• EasyJet Pestle Analysis 2018
• Swot Analysis of EasyJet 2018

Introduction

The UK aviation industry market is oligopolistic with both legacy airline carriers like British Airways, Virgin Atlantic, and Air France operating at the higher end of the market and low-end airline carriers like Ryan Air and Norwegian Air operating at the lowest end of the market. One of the biggest issues that is changing the nature of competition in the UK airline industry is the introduction of no-frills packages by legacy premium carriers such as British Airways as they attempt to reposition themselves to curtail the challenges of competing with lost cost carriers. This has made the airline industry less attractive as competitive behaviour drives air travel towards commoditization and low profit margins.

Using Michael Porter’s five forces, we analyse EasyJet showing major points at which the airline is mostly affected by the competition while realizing major opportunities and threats.

3.1 Bargaining power of buyers

EasyJet customers have high bargaining power due to the availability of many other airline carriers in UK. Airline carriers like Norwegian air, Ryan air, British Airways etc., provide similar services giving customers a variety of choices to choose from thus the high bargaining power. High buyer power is whats forcing legacy carriers including British Airways, Lufthansa, KLM etc, to launch no frills travel packages with no checked baggage or inflight meals and reduced legroom in order to compete for buyers inundated with many low cost options (Zumbach 2017; Morris 2018).

3.2 Bargaining power of suppliers

Suppliers of airline carriers are mainly airplane manufactures like Boeing and Airbus, fuel suppliers, onboard meals suppliers, among others. They have a high bargaining power because the industry is consolidated with a few big, and well established suppliers that are highly profitable in an industry that requires huge capital investment. Like