This week, we learnt SWOT analysis. SWOT analysis is about the strength, weakness, opportunity and threat. I think that is pretty interesting. And i would love to apply SWOT analysis to easy jet case study.
Speaking to the strength, i think easy jet has many strengths which can make it become one of the biggest budge airlines in the UK. Firstly, easy jet has a strong reputation and brand awareness. This is because that easy jet has been fruitful as it enjoys broad recognition around Europe ane especially in UK. Secondly, easy jet has low cost and low fares as well. Easy jet always keeps costs low by eliminating the unnecessary costs and 'frills' which characterise 'traditional' airlines. For instance, they will provide online booking to reduce distribution costs. Moreover, they will maximise the utilisation of airport and aircraft. Furthermore, they will not provide the free lunch as well in order to lower their fares, Thirdly, easy jet has a wide range of destinations in Europe. Lastly, they provide speedy and flexible operations as well.
Talking about the weakness, i think easy jet has limited departure airports which means that the main airport for easy jet is Luton airport. Although easy jet flights to any Europe big cities such as Paris, Rome, Milan, it still misses some important airports to stay just like London Heathrow airport. For most people who live in London, this is a very inconvenient point. That will cost more money for the customers. However, the flight fees are cheaper than other airlines, they need to pay extra money to go to Luton airport. Moreover, they provide the online booking service, but for some elder people or the people who do not use the internet, it is inconvenient to book on line. Therefore, they should better to add some telephone line services to give more help to some people who need help.
And the opportunity for easy jet, i think they have a large market to expand. For example, European deregulation 'open skies' has transformed the industry restructuring of major airlines frees slots in airports and resource, which makes easy jet more easily to expand their business bases more throughout UK and mainland Europe. And as the new markets, besides in Europe, easy jet could find out more potential markets, such as Asia. This is because Asia is becoming a flourishing travel place, there must be more and more tourists and residents want to travel around by air. This is a big potential market for easy jet. Moreover, the internet revolution will also helps easy jet as more and more people are using the internet service, the booking system of easy jet is more accessible to the customers.
When talking about the threat, easy jet is facing the increasing competition as well. There are more and more competitions bring saturated market and more low-fare new entrants are affecting easy jet. On the other hand, the developing IT will affect easy jet too as the new technology on telecommunication will possibility lead to the decline of frequency on business trip, more and more companies are using long distance meetings. Therefore, it will influence the business flight for easy jet. Furthermore, the increasing fuel price will also influence easy jet as the group fuel risk management policy aims to provide protection against sudden and significant increases in jet fuel price while ensuring easy jet may also benefit from price reductions. Lastly, the high bargaining power of suppliers will also affect easy jet.
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