Business Environment

BUSINESS ENVIRONMENT

2006 Executive Summary

Transportation becomes a significant part of business that has a great influence over other economic and business practices . Any changes of price , demands , and technology are therefore influence businesses significantly in relating environments . In the modern era , people prefer taking air travelling to using land transportation when talking about time-usage and effectiveness . As results , the business of air transportation continues growing and spawning new entrants that target specific market segments

Currently , especially after the 9 /11 tragedy , the issue of low cost carriers are

becoming dominant due to its less impact by the downtrend in air travelling . Therefore , the provision of low airfares becomes an interesting of discussion among economists and business analysts in addition to the technological advancement that contributes to the decreasing cost of transportation

Concerning to the issues in air travelling , this presents an analysis of connections present between the airline industry , the low cost carriers , technological advancements and security safety concerns , and many other issues . The object of this study is two airlines that play in different market segments and are completely different in size they are British Airways and EasyJet Airline Company

While British Airways is known as the legacy airline for decades EasyJet Airline is considered as a new airline that act similarly to Southwest Airlines in United States in which EasyJet becomes one of the well-known low-cost carriers that currently operate throughout the United Kingdom and mainland Europe . Later in this , there will be suggestions for both carriers in to improve current positive performance and to take benefits of the ever-changing trends in worldwide air travelling

Business Environment

I . Introduction

The 9 /11 tragedy that happened almost five years ago becomes a hallmark in air travelling industry since the incidence has discouraged many air traveller to take a trip by airplanes

At present , although it is still early in the recovery and certainly high fuel prices and another terrorist attack could cause another setback air travel industry is facing unexpected demand in deploying small airplanes such as Boeing 737s or Airbus A320s

This appetite for small airplanes underscores the strength of the discount-airline or low cost carriers like one cast successfully by Southwest Airlines in United States . In Europe , EasyJet is one of the well-known low-cost carriers that currently operate throughout the United Kingdom and mainland Europe . Meanwhile , British Airways represents an old-fashioned airline that continues struggling in the changing trend of air travelling industry

II . Strategic Group Analysis of British Airways and EasyJet Airline Company

II .1 Extent of Product or Service Diversity

As a new entrant in air travelling , Easyjet Airline has a simple mission to provide customers with safe , good value , point-to-point air services [by offering] a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes [through developing of the company 's] people and [instituting durable] relationships with [ .] suppliers (`EasyJet Mission . The statement reveals that EasyJet Airline still offers a...