project report for owen muzi, greenwich university ourseworks website , project reports

1. COURSE: electronic commerce
TITLE: ―strategic evaluation consultation document for easy Jet‖
NAME: Owen Muzi m.
STUDENT NO.: BSC 13010
DATE: 5th
April, 2013
CENTRE: ZCAS

2. Owen Muzi, Student No. BSC13010, electronic commerce Page 2
Table of contents
Title page…………………………………………………………………………………3
Abstraction………………………………………………………………………………...4
Introduction………………………………………………………………………………..5
Strategic evaluation – situation analysis………………………………………………….5
Electronic Marketing strategy……………………………………………………………...7
Legal and ethical issues……………………………………………………………………9
Conclusion…………………………………………………………………………………9
Reference…………………………………………………………………………………..11

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―STRATEGIC EVALUATION CONSULTATION
DOCUMENT FOR EASY JET‖

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Abstraction
This final report shows the benefits and impacts of electronic commerce on easy Jet. The case study
shows clearly that Easy Jet founder Stelios Haji-Loannou reputedly used to ‗hate the Internet‘ but this is
no longer the case now.

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Introduction
Easy Jet is one firm that has successfully followed the low-price strategy, founded by Stelios Haji-
Ioannou, a graduate of London Business School, in 1995 with £5 million borrowed from his father, a
Greek shipping tycoon. Haji-loannou hated the internet; he thought it was something for nerds. This is no
longer the case. ―Easy Jet plc is a low-cost airline operator based in the UK and provides air passenger,
transportation services and fleet management services in Europe.
The company along with its subsidiaries operates the fourth largest short-haul operations in Europe.
It is also involved in aircraft trading and leasing businesses. Easy Jet operates with a total fleet of 204
aircraft from 19 bases and offers services in 547 routes to serve various destinations in 30 countries. The
company Collaborates with companies such as Gate Gourmet, for in-flight merchandise; Europcar, for car
rental services and Hotelopia and Laterooms, for rooms. Easy Jet plc is headquartered in London,
England, UK.
STRATEGIC EVALUATION-SITUATION ANALYSIS
Easy Jet has successfully followed the low price strategy. This company has transformed the European air
travel market and now Easy Jet makes £280 million profit since it was floated on the stock market in
2000.
One of the strength of Easy Jet is a low price strategy. Its marketing strategy at launch was to make
―flying as affordable as a pair of jeans‖. Today Easy Jet operates approximately in 285 routes between 72
airports in 19 countries and carrying over 33 million passengers a year.
The company has a profit margin of £1.50 per customer. So in order to keep running costs low, the
company came up with a single access channel of the telephone, but to lower the cost further a web site
was introduced. In April 1998 Easy Jet used its web site as a low cost access channels. The web site is
very significant to the company because the site is used for branding the company, sell of tickets as being
focused on B2C electronic commerce. The web site is also used as a public relations platform. Anyone
who wishes to know any changes to the company are referred to the web site. This saves the company
employing a specialist public relations officer.
The advantage of using the web site is that it uses hyperlinks to spread messages. This means that
electronic marketing can be tracked, the data can be analysed and this can then feed back into the
planning to optimize the marketing strategy. The internet allows the tracking of tactic on its own, and then
analysis should allow the consideration of how these tactics work together this helps in identifying
competitors, analyse the needs of the customers and determine how else customers might fulfill those
needs.
Easy Jet has been able to acquire other rival airliners. In March 1998, easy jet purchased a 40% stake in
Swiss charter. The airline was renamed Easy Jet Switzerland. This was Easy Jet‘s first new outside the
United Kingdom. Easy Jet has also purchased GO and the acquisition of GO almost doubled the number
of Boeing 737-300 aircraft at the time of acquisition.

