Inter-nation marketing: Easy-jet in India

Résumé du document

EasyJet is one of the most surprising companies that established in the last decade. Its business model based on reasonable price for a service that is supposed to be expensive made its success and is the base of the "Easy" strategy. Founded in 1995 by Stelios Haji-loannou, EasyJet is now one of the most profitable airline companies in the world. Its market shares are increasing and now represent 0.6 percent of the global market. The company is now the fourth biggest company in the European market with 2 percent of market shares. EasyJet has three source of revenue, the flight ticket, which is the first source of income, then, selling goods during the flight. Now, EasyJet has to find new market, and India can be a potential target.

India is one of the most growing countries. 85 percent of the world population will be living in the emerging markets; the condition of making business over there is different from the way of doing business in developed countries.

In this essay we will study the U.K airline industry and the European industry in the first part, and then the Indian market and the opportunities for EasyJet in India in the second part. To conclude, we will make some market recommendations.

Extraits

[...] The caste system still exist, it define the place of people in the society, this system have an impact on job, consumption India is composed of different ethic groups, different languages, and different religions. These differences have created trouble by the past. The Indian education system is getting better and better each years, with world-class universities, in people graduated in India. The main issue in Indian is the unequal development of the population, while the middle and upper class can access to good living standards, a large part of the population is living below the poverty level. [...]

[...] The aircraft constructors, even if they are few, the competition is important, which reduce prices. To finish, the airport, they usually fight hard in order to attract more companies. Some even give subventions. - The power of buyers Medium: The switching cost are low, but in a market such as India, customers are numerous, as we said before the main driver of the consumers choice is the price, and Easy Jet is perfectly adapted to this market segment. The size of the Indian market reduces the power of the buyers. [...]

[...] The recent crisis affected the different country members in different ways and illustrates the inequality of development. The Airlines industry is a huge industry. The average annual growth before the crisis was 7.5 percent a year. Countries use to have a national company. These companies have been privatized and now 3 main actors are controlling 60 percent of the market: Air France, British Airways and Lufthansa. The competition is intense and the competitors are numerous. The low cost companies were the last entrants and change the market by increasing competition. [...]

[...] The legal environment in Europe is hard guess. Recently, Ryanair had to close its lines be cause of the French new regulations. Easy Jet needs to diversify. The Indian market presents a lot of advantages, the competition is medium, and the Airlines Industry is growing very fast. The Indian customer is different from the British or European customers. Easy Jet will have to adopt a multi-domestic strategy with specific products for the Indian market. India is suffering of many issues, but the global attractiveness on the market is extremely important. [...]

[...] While China invest its work force in the good production. India invested in the service industry. Indian engineers are well educated. In 2009 thirty percent of the new graduate were engineer, so 200.000 people. Indian companies such as TATA are now important actors in the technological industry. Even if India is investing in its infrastructures, it still represents a serious issue. A lot of western companies such as Microsoft invest in India. Indian engineers can do the same job does American engineer for 3 times less money. [...]