The paper “ Easyjet Airline - Environmental Analysis of the UK and European Airline Market" is a great example of a case study on marketing. There seems to be a number of factors that affect the daily operations of firms in every industry. These factors are external while others are internal and the firm will, therefore, need to adjust its current strategies from time to time so as to make the accommodation of both factors (Budhwar & Varma 2010). The European and UK passenger airline market is usually made up of native and foreign firms.
For example in the UK the native firms that operate there are British Airways, EasyJet and Ryan air just to mention a few and the foreign firms that also operate in the UK include but are not limited to emirates, Kenya airways, and delta lines. In the European markets, there are also foreign airlines that operate there and they include Lauda air and Austrian airlines. These airlines play a great role in moving passengers from one destination to another. Though some of the airlines are from foreign countries they tend to occupy a larger market share (Stephen 2004). In this paper, I will focus on conducting an environmental analysis of both the European and UK airline markets.
This will be closely followed by the competitive analysis of the two markets that is the UK and European market (Stephen 2004). I will further discuss the strategic and competitive position of EasyJet in Europe and in the UK and lastly, offer a conclusion. Environmental analysisIn conducting the environmental analysis of the two airline markets I will use the PEST analysis. It will take into account the economic, political, technological and social environment (Cento 2008).
This report will further discuss how the various environmental factors will have an effect on the operations of the airline in each of the countries. Environmental analysis UK airline PoliticalThe political firmness of the UK suffered a great blow by the terrorist bombings. This has in a way led to decreased revenues in the airline industry. Other passengers who preferred personal air travel also shunned away and at the same time airlines beefed up their efforts to enhance flight and airport security and this in a way reduced their profitability levels (Cento 2008).
There are also other political factors that tend to have a negative impact on the airlines and they include the price regulations that have been outlined by the government, union requirements as well as wage legislations. EconomicIt can be noted that the economic factors in the UK have been for the benefit of the airline industry. The pound has attained more strength against the other currencies and this has been to the advantage of the airline industry (Holloway 2003).
Also, the fluctuation and inflationary tendencies of the dollar have also in a way been an added advantage in the airline industry. Nevertheless, the slowdown that is being experienced in the domestic economic growth seems to have a negative impact on the airline industry since as it accelerates the power of the people to make use of air travel is declining. Also, the latest global meltdown has also affected the airline industry a great deal. And as a result, most players in the industry reported massive losses. It was very severe that even some of the airlines had to lay off some of their employees.
The other economic factor that has had a lot of impact on the airline industry in the UK is the ever increasing cost of fuel. This has really had an impact on the profitability levels of the airline (Holloway 2003).