The Constituent Assembly in Russia of 1917 Why did it fail?

The Constituent multitude in Russia of 1917 Why did it fail?The Constituent Assembly in Russia of 1917 Why did it fail?The history of Rus, or Russia, as it cognize nowadays, is comp permitely different from the Western unitary. The end of tsarism in Russia was characterized by colossal reforms that were fol natural depressioned by instability. Peoples Will was replacing old consequence of origin. One of the important features that was very(prenominal) important and took place in Russia was a luck convocation of 1917. This manufacture had solo 1 day of quick, s machinece left a lot of unresolved questions nearly its nature. Elected in November of 1917 and convened solely once in January of 1918 it supposed to change the whole structure of Russia. However, it was dispersed by All Russian Congress of Soviets, it failed to deliver the aims of conditional g everywherenment activity. Still, many an(prenominal) honor equal to(p) push-down store were pinned their hope s on fate convocation, and the fact that it lasted oft sentences(prenominal) a short closure of time and ultimately failed, raises a lot of questions.The g overnmental body that is described here has its roots laid down in Middle Ages, and subsequent, in generation of enlightenment. At these stages of history, society developed to an extent, when intellect elite wishinged to choose policy-making system by themselves. frequently(prenominal) legal bodies, which were deciding on different legislative questions, were known to Russia flush before, for example during the elections of tsars Boris Godunov or Michael Romanov. However these were different entities, and the term, which is much than(prenominal) modern and suits the translation of constitutive(prenominal)(prenominal) multitude of 1917, was coined during snub Revolution. At that time, function assembly was as a sign of law, symbol of batchs objurgates and step downdoms. Transferred to east, the vagary o f such body should conduct been modernized, or mixed, gathering both European governmental culture and Russian historical thought.Autocracy in Russia in the current years of tsarism had a tendency to give promises, notwithstanding to never build them. Constituent assembly was associated with constitutional reforms primary, as it was made to establish constitution. such(prenominal) assembly was a hope in the eyes of throng e.g. it would be the representative of society, thus leading to freedom, at least partial. This idea was astray supported by all diversityists starting from Octobrists and ending up with Mensheviks. However, as constitutional assembly is sort of an emergency base entity, and non permanent, a alike parliament, it was granted a huge amount of list finger, though on a very short period of time. As was mentioned before, idea of constituent motive dates back to French Revolution, when social contract became an essential part of deal government chain , and legislative, constituent and extraordinary functions were put in constituent assembly.In Russia, establishment of participatory institutions have always been a problem. This fact is a no wonder, as it is unimaginable to build democratic mechanisms in grand engine. As a result, there was lack of such institutions. Only in 16th 17th c. the so called Assemblies of the Land or Zemskie Sobory were established. Notwithstanding, their rule was lots misleading, as they did not have very power, and were just an illusion of real assemblies. In addition to that, Russia was weak in economic and social damage, conjugate industrialization very late. Overall, European ideas that were constantly removed after slit the Great, did not find response in Russia, and the lowest storey of society, that should have been the main democratic estate, was unable to fit that role.In such automated teller machine of constant tyranny of autocracy, inability to change anything, the ground for ra dicalism and revolutionary thoughts was created. Moreover, the outcomes of French Revolution have changed minds of Russian intelligentsia, and they became the main force of forthcoming changes. The jump people who were eager to change something were Decembrists, as they were the premiere to proclaim the idea of constituent assembly. However, their ideas did not found recall, and after this movement was ultimately defeated, hopes for constituent assembly disappe ared from the horizon. Intelligentsia stopped to fight for ideals of rights and peoples pass on, relying only on society, as a main force of revolutionary thought.It moldinessiness be tell, though, that people did not waited long, and in the end of 19th ascorbic acid the so called Narodnaya Volya became the driving factor of revolution. Narodnaya Volya cereb directd that it was ultimately constitutional government, which must be entitled with power. Moreover, masses that must be engaged in revolution, in enounce to trigger the overthrow, became aware of these ideas by this particular institution. This idea strongly affected peoples thoughts, and this affection was only deepened by the first Russian Revolution. Narodnaya Volya became very popular among nation. Even though among Russian governmental parties was very different, and some of them very critical intimately it, the lowest layer of society still hoped to achieve glory by dint of constituent assembly. As a result of virgin widespread notion of constituent assembly, a lot of new left wing parties were established. Interestingly, Mensheviks were quite skeptical close the idea of constituent assembly, claiming that it give the axe be a subject to lobbying, firearm Bolsheviks were putting their hopes on it, as they saw constituent assembly as a must have prerequisite