and reduce disruptions, stability is important.
SWOT analysis
Strengths
Strong brand recognition: EasyJet has made a for itself as a trustworthy and well-known brand in the low-cost airline sector, drawing in a sizable clientele.
Large route network: The airline has a vast network of flights throughout Europe, providing practical travel options to a number of places.
Cost leadership: EasyJet operates with a low-cost business strategy and has a great emphasis on cost efficiency, which enables it to provide customers with reasonable fares (Amankwah-Amoah, 2019).
Strong operational performance: The airline has a history of running operations that are effective, with rapid turnaround times, high aircraft utilisation, and punctuality.
Weakness
Long haul presence : The operations of EasyJet are primarily focused on short-haul flights, which restricts its capacity to serve long-haul travellers.
Dependence on seasonal demand: Because travel is cyclical, EasyJet faces swings in demand, with peak times during the summer and holiday seasons.
Limited consumer loyalty: Compared to full-service airlines that provide extra amenities and incentives, EasyJet has a harder time developing strong customer loyalty.
Operations can be disrupted by things like bad weather, strikes, or airspace limitations, which can have a severe effect on both customer happiness and EasyJet's operations.
Opportunities
Increasing demand for low-cost travel: EasyJet has a chance to increase its market share and draw in new clients as a result of the rising trend of budget-conscious travellers (Zhang et al., 2020).
Expansion into new markets: EasyJet has the ability to broaden its service areas and target untapped routes in order to obtain a competitive edge.
Digital transformation: For EasyJet, utilising technology and digital platforms can improve operational effectiveness, improve the customer experience, and increase income.
Partnerships and alliances: By establishing strategic alliances and partnerships with other airlines or tour operators, EasyJet can increase its customer base, provide more services, and boost its market share.
Threats
Intense competition : Competition is fierce in the low-cost airline sector, and the several airlines fighting for market share could lead to price wars and decreased profitability.
Economic uncertainties: Recessions, fuel price swings, and currency exchange rates can have an impact on consumer travel spending and have an impact on EasyJet's bottom line (Xuan et al., 2021).
Regulatory environment: Changes in the regulatory environment, particularly those pertaining to aviation safety, security, and environmental effects, may have an influence on EasyJet's operations and raise the cost of compliance.
External event disruption: As COVID-19 has shown, unexpected occurrences like pandemics, terrorist attacks, and natural catastrophes can seriously affect demand for and operations for air travel.
PESTLE Analysis
Political: Changes in governmental laws, such as taxation, safety and security rules, and aviation legislation, may have an effect on EasyJet's productivity (CIPD, 2023). Given that EasyJet has significant operations throughout Europe, the UK's exit from the European Union may result in new trade restrictions, regulatory confusion, and major disruptions to the aviation industry.
Economic: The demand for air travel can be impacted by general economic factors like GDP growth, inflation rates, currency rates, and consumer confidence levels, which can also have an impact on EasyJet's revenue and profitability (Christodoulou and Cullinane, 2019). COVID-19 has impacted the industry heavily and the airlines industry has witnessed sales dropdown. Since fuel is one of the key cost components for airlines, fluctuations in fuel prices can have a considerable impact on EasyJet's operational costs.Changes in consumer travel spending can have an impact on disposable income levels and the demand for EasyJet's services.
Social: The sales of specific commodities and services can be significantly impacted by changes in socioeconomic variables (Christodoulou and Cullinane, 2019). Consumer preferences may change as a result of growing environmental consciousness, favouring airlines that exhibit sustainability initiatives and eco-friendly practices. In order to keep up with trends and create products that are suitable for both market needs and social demands, the industry must operate efficiently. It is challenging for the business to match customer needs because of market rivalry. As a result, the industry's primary responsibility is to identify societal demands.
Technological: EasyJet has potential to improve customer experience, streamline operations, and increase efficiency as a result of technological advancements, such as the expansion of online platforms, mobile applications, and digital marketing (CIPD, 2023). Data security and privacy are vital for EasyJet's reputation and consumer trust, given the growing reliance on digital platforms. EasyJet must safeguard customer data and adhere to data privacy laws.
Legal: Retail establishments are subject to constraints such as labour regulations, excise and taxation rules, and other related business laws because organisations operate inside a nation's legal framework (Kassem, Salama and Ganepola, 2023). As businesses in a sector expand into numerous countries, the effectiveness of legal principles becomes increasingly important because the legal systems of those countries differ substantially from one another, making it challenging for corporate rivals to join new markets and countries. A legal infraction may lead to a ban, restrictions, insolvency, or the entire collapse of the business.
Environmental: There is no doubt that since more individuals have been aware of the need to protect the environment and enact environmentally friendly legislation, the population's propensity for environmental behaviours and awareness has increased (Cox, 2021). Additionally, the retail company sells food products, whose disposal is crucial for maintaining the ecosystem's equilibrium because it may accumulate for a variety of reasons. In order to get rid of their trash in a way that is secure, beneficial to the environment, and profitable for their business, merchants must devise effective solutions.
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Conclusion
The global pandemic and inflation have presented strong threats to the company. During the pandemic, the operation was EasyJet possesses strong brand recognition and it is known as the low-cost airline industry, which attracts a large customer base. It operates within a wide network of routes across Europe, which offers convenient travel options to different destinations. It has a strong focus on cost efficiency, making it a competitive organisation. The airline possesses a track record of effective operations, including quick turnarounds. The operations emphasise short-haul flights, which abandons the limits to cater to long haul travellers. It faces several challenges in developing a strong customer base. Easy Jet is susceptible to various disruptions, like adverse climatic conditions, which impacts its customers. The high demand of budget conscious travellers reflects an opportunity for Easy Jet to grasp a larger market share and appeal to new customers. Easy Jet has the capability to expand their operations into new markets and gain competitive advantage. The changes in regulations, especially in aviation security, can increase the various compliance costs and affect the operations of EasyJet.
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