easyJet
Business Model Analysis
BMAN72801

EasyJet’s Business Model Analysis

Table of Contents
Executive Summary................................................................................................................................. 1
1. The Business Model of EasyJet ........................................................................................................... 2
1.1 Theory ........................................................................................................................................... 2
1.2 Easyjet’s Business Development ................................................................................................... 2
1.3 EasyJet’s Current Business
This has been coupled with an increased competitive pressure from flag carriers in primary airports. To avoid these threats, a solution of moving to secondary airports within closer proximity to their primary counterparts has been examined in detail.

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BMAN72801

EasyJet’s Business Model Analysis

1. The Business Model of EasyJet
1.1 Theory
The concept of Business Model has been identified by Johnson (2010, p.22) as “a representation of how business creates and delivers value both for the customers and the company”. He introduced a four-box business model framework, which includes four key elements: Customer Value Proposition
(CVP), Profit Formula, Key Resources and Key Processes. CVP is described as how a company creates value for a given set of customers at a given price. While, Profit Formula outlines how a company identifies its assets, cost structures, margins and resource velocity to create value for itself and shareholders. On the other hand, Key resources and processes form part of the operational model, they are the assets used by the organisation to deliver value to its customers and its business, they include employees, products, technology, brand product development, business rules and behavioural norms (Johnson, 2010, pp.24-46).

1.2 Easyjet’s Business Development
In 1995, EasyJet was set up as a Low Cost Carrier (LCC) drawing on the business model from the
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