easyJet SWOT Analysis Sample UK

Parent Company: easyJet plc

Category: International

Sector: Airlines

Tagline/ Slogan: Come on, let’s fly!

USP: One of the largest low-cost carrier in Europe

Founded: 1987

Headquaters: Luton, United Kingdom

easyJet is a British low-cost carrier airline headquartered at London Luton Airport. It operates domestic and international scheduled services on over 600 routes in more than 30 countries. EasyJet plc is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

As of September 2018, easyJet carried over 86 million passengers, making it the second-largest airline in Europe by number of passengers carried, behind Ryanair.

easyJet has seen rapid expansion since its establishment in 1995, having grown through a combination of mergers and acquisitions, as well as base and route expansions. The airline has gone from operating a single aircraft on a single route to becoming one of the largest airlines in Europe.

Now, lets examine the strengths, weakness, opportunities and threats of this company by conducting a SWOT analysis:

easyJet Strengths

1. Strong brand presence: easyJet has a strong brand presence in Europe with a high level of brand awareness and recognition. The company ranks second in terms of brand value among European airlines, behind only Lufthansa .
2. Extensive flight network: easyJet operates an extensive flight network, covering over 600 routes across more than 30 countries. This gives the airline a strong competitive advantage over its rivals.
3. Low-cost business model: easyJet’s low-cost business model has allowed it to be one of the most successful airlines in Europe. The company has a very efficient operations and has been able to keep its costs low, which has resulted in higher profits.
4. Strong financial position: easyJet is in a strong financial position with a healthy balance sheet and good profitability. The company has been profitable for the last 10 years and has a strong cash position.
5. First among the LCCs to introduce e-tailing: easyJet was the first low-cost carrier in Europe to introduce e-tailing, which allows passengers to book and pay for their tickets online. This has resulted in lower costs and a more efficient booking process.

easyJet Weaknesses

1. Dependence on UK market: easyJet is heavily dependent on the UK market, which contributes around 60% of its revenues. This makes the airline vulnerable to economic and political conditions in the UK.
2. High employee turnover: easyJet has a high employee turnover, which is a result of the low wages paid by the company. This has led to difficulties in retaining experienced staff and has resulted in higher training costs.
3. Lack of first-class and business-class products: easyJet does not offer first-class or business-class products, which limits its appeal to high-end customers.
4. Not having a frequent flier program can be costly: easyJet does not have a frequent flier program, which means that it misses out on the revenue from selling miles to partners.
5. Very touchy about any extra taxes or fees: easyJet is very touchy about any extra taxes or fees, which has led to disagreements with airports and governments.

easyJet Opportunities

1. Growth in tourism: easyJet stands to benefit from the growth in tourism, as more people are expected to travel in the coming years. This will result in higher demand for air travel and provide opportunities for the airline to expand its operations.
2. Emerging markets: easyJet has been expanding its operations into emerging markets such as Eastern Europe and Africa. These markets offer growth opportunities for the airline as they are expected to experience strong economic growth in the future.
3. Partnerships: easyJet has formed partnerships with other airlines and companies, which has helped it to expand its reach and grow its business. The company has codeshare agreements with British Airways, Virgin  Atlantic, and Emirates, among others.
4. New fleet can be leased out during times when travel is slow: easyJet has a young and modern fleet of aircraft, which can be leased out during times when demand for air travel is low. This will help the company to generate revenue and offset some of its fixed costs.
5. The EasyJet academy can be a reliable source of supplemental income:  The EasyJet academy, which trains pilots for the airline, can be a reliable source of supplemental income. This will help to offset some of the training costs associated with new hires.

easyJet Threats

1. Increased competition: easyJet faces increased competition from other airlines, both in its home market and abroad. This includes low-cost carriers such as Ryanair and Wizz Air, as well as full-service carriers such as British Airways and Lufthansa.
2. Rising fuel prices: easyJet is exposed to the risk of rising fuel prices, as fuel is one of the airline’s major operating costs. This could erode the company’s profitability and put pressure on its margins.
3. Fluctuations in currency exchange rates: easyJet is also exposed to the risk of fluctuations in currency exchange rates, as the airline generates a significant portion of its revenues in foreign currencies. This could lead to fluctuations in the company’s earnings.
4. Govt policies and strict aviation regulations: easyJet is subject to government policies and regulations, which can impact the airline’s operations.
5. The LCC segment has high bargaining power for customers: The low-cost carrier (LCC) segment has high bargaining power for customers, as there is a large number of LCCs in the market. This gives customers a wide range of choices and makes it easy to switch airlines.

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