Market Entry Strategy: Easy Jet in India
This report contains analysis of Easyjet’s UK and European markets using information contained in the given case study and also from sources outside the course of study.
To begin with a brief overview of the company will be given. Subsequently using PEST and Five Forces models the external analysis will be completed identifying the companies’ core resources and capabilities.
Next the core of the previous analysis will be used to examine the opportunities for international expansion into the Indian market. The investigation will use theory to outline the threats and opportunities of entering this market.
1 INTRODUCTION – THE COMPANY AN OVERVIEW 1 2 EXTERNAL ENVIORNMENTAL ANALYSIS 2 2.1 PEST Analysis …show more content…
Future technological advancements in aircraft design and manufacturing will help airlines being competitive in the future with improvements on greener travel and fuel efficiency.
(For more detailed analysis see Appendix 9.1.4)
INTERNAL ENVIORNMENTAL ANALYSIS
Porter’s Five Forces
Bargaining power of Suppliers (Moderate)
With two commercial aircraft suppliers at the helm of aircraft manufacturing bargaining power of aircraft suppliers is moderate. Boeing and Airbus are the most prominent aircraft suppliers (Madslien 2011). Although competition is high between them switching costs can be large due to the retraining of pilots and mechanics.
Fuel being the most prominent expense in the airline industry it is important for airlines to reduce risk of possible losses due to rising oil prices. This is done by hedging of fuel prices to ensure no rises in costs over a certain time period (likely to be 6 months) (Milmo 2008).
Airports slots in larger airports are more expensive due to demand and resultant bargaining power of airports (Mintel 2009).
(For more detailed analysis see Appendix 9.2.1)
Bargaining power of Buyers (High)
The bargaining power of buyers is high. It is a very competitive with many airlines aiming towards cost leadership as their competitive strategy. Customers are particularly price sensitive in the low cost market. Their loyalty to airlines is extremely low. It is simple to switch airlines