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Easy Jet financial performance
Year ended Passengers flown[nb 1] Load factor Turnover (£m) Profit/loss before tax (£m)
Net profit/loss (£m) Basic EPS (p)
30 September 2012 58,399,840 88.7% 3,854 317 255 62.5
30 September 2011 54,509,271 87.3% 3,452 248 225 52.5
30 September 2010 48,754,366 87.0% 2,973.1 154.0 121.3 28.4
30 September 2009 45,164,279 85.5% 2,666.8 54.7 71.2 16.9
30 September 2008 43,659,478 84.1% 2,362.8 110.2 83.2 19.8
30 September 2007 37,230,079 83.7% 1,797.2 201.9 152.3 36.62
30 September 2006 32,953,287 84.8% 1,619.7 129.2 94.1 23.18
30 September 2005 29,557,640 85.2% 1,314.4 67.9 42.6 10.68
30 September 2004 24,343,649 84.5% 1,091.0 62.2 41.1 10.34
30 September 2003 20,332,973 84.1% 931.8 51.5 32.4 8.24
30 September 2002 11,350,350 84.8% 551.8 71.6 49.0 14.61
30 September 2001 7,115,147 83.03% 356.9 40.1 37.9 15.2
30 September 2000 5,600,000 263.7 22.1 22.1 11.9
‗Table illustrating Easy Jet financial performance‘ (Easy Jet 2012 Annual Report [1]:p.11).
In common with most other low-cost carriers, Easy Jet has a philosophy of operating just one aircraft
type. Initially it used Boeing 737 aircraft exclusively, but in October 2002 it ordered 120 Airbus A319
aircraft, plus 120 options, with CFM56-5B engines. Since then, the Boeings have been phased out, and all
orders have been from the Airbus A320 family. See the table below:

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Fleet history
AircraftIntroduced Retired Seating Notes
Airbus A319-100 2004 — 156 In service
Airbus A320-200 2008 — 180 In service
Airbus A321-200 2008 2010 220 Inherited from GB Airways
Boeing 737-3001996 2007 148/9 Replaced by A319s
Boeing 737-7002000 2011 149 Replaced by A319s and A320s
‗Table illustrating Fleet history‘ (Easy Jet 2012 Annual Report [1]:p.22).
Easy Jet like Ryanair its competitor, borrows its business mode from United States carrier southwest
Airline s. Both airline s have adapted this model for the European market through further cost-cutting
measures such as not selling connecting flights or providing complimentary snacks on board. Easy Jet and
Ryanair both fly a young fleet of aircraft compared to southwest.
While the airline s share a common business idea, Easy Jet‘s strategy differs from Ryanair‘s in a number
of ways. For example Easy Jet has used a number of slogans since its establishment including: ―the web‘s
favourite Airline‖ (a reflection on the airline‘s cheeky and cheerful image), ―come on, let‘s fly ―and ―to
fly, to save‖ (a cheeky take on British Airways‘ slogan ―to fly, to serve‖. Its current slogan is
―(something) by Easy Jet‖ with ―Europe by Easy Jet‖ and ―business by Easy Jet‖ being the most widely
used.
The significant difference between Easy Jet and Ryanair lies in their operating routes and airports. Easy
Jet flies mainly to primary airports in key European cities while Ryanair frequently flies to secondary
airports to further reduce costs.
Easy Jet also gives passengers the option to transfer on to an earlier flight without charge on the return
sector of their booking if there are seats available.
Easy Jet has also come under criticism: in Germany Easy Jet was criticised for not observing European
Union law on compensation in cases of denied boarding, delays, or cancellation. In case of cancellation,
passengers should be reimbursed within one week. (Regulation 261/2004). But easy jet did not always
refund in a timely fashion.
Easy Jet also was criticised by Advertising Standards Authority for a press campaign that was misleading
about environment claims that its aircraft made 22% fewer emissions than rival airline s.
Disability discrimination policies were the other criticised area.

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ELECTRONIC MARKETING STRATEGY
Electronic marketing refers specifically to marketing using the internet.
Easy Jet‘s early marketing strategy was initially based on ‗making flying as affordable as a pair of jeans‘
and urged travellers to ‗cut out the travel agent‘. Its early advertising consisted of little more than the
airline‘s telephone booking number painted in bright orange on the side of its aircraft. Initially booking
was by telephone only. In December 1997, Russell Sheffield of Tableau, one of Easy Jet's design and
adverting agencies, suggested to Stelios Haji-Ioannou that he should consider trialling a website for direct
bookings. Haji-Ioannou's reply was "The Internet is for nerds, it will never make money for my business!"
However Tony Anderson, Easy Jet's marketing director, and Michael Coltman, Easy Jet's business
manager, saw the potential and approved a website trial involving putting a different telephone
reservations number on the website, to track success. Once Haji-Ioannou saw the results he changed his
mind, and Easy Jet commissioned Tableau as partners to develop an electronic commerce website
capable of offering real-time online booking from April 1998—the first low cost carrier to do so in
Europe. In April 1998 the company created its first Web site for online bookings. The company now
relies almost entirely on this Web site and associated electronic marketing to promote its business.
The Easy Jet URL is now written on the sides of its aircraft as shown below.
Picture from Easy Jet web site (2013)
Easy Jet varies the mix of its promotional campaigns. It frequently runs Internet-only campaigns in
newspapers designed to improve on-line sales. It ran the first of this type of promotional campaign in
February 1999 with impressive results. 50,000 seats were offered to readers of The Times at discounted
prices. Within the first day 20,000 of the seats had been sold; 40,000 within three days. And, according to
the marketing director, Tony Anderson, most of these were seats that otherwise would have been flying
along at 600 mph - empty. The scalability of the Internet helped deal with demand since everyone was
directed to the web site rather than the company needing to employ an extra 250 telephone operators.
However, risk management did occur with a micro site built for Times readers (www.times.Easy Jet.com)
to avoid putting a strain on easy jet’s main site.

