First and foremost, new entrants will threaten the Easyjet. It’s because the new entrants will make the market more competitive. EasyJet will not be able to make as high as the profit like what they’re receiving at the moment. In order to reduce the amount of new entrants, EasyJet can try to create barrier to entry. For example, EasyJet can limit pricing. It’s the action that the firm sets price sufficiently low to deter entry. Secondly, the intensity of rivalry amongst competitors is the main factor that will affect the profit of EasyJet directly. By reducing the number of competitors, it can takeover his competitors. In 2002, EasyJet has taken over another airline called Go and merger with Gb airway in 2008. The move of taking over his revealers can be resulted in the reduction of the firms in the market. Less competition means higher profit. Thirdly, the power of the buyers will determine the profit as well. When the price of EasyJet is more expensive than his revealer like Ryanair, customers would choose the Ryan air according to the cheaper price. In this market, customers are looking for a cheap price and efficiency. EasyJet will need to reduce and limit the choice for customers. For example, take over a competitor will reduce the size of competition and the choice to customers. Fourthly, the effect of suppliers take an important part to influence the EasyJet, for example rising cost of oil costs putting significant pressure on the profitability of less popular routes and time slots.
Profit will be decrease. But EasyJet can try to seek for other suppliers instead. It will increase the