EASYJET
CASE STUDY
Contents:
I. Introduction
Question One
II. T he business environment in the airline industry in 1994
III. Evaluating attractiveness of the market using STEP
IV. Analysis of the competitive environment through Porter's five forces in 1994
V. STEP in 1998-1999
VI. Analysis of the competitive environment through Porter's five forces in 1998-1999
VII. Industry Cycle
VIII. Boston Consulting Group Strategic environments matrix
EASYJET
CASE STUDY
Contents:
I. Introduction
II. T he business environment in the airline industry in 1994
III. Evaluating attractiveness of the market using STEP
IV. Analysis of the competitive environment through Porter's five forces in 1994
V. STEP in 1998-1999
VI. Analysis of the competitive environment through Porter's five forces in 1998-1999
VII. Industry Cycle
VIII. Boston Consulting Group Strategic environments matrix
Introduction
The attractiveness of the budget airline sector changed considerably between 1994, the year preceding easyJet's launch and 1998-9 by the time easyJet and several other budget airlines were operating in Europe.
Illustration of Porters 5 Forces. Illustrates arti...
Juan Trippe. De :en:Image:Tran12G7.jpg - Library o...
English: CEO of Norwegian Air Shuttle, Mr Björn K...The attractiveness, or potential profitability, of the airline industry as a whole in 1994 and the budget sector in particular, should first be considered in order to investigate the issues Stelios Haji-Ioannou was facing when entering the industry. By 1999, the competitive environment within the budget sector had been transformed and the strategies required to remain profitable needed to be looked at closely.
Question One
The business environment in the airline industry in 1994
Prior to the deregulation of the European airline industry, national airlines had benefited from a protected position and some flag carriers had operated in monopolistic or oligopolistic positions on key routes. British Airways, KLM and Swiss Air for example had developed hub and spoke operations centred in London Heathrow, Amsterdam and Geneva respectively. EU legislation in 1992 made it possible for any European carrier to...