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The URL is put everywhere. The web address for eastjet can be found on facebook, twitter, youtube and
many other social media and web site which are related with Easy Jet.
The website is updated all the time in terms of target advertisements and banner.
E-mails are sent to registered customers offering discounted flights at times.
In December 2001, Easy Jet switched from a third-party reservation system to an in-house system
designed and developed for them by BulletProof Technologies, Inc. Internet bookings were priced
cheaper than booking over the phone, to reflect the reduced call centre costs and the aircraft were
repainted with the web address. Within a year over 50% of bookings were made using the web site; by
April 2004 the figure had jumped to 98%. Now, flights can only be booked over the Internet except
during the 3 months immediately before the flight when telephone booking is also available.
LEGAL AND ETHICAL ISSUES
Doing business on the internet comes with its own challenges also. There are legal and ethical issues the
company need to deal with. Easy Jet does most of its business on the internet so the company needs to
protect its consumers and merchants against fraud. It is easy to reach million on the internet and to
conduct different types of electronic commerce related fraud. The success of electronic commerce
depends on the protection provided to consumers and merchants.
Easy Jet will be dealing with information about individuals so privacy of individuals‘ information is very
important. The collection, storage and dissemination of information about individuals‘ rights must be
followed. Internet users in many countries rate privacy as their first top concerns.
Employees of Easy Jet should follow work ethical rules. The employees sometimes can abuse the internet
at the workplace. The company should come up with codes of ethics to help employees not to waste time
on social networks, such as facebook, twitter, mySpace, and LinkeIn. Because some employees spend
time online and productivity is affected.
CONCLUSION
Economic, legal, societal, and technological factors and the trend for globalization have created a highly
competitive business environment in which customers are becoming more and more powerful.
These environmental factors can change quickly, vigorously and sometimes in an unpredictable manner.
Companies need to react quickly to both the problems and the opportunities resulting from this new
business environment.
As a consultant I evaluated the way Easy Jet is doing business the company has grown and it is still
growing and there is a lot of room for growth.
On the basis of the evidence supplied in the case study I recommend that more can be done to grow the
business for Easy Jet.
I recommend that a more simpler web site to be created a web site that is very easy to use with the new
coming mobile computing infrastructure that supports mobile electronic commerce (devices, software and
services).

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A mobile web is needed in this case. A mobile web refers to the use of internet connected applications, or
browser based access to the internet from a mobile device.
This web site should work hand in hand with software intelligent agents. Software intelligent agents can
do more than a search engine. It has capabilities that can be used to perform routine tasks that require
intelligence. For example it can monitor movements on the web site to check whether a customer seems
lost or ventures into area that may not fit the customer‘s needs. If it detects such confusion, the agents can
notify the customer and provide assistance. Software agents can be used in electronic commerce to
support tasks such as conducting complex activities such as interpreting information, monitoring
activities and as an assistant.
Sent with this document is a folder containing a description of the home page for the proposed web site.
Below is a budget for the proposed web site.
Item description price in dollars
Web site design 204.6
Content management system 1100
Domain registration if not registered 66.43421
Web site hosting 33.0868
Software agents 320
Subtotal 1724.12101
Vat 980.70086
Total 2704.82187
In conclusion easy jet is doing well as a business but it can do even better.

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REFERENCES
Beynon-Davies, Business information systems (2010)
Dave Chaffey, E-Business and Electronic commerce Management 3rd Ed. (2000)
Easy Jet (www.epsilon.com/international , 2005 Case Studies in Entrepreneurship)
Airbus family differences. Aircraftspotting.net. Archived from the original on 10 December 2007.
(http://web.archive.org/web/20071210143941/http://www.aircraftspotting.net/aircraft/airbus_a320.html.
Retrieved 21/04/2013.)