In 2016, over 8,349 EasyJet flights were either cancelled, or delayed over three hours or diverted due to severe disruption by external macro factors such as strikes, severe weather, terrorist attacks, and other airport issues. The total impact of these external events on profit was estimated at £150million (Annual Report 2016). PESTLE is used in strategy to analyse the macro environment and identify how external events in the political, economic, social, technological, environmental and legal environments might impact individual organisations within an industry. Managers use the PESTLE tool as an aid when studying key drivers of change in the external environment. These key drivers of change constitute opportunities and threats for firms and PESTLE helps identify them overcome. However, PESTLE is only a starting point since other frameworks such as SWOT and Porters Five Forces have to be used in conjunction to help firms like EasyJet utilise internal core competencies (strengths) so as to take advantage of opportunities while neutralising threats in its industry.
EasyJet Strategy Case Study
Key Learning Outcomes
- Understand the broad macro-environment of Easyjet and the UK airline industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
- Use our swot analysis example to gain an overall understanding of Easyjet's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
- To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.
EasyJet is a British airline carrier that operates on a low cost model, based at London Luton airport. It is the largest airline carrier in the UK by passenger numbers carried. In 2016, it carried more than 73 million passengers, making it the second biggest airline carrier in Europe by passenger numbers carried, behind Ryanair (Annual Report 2016). Latest revenues for the year ending 30 September 2016 were £4,669 million on operating profits of £495 million (Annual Report 2016).
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