This dissertation analyses the key influences on the emergence of Born Global Firms (BGFs) in the airline industry. Thus, it helps to contribute to the general knowledge on the topic known to date and to be an inspiration for future studies in this area. At the centre of attention is the question what key influences favoured the early and rapid internationalization in the case of the low cost airline easyJet.
In order to answer this question the appropriate methodology of a single case study content analysis approach was chosen. Hence reference is made to various documents and archival records such as books, company documents, company websites, journal articles, newspaper articles, official statistical data and other Internet sources. The time period under consideration is from the foundation of the firm to the first internationalization steps.
The results show that the market conditions of the low state protection in the home country, the strong opportunistic behaviour of easyJet when selecting the host country, the high internationality and extensive use of technology in the airline industry has promoted the early and rapid internationalization of eayJet. Further the findings recommend that majority of easyJet’s resources had a positive influence on early and rapid internationalization. The most important key influences could be identified in the Human Resources. Thus the founder of easyJet is a young, confident, international experienced man who possesses a positive mind-set, an international vision and a high risk-tolerance. Missing industry knowledge of the founder is compensated through the extension of the senior management.
Thus, we can conclude that the decisive aspect of whether or not to internationalize lies with the attitudes of senior management. In many cases it requires a “paradigm shift” in order to move toward the BGF model.
Table of Contents
1 INTRODUCTION
1.1 RESEARCH QUESTION
1.2 OBJECTIVES
1.3 STRUCTURE OF THE DISSERTATION
2 LITERATURE REVIEW ON INTERNATIONALIZATION
2.1 INTERNATIONAL BUSINESS THEORIES: AN OVERVIEW
2.1.1 Transaction cost theory
2.1.2 OLI theory
2.1.3 UPPSALA model
2.1.4 Multi stage theory
2.1.5 The lessons from dragon and regional multinationals
2.2 BORN GLOBAL FIRMS
2.2.1 Born Global Firms and its characteristics
2.2.2 Internationalization behaviour of Born Global Firms
2.2.3 Summary
2.3 KEY INFLUENCES ON EARLY AND RAPID INTERNATIONALIZATION– A CONCEPTUAL MODEL
2.3.1 Foundation of the conceptual model
2.3.2 Conceptual model
2.3.3 Key influences on the early and rapid internationalization
2.3.4 Summary
3 THE EUROPEAN AVIATION AND THE EASYJET AIRLINE
3.1 EUROPEAN AVIATION
3.1.1 Systematisation of air traffic
3.1.2 Deregulation of the air traffic
3.1.3 Market definition
3.1.4 Facts and figures
3.2 THE EASYJET AIRLINE
3.2.1 History
3.2.2 Business strategy
3.2.3 Fleet
3.2.4 Passengers
3.2.5 Competition
4 METHODOLOGY
4.1 THE CASE STUDY APPROACH
4.2 SELECTION OF THE CASE STUDY
4.3 CASE STUDY PROCEDURE
4.4 DATA COLLECTION
4.5 DATA ANALYSIS
5 ANALYSIS OF THE KEY INFLUENCES ON EASYJET’S EARLY AND RAPID INTERNATIONALIZATION
5.1 MARKET CONDITIONS
5.1.1 Market conditions in the United Kingdom
5.1.2 Host country conditions in the Netherlands
5.1.3 Industry-specific conditions
5.1.4 Summary
5.2 RESOURCES
5.2.1 Organizational resources
5.2.2 Social resources
5.2.3 Human resources
5.2.4 Physical resources
5.2.5 Technological resources
5.2.6 Financial resources
5.2.7 Summary
6 CONCLUSION
Research Objectives and Key Themes
This dissertation investigates the factors that contributed to the rapid and early internationalization of the low-cost airline easyJet. By applying a single case study approach, the research aims to identify both market-related and resource-related influences that enabled the company to expand into international markets shortly after its foundation.
