This report characterises the strengths, weaknesses, opportunities and threats (SWOT)
facing easyJet from a global perspective. These strengths, weaknesses, opportunities and
threats are summarized in the table below and form the structure of the SWOT analysis.
Strengths Weaknesses
* Solid financial growth
* Strong brand name
* Effective business strategy * Delicate cost position
* Management team
Opportunities Threats
* Fleet expansion
* New routes and expanded operations * Strong competition
* Decline in the European domestic air travel industry
* Consolidation in the European air transportation industry
The following arguments were built on the basis of the companys Annual Report (easyJet,
2006). For an understanding of the drivers of this SWOT analysis and supporting
literature, a PESTLE and Porters Five Forces analysis could be performed.
Strengths
* Solid financial growth: 2005 saw an increase in profitability by some 9.1 percent over
the previous year, totalling 67.9 million before tax. This reflected an increase in passenger
numbers by 21.4 percent to 29.6 million and rise in the revenue per seat by 78 pence to
38.66.
* Strong brand name: easyJet built its name on the back of its flamboyant founder, Stelios
Haji-Ioannou, its bright orange airlines and online booking system, which lead to the
strapline, The webs favourite airline. Together with the companys affinity for picking
fights with larger airlines, such as KLM, British Airways and Swiss Air, the company has
become media friendly and synonymous with low-cost travel.
* Effective business strategy: easyJet has followed a focused strategy around its three
cornerstones: focus on our customers, own our markets and reduce our costs, which has
