Joe DavidSWOT analysis of easyJet (A Strategic Analysis)
This detailed SWOT analysis of easyJet aims to analyse the strengths and the weaknesses of easyJet. It also aims to examine the opportunities the airline should explore and the threats it should keep an eye on. easyJet is a British airline, headquartered in London Luton Airport.
Strengths of easyJet
EasyJet is a low-cost European point-to-point airline. It is based in London Luton Airport which is one of the busiest airports in the UK. It operates from 29 bases across the UK and Europe. It flies to more than 31 countries and serves over 750 routes. It carries 65 million passengers annually including 12 million business passengers. It has the largest presence on the top 100 routes in Europe (easyJet, 2022).
easyJet is the largest airline in the UK. It is also the fourth largest in Europe and the tenth largest in the world. This span of operations speaks volumes. It is also worth mentioning that easyJet is the second-best low-cost airline in Europe (Skytrax, 2022). It is also one of the lowest-cost airlines in the world.
Furthermore, easyJet was voted Best Short Haul Airline 2020 by Business Travel Awards, and Best Airline App in the World 2019 by World Aviation Festival’s. These awards and accolades along with many other over the years have increased its brand reputation which in turn has helped it grow further. Its easy-to-use website and on-time services are also noteworthy.
easyJet employs over 13000 people. It has more than 4000 pilots and 7000 cabin crew members. Its people management strategy has contributed to customer loyalty which is another great strength of easyJet (easyJet, 2022). It has seen an increase in customer loyalty in its core markets. Also, its recent vow to become the world’s first major airline to operate net-zero carbon flights has been received by stakeholders with much enthusiasm.
One of the best things about easyJet is its refund policy. It was hailed by numerous customers who shared their positive experience online. During the lockdown in 2020, it had to cancel many flights and refund the passengers. What made many passengers happy that it did not delay in issuing refunds which some other airlines were accused of. Refund procedure was easy to follow whether passengers had bought the service directly from it or from a third party.
Weaknesses of easyJet
Analysis of weaknesses is a key area in the SWOT analysis of easyJet. Like many other budget airlines, easyJet’s earnings often rely on the summer season. This reliance may make the airline vulnerable to any uncertainty and challenges which may occur during the season.
Another weakness that EasyJet has is the lack of innovation. As competition in this industry increases, it becomes more difficult for it to differentiate it from other airlines. This makes it hard for it to get new customers because customers are more likely to choose the brand which has something unique or innovative to offer.
Opportunities for easyJet
easyJet can grow further by exploring new routes in Europe. New airports and runways in the UK and Europe will also offer it further opportunities for growth. It can increase its flights in the UK and Europe so that it can provide more competitive fares. It could also open new routes or even buy other airlines.
easyJet has mostly young travellers going away for summer/winter holidays and weekend party trips. This sometimes alienates older travellers. Therefore, focusing on other demographics is certainly worth the effort.
Collapse of several airlines and tour operators in the recent years offers easyJet a great opportunity. It can now pursue and benefit from the gap left by those companies in the package holiday market. In fact, its decision to relaunch beach holidays and city breaks is a move in the right direction.
Threats to easyJet
The last element to address in the SWOT analysis of easyJet is the threat/s. The airline has a number of direct competitors in the European low-cost airline industry. Some of its main European rivals are Ryanair, IAG, Flybe, Norwegian Air Shuttle, Pegasus Airlines, Vueling Airlines and Wizz Air. It is worth noting that some competitors offer cheaper flights to major destinations like Paris, Berlin, Rome, Madrid, Barcelona, and Lisbon. Therefore, easyJet needs to find a way to provide customers with a better value proposition if it wants to keep up with this competition in the future.
Like most other airlines, easyJet is also faced with Brexit challenges which may affect the operations of the airline both in the UK and the EU. It is yet to see clearly what Brexit would exactly mean for easyJet and other airlines in the long-term. Likewise, any political instability in Europe will also have challenging implications for the airline.
Another threat to EasyJet is the high price of aviation fuel. In order for a business to succeed, it needs to be able to operate at an affordable cost. High fuel prices can threaten EasyJet’s ability to operate and provide what passengers are expecting from it.
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You may also like reading Marketing mix of easyJet (7Ps of easyJet). Other relevant articles for you are:
SWOT analysis of British Airways
Marketing mix of Emirates Airline
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Last update: 25 January 2022
References:
easyJet (2022) About: Strategy, available at http://corporate.easyjet.com/about/strategy/ (24 January 2022)
Skytrax (2022) World’s Best Low-Cost Airlines 2021, available at: https://www.worldairlineawards.com/worlds-best-low-cost-airlines-2019/ (24 January 2022)
Author: Joe David
Joe David has years of teaching experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality, and tourism management. He holds a Postgraduate Diploma in Management Studies and a Post Graduate Diploma in Marketing Management.
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