(10 Marks) Assess, with reference to Porter’s five forces, whether the ‘bargaining power of buyers’ represents the most significant external influence on easyJet plc.

Question 1

Porters 5 forces

Answer 1

A model that is used to analyse the level of competition in a market and the competitive environment for example the ‘bargaining power of buyers’

Question 2

one significance of bargaining power of buyers for EASYJET
- linked to customers and bad experiences

Answer 2

Customers can share bad experiences on social media -> which can affect reputation of easyjet

Question 3

Counterbalance - other external influences

extract quote

Answer 3

threat of new entrants can be most significant influence

e.g. “rise of new generation of budget airlines” -> can be most signinficant influence on easyjet e.g can affect sales

Question 4

Overall Judgement - pick one ( which one is most significant external influence)

Answer 4

Overall threat of entrants = most significant external influence in long term
- can rival easyjet for customers in long term