Easyjet- resource allocation and analysis

Essay by sharonwenUniversity, Master'sC, August 2004

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Due to the immense diversity of the Internet, different companies have adopted varying strategies that they believe will best suit their needs. These vary from heavy advertising driven strategies to direct online sales and e-commerce selling their products direct from their websites. The airline industry is well suited to develop business on the Internet due to the versatility of their 'product'. The industry does not rely on 'hands-on' experience of the product, or even require consumers to 'see' the product before they buy. For these reasons selling airline tickets online has been an extremely profitable development for the majority of airlines. One major benefit from selling online is that companies can sell directly rather than having to pass through the traditional travel agency networks that used to dominate the sales for aeroplane tickets, charging commission on each one sold which invariably would add to the cost for the consumer. The Internet also allows for sales to take place 24 hours a day, 365 days a year to cater for people ordering flights at any time and, with the Internet's global reach, from anywhere around the world.

Consumers have benefited from rapid growth of the airline industry over the past couple of decades as more and more companies found the market to be profitable and the increased competition forced prices down to more affordable levels. The current trend toward global business has also increased the necessity for fast and easy transportation over large distances and so the industry has received an extremely beneficial injection from the business sector. Technological developments have decreased costs while increasing comfort and safety, further increasing the already positive safety record of airline companies. These developments, along with government legislation, have also led to the formation of a new type of airline, the 'no-frills' budget airlines. These...