Economic

In its simplest terms, a business model is a unique framework that a company uses to create value. A business entity exists to fulfill its purposes and how they define “value” is unique to them. A commercial business may exist solely to generate profit whilst a non-profit organization may exist to create social or other value. A business model ultimately answers the question of “how does the business survive and how does it achieve its purpose?” It does NOT describe the internal actors, relations or processes of an organization, but rather describes the logic behind its operation. Some business models are fairly simple whilst others are intricately woven. For instance, a newspaper seller on the street makes a profit in a very basic way, whilst the way in which the BBC broadcasts the news is incomparably more complicated. Not considering levels of complexity, all business models that exist consist of four main components and we wish to discuss these with particular relevance to Easy Jet. These are summarized below but will be discussed in greater detail.

1. Value Proposition - the combination of benefits offered to customers. Easy Jet operates very cheaply which enables them to offer customers convenience, reliability and great service.

2. The online offering is a broad description of the service that a company provides. Easy Jet offers cheap flights to convenient European destinations and also offers other related services.

3. The resource system describes how the company aligns its resources (CELL) to provide the value proposition. Easy Jet hacks at overhead costs by various means to provide low cost per seat.

4. The revenue model describes the means by which the business generates revenue. Easy Jet implements a service revenue model as they make a profit by providing various services.

Ever since Haji-loannous made the decision to re-establish Easy Jet as an E-business in April of 1998, Easy Jet has intensified their online strategy to improve their...