Easy jet is one of the most surprising companies in the last decades. It's business model based on cheap price for a service that is supposed to be expensive made its success and is the base of the "Easy" strategy. Created in 1995 by Stelios Haji-loannou, Easy Jet is now one of the most profitable airline companies in the world. Its market shares are increasing and represent now 0.6 percent of the global market. The company is now the fourth biggest company in the European market with now 2 percent of market share. Easy Jet has three source of revenue, the flight ticket, which is the first source of income, then come the options that a customers can choose and to finish the goods sold during the flight. Easy Jet now has to find new market, and India can be a potential target.
India is one of most growing countries. 85 percent of the world population will be living in the emerging markets, the condition of making business over there is way different from the way of doing business in developed countries.
In this essay we will study the U.K airline industry and the European market industry in the first part, and then the Indian market and the opportunities for easy jet in India in a second part. We will conclude by making some market recommendations.
[...] The low cost companies were the last entrants to change the market by increasing competition. The numbers of airports are increasing and the technological and security standards are also high. There is a huge potential of growth in Eastern Europe, which recently integrated the European Union. Then the strong relation of Europe with the north of Africa creates new perspectives. We have seen that the U.K and European environment are highly competitive. In the next decade of the world population will be living in emerging countries. [...]
[...] The legal environment in Europe is hard. Recently, Ryanair had to close its line because of the new regulations by France. Easy Jet needs to diversify. The Indian market presents a lot of advantages, the competition is medium, and the Airlines Industry is growing very fast. The Indian customer is different from the British or European customers. Easy Jet will have to adopt a multi-domestic strategy with specific products for the Indian market. Though India is suffering from many issues the global attractiveness on the market is extremely high. [...]
[...] The Indian education system is getting better every year with world-class universities, in people graduated in India. The main issue in India is the unequal development of the population, when the middle and upper class can access good living standards a large portion of the population is living below the poverty level. Poverty in India is represented with more than 450 million living with less than 1 dollar a day. - The Technology factor Technology investment is contributing highly to the development of Indian. [...]
[...] HILL Charles, International Business competing in the Global marketplace, McGraw-Hill International Edition P.91 • W. L. HILL Charles, International Business competing in the Global marketplace, McGraw-Hill International Edition • Constitution of India, page 330, EIGHTH SCHEDULE, Articles 344 and 351 • Geert Hofstede, Robert McCrae, Personality and Culture Revisited: Linking Traits and Dimensions of Culture • Geert Hofstede, Cultural dimensions of China, http://www.geert- hofstede.com/hofstede_china.shtml • Geert Hofstede, Cultural dimensions of France, http://www.geert- hofstede.com/hofstede_france.shtml • PESTEL analysis of the macro-environment, Oxford university Press, http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_1 2.htm • Zhao Huanxin, China to improve copyright protection, China Daily, http://www.chinadaily.com.cn/english/doc/2006- 02/16/content_520675.htm • Franklin R. [...]
[...] After the decolonisation India has split into three parts, Bangladesh, Pakistan and India. The main reason for this is the differences in religion between Hindus and Muslims. Pakistan and India has been three times in war, and both of them now are nuclear powers. - The economical factor As said before the Indians GDP is growing fast, it is observed that the GDP per person has increased from 447$ in 2000 to 1061$ in 2008, and is expected to reach 1800 $ in 2015, according to the IMF forecast. [...]
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