The main focus of your research is on the exterior and internal research by way of PESTEL analysis and also through SWOT evaluation, from this two analysis for both companies we have tried to examine various factors such as scientific, environmental and legal factors which could effect the company's development and through SWOT evaluation we have focused on the companies Power and Weakness where in fact the company lacks or possessed a strong keep in the market. We also attempted to focus on various other aspects like the corporate strategy recognise the business uses and have also attempted to exploit the marketing mixture recognise the business uses to market its brand as well as the target market which company targets or relies because of its business.
The whole reason for this article is to analysis the problem of entire airline industry as a whole as well as the key issues which companies face in operating their business, and lastly we would provide your conclusion of the whole and recommendation to the complete research.
British Airways is one of the most popular airlines in UK and one of the biggest airlines which operate more than 550 vacation spots globally. British Airways was set up on 25th August 1919 and has completed 91yrs of operation in the industry. This largest planned international flight of UK not just performs in international and local schedule but also, provides the charter services for ancillary and freight (United kingdom airways 2010). It employees' around more than 57000 employees' till particular date (Data screen 2010). It carries more than 33million individuals, and earning billions in revenue. Located in the main business place of London, the business has significant occurrence at Heathrow, Gatwick and London City. The business has an extremely strong customer base as, it operates throughout the world. Uk Airways is divided in to two groups an example may be United kingdom Airways Plc and other one as English Airways holidays Small. (http://www. britishairways. com/travel/aboutba/public/en_gb)
Easy Aircraft was founded Stelios Haji-Ioannou (Greek) the company in 1995 and has the hq at Luton Airport terminal, Bedfordsire London, It has generated on the low-cost, no-frills style of the united states carrier Southwest. The concept of easy Jet is based on the fact that requirements for short-haul air travel is price elastic. Which means, if charges for flights are being reduced, more folks will journey. Today, it offers 125 routes from 39 Western european International airports (see www. easyjet. com), with Luton, Liverpool, Geneva, Amsterdam as platform airports and it is working 72 aircrafts It employees' more than 2870 people. It is one of the leading low-budgeted airlines in UK & European Union. (Source: www. easyjet. com)
Situation Examination of Airlines Industry:
Air travel remains a huge and growing industry. It facilitates economic growth, world trade, international investment and tourism which is therefore central to the globalization taking place in many other industries.
In days gone by decade, air travel is continuing to grow by 7% per time. Travel for both business and leisure purposes grew highly worldwide. Scheduled airlines have transported 1. 5 billion individuals last year. Airlines' profitability is closely linked with economic growth and trade. Despite this, the airline industry has gone along the road towards globalization and consolidation, characteristics associated with the normal development of several other industries. It did this through the establishment of alliances and partnerships between airlines, linking their sites to expand access to their customers.
External Evaluation of Uk Airways and Easy Jet:
For the success of the flight industry, it's very necessary of all organization to check out their exterior environment. This aims to check out aims and purpose of the firms as well as the business's position, the competitors and also looking at at the capability of both companies to meet current and future obstacles.
Political Factors: Johnson et al. , (2005) a) Heavy legislation of government impacts the whole flight industry like boost the security of people scheduled to terrorist risks, b) Also sufficient security measures should be in location to ensure that traveler confidence and competitive benefit is maintained at all the level, c) Another factor which impacts the British Airways as well as effortless jet is the condition of trade unions that have influenced the most to the flight because of attack in the company and also the implications were saviour, d) As the flight is deregulated for almost all of the firms like BA and Easy Plane there are many other factors like prices and government treatment to safeguard the employees' right which always equal befitting the worker e) the politics instability of the federal government is also a threat for the complete flight industry.
Economic factors: a) The global monetary crisis across the world and the Eurozone getting afflicted the most anticipated to currency weakening against other currencies b) Additionally it is anticipated to possible decrease in the business of travel and tourism and also company reducing the cost, such as looking for different method of communication c). Also the volcanic ash cloud which disperse over the euro area on 15th April 2010 which almost helped bring the business enterprise of air travel industry a halt scheduled to disruption in the flights take off and which lasted for more than a month d) also slowing of economy around the world which resulted in lesser passenger travel as well as the price war across the industry which led to huge competition, e) The fluctuations in the oil prices across the globe which affects the purchase price base of both airlines and also the exchange rates.
