EasyJet, for instance, operates up to three times the routes than Ryanair, despite them having almost the same fleet and full time employee size.
Multiple tools and concepts for allocating resources have been developed, and while each of these techniques is imperfect, they are immensely helpful. It is clear that EasyJet already recognizes advantage.
The expansion in airline passenger numbers is already evident. Half of UK start-ups fail within five years. International Business 6th Ed. However, there are even more urgent issues that could be addressed by EasyJet as well as Ryanair to bolster their competitiveness.
EasyJets low debt relative to Ryanair for instance, means that it has opportunities to increase its debt, to invest in revenue-generating assets, and thus better capitalize on the emergent opportunities in the industry. Statistics for Management and Economics, Abbreviated Edition. Further, performance measures will be set.
Unfortunately, EasyJets relatively poor liquidity and profitability ratios may haunt it. However, the backward-looking nature of incremental budgeting means that there is a low emphasis on future operational issues and needs. Essay This essay has been submitted by a student. Infor instance, the company launched three more routes from the UK to Greece, Croatia and Italy, besides the earlier forays into Tunisia, Gibraltar, Bristol and Newcastle.
Oftentimes, EasyJet will be forced to make budgets in uncertain circumstances, in which case, it will have to use rolling budgets, contingency budgets, flexible budgets, and activity-based budgets, among others Northern Ireland Assembly, Retrieved Jan 10,from https: Strategic Management and Business Policy: Other budgeting techniques that could be used by the company include flexed budgeting, priority-based budgeting, decision-conferencing, planning programming budgeting system, performance-based budgeting, participatory budgeting, and resource-restricted budgeting.
By this technique, the firms current performance or the present periods accounting year is assumed to be the base, after which incremental costs are added to the new period of budgeting.
Unlike the incremental approach, zero-based budgeting assumes that all costs have a zero base because no expenditures are brought forward to the current periods, which necessitates that everything included in the budget for every period must be justified.
The reduction in oil prices, and the expectation that the prices will remain low should cut the cost of travel and bolster the passenger volume, which should in turn have a positive impact on the financial performance of both EasyJet and Ryanair.
This is not an example of the work written by our professional essay writers. The traditional budgeting technique that could be employed by EasyJet and Ryanair is incremental budgeting. Incremental budgeting is easily understandable, cheap, allows the companys management to focus on other strategic issues, and is particularly best suited for projects whose outputs are difficult to quantify, such as EasyJets new investments.
Ryanair has also been increasing its routes, but it has been markedly less aggressive MarketLine, a; MarketLine, b.
Request the removal of this essay People also read. EasyJet and Ryanair are two of the leading players in this industry, and thus the positive outlook for the industry should translate into faster growth, increased profitability, and potentially better solvency.
Many airlines in Europe are hampered by the lack of geographical diversification, and while EasyJet is easily one of the most diversified airlines in terms of destinations, possible borrowing to add on the existing routes by acquiring or leasing more aircraft should enhance its competitiveness in the face of the expected expansion of the industry.
In fact, the success of any airline across the world is dependent on their ability to deal with severe changes in demand, cost, and other adverse changes in the operational environment.
Retrieved Jan 11,from http: In fact, the budgeting problem is not unique to these two companies. The airline industry struggles with mounting costs due to regulations and airport fees, and for low cost carriers, the focus on passenger volumes means that they incur more costs compared to premium carriers.
He proposed project will see Easy Sleep expand its operations across other airports in the UK, to capitalize on the increasing potential for the air travel and tourism industry in the country BDO, Making Air Travel Easy and Affordable.
EasyJet will have to consider all expenses and alternative ways of reducing costs, before deciding on the best option for the company.Competitive Advantage of EasyJet and Ryanair. Published: Back to list. words. This essay has been submitted by a student.
This is not an example of the work written by our professional essay writers. Competitive advantage. The UK/European tourism and airline industries are expected to expand, mainly in response to. Easy jet which is having Mission statement as to provide our customers the safe journey,good worth,point to point air service.
We will write a custom essay sample on Strategic Analysis of Easyjet specifically for you for only $ • The committed airport slots at main airports are a significant quality and another form of competitive advantage for easyJet.
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Impacts of Tourism and Travel, Transport and Logistics EasyJet TABLE OF CONTENTS Introduction 3 Background 3 External Impacts 5 Political and Legal impacts 5 Economical impacts 6 Sociocultural impacts 7 Technological impacts 8 Environmental impacts 9 Other impacts 10 Staffing and recruiting 10 Branding 11 Competitors and competitive advantage.
The main objective is to study EasyJet's successful e-marketing campaigns. differentiation strategy and market segmentation strategy. But in EasyJet's case, only two basic of competitive advantage was used: cost leadership and differentiation.
Marketing Essay Writing Service Essays More Marketing Essays. We can help with your essay. Competitive Advantage Essay - Corporate Strategy "Sources of competitive advantage rarely yield added value that can be sustained over time." The following essay is going to attempt to assess the above proposition and try to find if it is possible to add value continually over a period of time.
Easy Jets Competitive Advantage Easy Jet used.Download