- Analysis of Born Global Firm (BGF) characteristics in the aviation industry.
- Examination of market-related influences (e.g., market conditions, deregulation, competition).
- Evaluation of resource-based influences (e.g., top management experience, networks, access to capital).
- Application of the conceptual model by Wessely (2010) to the easyJet case.
- Assessment of the role of leadership, risk tolerance, and innovation in early internationalization.
Excerpt from the Book
1 INTRODUCTION
“It was 7 a.m., it was a wet, miserable, lousy day in Luton, and equally cold and miserable in Glasgow. I discovered very quickly that this was not going to be glamorous” – Stelios Haji-Ioannou, founder of easyJet,(Calder, 2006)
This is how the young Greek-Cypriot easyJet founder recalls the day of the first easyJet flight from London to Glasgow on November 10, 1995. In the years after the company was founded, easyJet grew extensively into international markets. Already one year after its launch, easyJet started to offer routes to the Netherlands, France and Spain. Today, easyJet has become the second biggest low-cost airline in Europe, boasting a net revenue of around £ 4.686 million in 2015 (EasyJet annual report, 2015).
The internationalization of enterprises is nowadays one of the main tasks of management teams, who seek continuous growth for their companies. If a firm does not want its products and services to bind them to local markets, expanding into foreign countries is often unavoidable.
Summary of Chapters
1 INTRODUCTION: Presents the research question and objectives regarding the early internationalization of easyJet as a Born Global Firm.
2 LITERATURE REVIEW ON INTERNATIONALIZATION: Provides an overview of international business theories, defines Born Global Firms, and introduces a conceptual model for analysis.
3 THE EUROPEAN AVIATION AND THE EASYJET AIRLINE: Describes the European aviation market and the development of the low-cost carrier easyJet.
4 METHODOLOGY: Explains the case study approach, data collection methods, and the rationale behind choosing easyJet for the study.
5 ANALYSIS OF THE KEY INFLUENCES ON EASYJET’S EARLY AND RAPID INTERNATIONALIZATION: Empirically examines market-related and resource-related factors influencing easyJet’s international growth.
6 CONCLUSION: Summarizes the research findings, offers management implications, and suggests paths for future research.
Keywords
Born Global Firms, Internationalization strategies, early internationalization, rapid internationalization, airline industry, easyJet, low-cost carrier, market conditions, resource-based view, management, aviation deregulation, growth patterns, competitive advantage.
Frequently Asked Questions
What is the primary focus of this dissertation?
The work focuses on identifying the key influences that favored the early and rapid internationalization of the low-cost airline easyJet.
What are the core thematic areas covered?
The study covers international business theories, the specific phenomenon of Born Global Firms, market conditions in the aviation industry, and organizational resources.
What is the primary research question?
The central question is: "What key influences favoured the rapid and early internationalization of the low-cost airline easyJet?"
Which methodology is applied?
The research uses a single case study content analysis approach, utilizing secondary data such as reports, books, articles, and statistical information.
What does the main body analyze?
It analyzes the market-related and resource-related variables based on Wessely’s (2010) conceptual model, specifically looking at easyJet's development from 1995 to 2000.
Which keywords define this work?
Key terms include Born Global Firms, internationalization strategies, airline industry, and competitive advantage.
How does easyJet’s age affect its internationalization?
The study finds that the young age of easyJet, combined with a proactive management approach and access to capital, significantly facilitated its ability to penetrate foreign markets rapidly.
What role does the founder play in easyJet’s internationalization?
The founder, Stelios Haji-Ioannou, is identified as a critical factor, possessing an international vision, risk-taking propensity, and the ability to leverage informal networks, such as financial support from his family.
- Arbeit zitieren
- Johannes Michl (Autor:in), 2016, Key Influences on the Early and Rapid Internationalization in the Airline Industry. A Case Study on easyJet, München, GRIN Verlag, https://www.grin.com/document/337872