Sociological factors: a) The increasing age society in UK which really is a major worried for the country as the older people prefer to travel by other means of transportation as their spending electric power is less, b) The other factor is the growing unemployment in UK which reduces the purchasing power of folks, c) Increased bargaining power of the workplace for their employee's due to the companies spending on their employee's for his or her leisure and development, c) More spending by old generation as they have more leisure time to invest.
Technological factor: a) Due to increase technology like online service by the air travel the major impact is the client has more choice in assessing the purchase price as well as increasing customer understanding and bargaining electricity. b) The companies need to get updated with progress technology, c) THE BUSINESS in addition has to be isolated that the technology they use is friendly and it is more comfortable to seniors, d) The company needs to get upgraded on the systems and ensure they may be properly used and looked after which is also a huge cost on their behalf.
Environment factor: a) The sound and energy control which needs to be regulated due to environmental issues, b) The limited lands designed for the growing or extension of the international airports due to losing green area belt and administration regulation on the environment, c) Other factors are new legislation (eg. Climate control) or also enforcing of tighter environmental legislation and also day to day increase of operational cost due to change in environmental plans, c) Limited utilisation of resources and capacity.
Legal factors: a). The airlines mileage program is in the form of perks to the employee's in the way of gifts like vehicles are taxed, b) Start skies arrangement by the airlines with the federal government which allows the companies to by any others. c) Currently there a wide range of legal restrictions by the government for buyout of any business and current holdings of the Western companies in virtually any airlines. c) Opportunities for competition to acquire the aircrafts between EU and US, this are great threat for both companies of huge competition from other non-European airlines.
Internal Examination: a) As part of EU easy aircraft has a great image as an inexpensive airline and is different from other competitors as compared to price and the as brand image which it carries. The company is financial very strong and is prosperous in the industry. It has an extremely strong e-business and it is been in innovative and incredibly flexible organization in conditions of business.
For Uk Airways the best strength is based on its brand and its own new fleet of aircrafts which gives tremendous comfort to the travelling passenger. The greatest strength is based on its operational staff and the ways that your airlines operates and also the strong customer target and developed experience in the field of customer service, by providing the top quality service to its customer. The essential work of the airline is to keep upgrading its systems and also innovating or checking out new means of providing highest level of customer support.
The universal problem with both the companies is they haven't any customer retention plan, lack of versatility and don't focus on business equally. As low cost airlines easy aircraft model of working is unappealing for most of the business vacationers. The style of low-cost airlines is way most similar to some on the new or existing airlines and the price war is achieving a limit. The other thing is the recruitment of new staff quickly and simply giving them training so that they can be competitive in market.
For English Airways it's very important to keep up their brand image in the market, the relationship with their employees are in a very bad shape due to continuous attack and also scheduled lack of stability and trust of the employee's. As the airlines industry is shrinking there must be a new technology and change in the way of operation if the business needs to survive in the market it needs to give attention to new ideas and new marketing methods to preserve its market and stay forward.
There is predication by many analyst that there surely is great potential in the market for growth and views a great opportunity in advance which is based on the industry.
The market situation where there is market meltdown is very favourable as the companies are more mindful on price and also on the folks.
Also the other advantage is the reduced amount of the expense of the aircrafts, which includes eventually reduced the operating cost of all airlines.
There are also new marketplaces which are untapped till now and which have a great potential as business prospective.
Threats to the Company:
The first menace is the tremendous competition from other cheap airlines which are offering a similar service and at cheaper rate.
Due to saturated market there is always lack of new options as there are limited resources.
Due to various security dangers the companies have to decrease their business travel in times of market meltdown and also its very frustrating process to get the additional security organized or for arrange for new plane tickets.
