Easy Jet Essay Example | Topics and Well Written Essays - 1000 words

Easy Jet - Essay Example Suppliers: Suppliers play a major role in any business. The suppliers provide the right product, material or service on the right time. Suppliers in the airline industry need to be accurate and specific on the products and services required. The airlines which are already developed and working in the industry like Easyjet have relatively more power on the suppliers. However, the most critical supplies like the oil prices are highly depended on the cost which is determined by the political and economical issues prevalent in the country. Hence, the airlines and specifically Easyjet does not have any control over such supplies and their costs. Boeing and Airbus are the major suppliers of aircrafts in the industry up till now. This concentrated number of manufacturers gives the suppliers more power over the airline industry. Airbus and Boeing are the major suppliers of commercial planes in the industry. EasyJet is running the airline business using a single kind of aircraft. This factor limits its power over the suppliers as the prospects of high profits and sales from Easyjet are limited for the suppliers. However, if EasyJet moves towards expanding its operations and overall business expansion, it may have higher bargaining power over the supplies and services from the suppliers. ... The threat of substitutes is low due to the competitive advantage of timeliness and quick service of the airline industry. However, the existing competitors like RyanAir, are posing a threat to the success of EasyJet by offering discounts to increase sales, providing better and more comfortable services and so on. These competitors play a major role in deciding the future sales, business growth and decisions of the EasyJet. A change in the price or nature of services of one airline business places a burden on the other to provide equal or competing options to attract customers. Hence the analysis of competitors, their strategies, cost cutting ways and factors increasing sales are of paramount importance for EasyJet (Mayer 2003, pp. 9-11). Distributors of EasyJet mainly consist of Internet Booking System and Telephone reservation Systems. These two modes of distribution are easy, user-friendly and flexible for the customers. These modes can be accessed anywhere and with minimal time t o process their request. These distribution modes are technologically equipped and hence less chance of error or frauds are present. Since 90 percent of EasyJet’s sales is acquired through internet Booking systems, the business is highly dependent on it. This distribution channel may harm the business’s reputation if some error occurs within the electronic processing of requests. It is however justifiable to believe that these distributors of EasyJet’s services play a major role in the company’s cost-effective plans (Mayer 2003, pp. 9-11). EasyJet offers low cost airline services to its customers. The customers who opt for such low cost services are more price conscious.