EASY JET (ONE BUDGET AIRLINE) Essay Example | Topics and Well Written Essays - 2500 words

EASY JET (ONE BUDGET AIRLINE) - Essay Example Porter's Generic Value Chain can be applied to examine the firm's ability to connect primary value chain activities with support services (Porter, 1998). Easy Jet has made use of both strategies to better advantage in marketing its products. Supplier power refers to the degree of freedom that suppliers have over the firm which buys supplies from them. Easy Jet in particular and the budget airline industry in general have to procure supplies from suppliers in the open market where rules of competition might threaten Easy Jet's own strategic objectives as well as others. For example customer care practices require a host of supplier networks to coordinate every aspect of the marketing process from the time of inquiry to the end of the journey. How Easy Jet would respond and how would the rest of the industry respond to all this, depend on a number of other variables such as the concentration ratios in the supplier industries, the availability of and the degree of dependency on credit, macro-economic variables, e.g. interest and business tax rates and a host of other factors. In the airline industry it's an unwritten rule that the aggregation of strategic supplier networks across a range of ancillary services - e.g. handli ng customers' inquiries to the seat allocation process - would benefit only those airlines which place their products in strategic sub-segments appropriately and immediately. Buyer poweBuyer power is perhaps the most effective force with far reaching consequences for the business that the company has to face. For instance customers of short haul budget airlines carry such weight in the decision making process of the individual airline to such an extent that they can drive prices down if they happen to boycott a certain airline or airlines on the ground that their services are below their expectations. Buyer power has also been studied in the budget airline market segment with reference to price and income elasticities of demand. The European no-frills low cost airline market segment is ruled by the same economic principles but its qualitative shift has brought about a highly articulate population of consumers whose demand for the product at a given time is determined not only by the price and