Due to competition the business must spend more on the marketing and branding, which is very costly and also which could affect the company's success in future.
Key Strategic Issues from Pestle Research:
The global economic issue in the time of credit crunch which the airlines face credited to any circumstances (like volcanic ash concern, union attack or could be staff retention).
The other likelihood is the bigger regulatory requirements from the federal government like legalities or the current laws of wide open sky plan.
The technology factors like increased used of internet by the client (eg. Ticket booking or for online check in etc. ).
Changing customer demand or changing business environment for flight industry.
Companies Current Position on the market:
British airway currently is in healthy position compared to its peer's competitors and it is position as, one of the prime company in market. It has recently joined hands numerous leading airlines and has recently segmented its market. It's UK biggest international journey operators and it is also one of the major international and domestic freight, mail and ancillary service provider. It has brought, among the greatest players in the airline industry and has a great operational strength. It's a FTSE listed entity on the London stock exchange.
As compared to Uk Airways, Easy Jet is UK most cheapest or low-cost airlines which has a huge presence across Europe and in UK. It, has placed itself in such a way that it experienced provided immense versatility to people in terms of price. It offers increase its Western european market show from mere 6% to 10% in 3-4 years and is often now as budgeted airlines. Its one of the most affordable airlines, which has created a great impression in the heads of people and could be positioned among the leading airlines in UK and European countries. It, is also one of the value exchanged on the London STOCK MARKET.
Vision of Uk Airways:
"The companies' eyesight is to be the planet most responsible air travel and also to be the world's leading global airlines". (Source www. britishairways. com/ba_reports)
Mission is to provide good customer relationships and service
Send none of your UK misuse to landfill by 2010.
Reduce our average sound per aeroplanes by 15% by 2015
Make it easier for customer to carbon offset their journeys
Support a whole selection of community and conservation assignments across the world.
(Source: www. britishairwaysplc. com)
Mission Statement of Easy Plane:
"To supply our customers with safe, good value, point-to-point air services. To impact and to provide a regular and reliable product and fares attractive to leisure and business marketplaces on a variety of Western european routes. To do this will develop our people and build lasting relationship". (Source: www. easyjet. com)
"The goal of easy plane is to be one of the biggest players over the industry as budgeted airlines and provide the best service to customer. It also plans to be always a leading environmentally effective and responsible airline, striving to be reliable I mid-air, efficient on the ground and also to lead just how in shaping a greener future for aviation". (Source: commercial. easyjet. com/en/archieve)
Company Strategy towards their Goals:
The very first thing that Uk airways designed is by growing their operations and making commercial responsibility a visible part with their business.
By buying efficient and adaptable new airplane even in monetary downturn time.
By reducing the manpower on the entire terminal will help the company to lessen the cost.
By introducing new product such as home based business class seat on long-haul flights and restyled first cabin.
Delivering high grade or one of the best customer services at every touch point.
It also centers to on mileage business and boosts its gain doing alternative party engineering, I trip sales and also new web business through e-ticketing and also providing great co-operate deals for regular holidaymakers.
It also blueprints to really have the most occurrence in key global places and also build the strongest position in market of UK and across the globe.
Corporate Strategy of Easy Aircraft to attain its Goals:
Easy Jet among the leaders in low cost airline its strategy is to enhancing its margin by three ways focus on yield, ancillaries and costs.
Its main aim is to provide low cost t its customer by handling its cost and concentrating on the center areas like trip frequency, up to speed food equipment, offering personalized plans to the client.
The other thing that company is centering to achieve its goal is enhancing the infrastructure, providing appropriate information to its customer's and also providing key supports to its team members by giving them staff efficiency programme which has been implemented.
Increased focus on the price by constructively engaging the government authorities and regulators that placed them.
Segmentation of market for English Airways and East Plane:
Market segmentation of Uk Airways:
Due to increased competition to BA in terms of price looked after varies from course by route scheduled to open sky insurance plan. It targets two main facet of current market 1). The short haul market and 2) long-haul market.
