• Swot Analysis of EasyJet 2018
• Porters Five Forces Analysis of EasyJet 2018

Introduction

In this report, we analyze EasyJet using Pestel to gain an in-depth understanding of the macro environment and the effects it’s been having on EasyJet operations. An EasyJet pestle analysis reveals a number of serious threats emanating from its industry environment in the UK and EU including Brexit, unfavorable currency movements, rising labour costs and many others which will be detailed in the report. It is vital for a firm such as EasyJet to analyze the macro environmental influences as any change in the external environment can be fatal for organizations. However, the environment can be a source of opportunities once a firm such like EasyJet identifies key drivers of change in the airline industry, which may become sources of future competitive advantage.

1.0 Pestle Analysis of EasyJet 2018

Pestle is a strategic framework used by organizations to study the external environment in which they operate. Changes in the macro environment can present opportunities for expansion and market growth but they can also be fatal for organizations. Such changes can be political, economic, social, technological, environmental or legal (Johnson et al 2008; Grant 2010).

1.1 Political factors

1.1.1 The impact of Brexit on EasyJet

The biggest political factor facing EasyJet and rivals is the potential exit of Britain from Europe. How will Brexit affect EasyJet? The answer revolves mainly around the issue of single market access for British majority owned airlines such as EasyJet which will need to either relocate or set up EU subsidiaries to retain EU access privileges under the European Common Aviation Area (ECAA) agreement which allows UK airlines to operate across EU countries (Trentmann 2017).

As a majority owned UK airline, EasyJet stands to lose EU access privileges unless they change ownership structure and also set up an EU operation. This is why the ai