Short haul Market: In this type f brief haul market the company focuses on individuals who opt to take a shorter routes within the nation called as local flights, which lots of the UK companies are working. It has recently operating directly into premium class travels, where its already grown up and offers and excellent customer support by making use of their marketing skills and technology. Its also looking beyond, its segmentation and also hoping to focus not only on long-haul plane tickets but also on shorter distance equipment and lighting due to immense competition from some greater players who are powered by the similar routes.
Long-haul Market: As, we now that the BA is one of the very most reputed and well known name in air travel industry and has an extremely big market show in operating in long distance flight, its prime concentrate of business segmentation is checking out new destination and new routes so that it can target more and more people throughout the world and position itself so that this can maintain in market in any condition and be at the very top. It, has also new plans to enter in to low priced air ticketing by getting into a price warfare with its competitors on a regular basis to grab the market share and hold on to its customers
Market Section of Easy Jet:
The vast business of Easy Plane is at t and from the UK and it focuses on at the business and leisure consumers. The mark people are those ones which can be keen on saving money and time. In addition, it provides several other packages like hotel accommodation, ca parking, choice of plane for frequent holidaymakers and its attempts to focus on more customer bottom by offering additional services. Easy Aircraft is centering or targeting commercial business travellers and also focusing on consumers through websites and also offering them last minutes deals. Additionally it is trying to target small income groups and also the places that have a tiny demographic location and which could help the business to garner more customers.
Marketing Combine for Uk Airways and Easy Aircraft:
Marketing Mix are the related to four components of marketing such as Product, Price, place, Promotion, it is dependant on four assumptions of marketing for just about any organisation, in this essay we would be talking about about the four models which are used by two companies in several way like for BA and Easy Jet.
(Source:http://www. startuphustle. com/2008/10/21/push-vs-pull-marketing-and-your-marketing-mix/)
Product: Product is the largest thing for an organization, as every company is completely dependence on the product; BA showcases its product by firmly taking a customer give food to back on their products offered and also innovating new product over the airports. They have got a big variety of products t be offered to the client.
Easy Aircraft has different way on putting its brand; it develops the products relating to customer needs and has different way of showing its brand image.
Price: Price is the most crucial factor in the flight industry as every company is closely dependence on the purchase price as the main element drivers of the business is price. The company uses this prices strategy to get increasingly more market share and to garner more customers throughout the world. BA provides various bargains which, derive from its pricing which is a tool which can be used to create new earnings for the business.
The whole concept of Easy Jet is to provide low budgeted airlines and also to provide its customers with the cheap travel and convenience. As, a minimal budgeted airlines the complete business of Easy Jet or its strategy is developed on pricing factor as well as the marketing combine is also the depended on the marketing division.
Promotion: Advertising go hand at hand as every company needs to promote its brand to enter the market. Due, to huge competition the firms develop different marketing strategies like spending on the advertising, through internet and other ways of communication. BA uses its promotional strategies like introducing of text and mobile services for the business enterprise customers. Modernise the plane fleet and provide new services.
Easy Jet also uses the same ways of promote its brand like advertising and also using technology to promote its brand.
Place: Place is the one of the number one priory for the airlines as no air travel can operate with out a proper location. For BA as it's operates from UK and gets the operational base in UK to carry out day to day activities. As the firms operate through various international airports to carry out the business enterprise activity like the warehouses for carrier goal and also using the space for the aircraft servicing. They have to develop the infrastructure around the place which they take up and have to get updated about the place.
As a result of the exterior and internal analysis number of tactical option were proposed, we conclude that the merged strategy to improve the quality service was considered most suits. Because of current scenario of the air travel industry we've chosen to consolidate the existing position of both air lines as both of them have their own marketing and tactical know-how in their various segments. Due to scope and range of operation and concentrate on passenger tariff we would recommend further proper analysis to apply level strategy.
Due to lack of major research and limited extra to company's information there may be limitations in finding and suggesting strategy.
Both the firms need to work on their different strategies to maintain its lead on the market and also we also suggest if the proper intents are used would lead to the success of both the companies.
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