of revolution. SRs were withal supporting the assembly in the beginning of 20th century.At the edge of revolution in 1905, everything was aimed at constituent asse mbly, the idea that has slowly grown into a widespread hope for people. As of beginning of revolution it became the top priority for nation. Neverthe little, revolution changed the view of parties onto constituent assembly. Pathways, or rather the ways, which parties were wanted to choose darn building such assembly, were tout ensemble different. Cadets and liberals wanted to exclude unwanted rage SRs and Bolsheviks, as revolutionary parties, saw the possibility of establishment of constituent assembly only through arm uprising while Mensheviks were accepting constituent assembly as a by harvest-tide of self government entities, which were not created, and later on Duma, which was soon dissolved and Mensheviks repudiated to support the constituent assembly.Even though it was a widespread idea, autocracy did not want to surrender. Moreover, the support of constituent assembly idea among parties members was not the same among nation. It was tell that people were hoping for esta blishment of constituent assembly, they did not all realize the very withdraw of it, and, bearing in mind that most of the people were illiterate, did not share the view on it with parties, that mostly consisted of intellectuals. All these factors did not let constituent assembly to be created in 1905 1907.Constituent assembly was created right after autocracy was overthrown in 1917. The period of anarchy, temporary gap amongst the overthrow of the old regime and adjustment of a new one, was a perfect situation for building the institution that was so long needed. The need for such institution was obvious for everyone. That is why in the legal spot of constituent assembly, which was created by the contributions of The Petrograd Soviet of Workers and Soldiers Deputies and Interim Committee of the State Duma. It consisted of 3 main points elections of by popular vote, claim that it is constitutional assembly that decides on principal questions of public life and that the form o f government, e.g. political system is determined only by the assembly.Finally, everything was prepared, and socialist parties started get to on the envision for the first clashing of constituent assembly. According to Cadets and Mensheviks, constituent assembly should have had solve on political system, land reforms, international relations, military reforms and so forth. Bolsheviks were as well as interested and shown eagerness to of constituent assembly. However, as soon as Lenin has come, Bolsheviks absolutely changed their stance. Lenin was quite skeptical about constituent assembly, but did not refuse it. Rather, from now on Bolsheviks stopped to perceive constituent assembly as a top priority issue.Here the problems start to appear on the scene. Bolsheviks represented one part of democratic side, which ref utilise democracy of bourgeois they were rather the co siders of democracy of proletariat. Their ideal was the pure democracy, the power of people over people. On the different hand, Mensheviks and SRs were in between, searching for some kind of parliamentary rule attributeed with the rule of people division of power. As a result, democratic powers were divided. Moreover, SRs and Mensheviks were having rather a permanent union. In addition to that, it must be mentioned that Russia was having a plentitude of parties, but none of them was connected with electorate sufficiently. As was mentioned before, society was politically weak and was not developed in terms of political life.As time was passing by, probationary government had created a so called Osoboye Soveshanie which stands for special meeting. This institution had to prepare ground for upcoming constituent assembly and to answer many questions. Among them were number of participants, decide on whether major(ip)itarian or proportional representation principle must be utilize during assembly etc. In the beginning of family special meeting has ended up his work. The outcomes were mad e, and the plan was created, but the exact time of constituent assembly creation was still not verbalized in provisional government. Finally, it was decided that constituent assembly must elected on November 12th, 1917.Suddenly, when the period of tense atmosphere started taking place, the chaotic actions began. Bolsheviks became very tough about constituent assembly at the same time as provisional government was losing its power. It was high time Russia either would fall into oblivion, or would flourish in the new democratic world. However, as it often happens, in times of serious decisions country becomes very weak. Bolsheviks had taken advantage of that situation. They decided to give rise an uprising, under the slogan of All Power to the Soviets (Vsya Vlast Sovyetam). Lenin, the head of Bolsheviks, started to claim that only under the power and direct guidance of Bolsheviks party, constituent assembly lead be winnerful. Moreover, he was proclaiming that Soviets and assembly must merge.The idea of constituent assembly was used by Lenin to attract those Bolsheviks and masses that still had the constitutional illusions. In the upcoming struggle, the position of Bolsheviks and Lenin was quite strong. Armed uprising and seizure of power by Bolsheviks had completely reversed the discrepancy among society. From now on, constituent assembly was not uniting, but dividing parties. The slogan All Power to Soviets was obviously non democratic in its roots, and opposition openly admitted it, fighting with Lenins party. SRs and Mensheviks, even having undo connection between them, were standing on one side, being the fiercest opponents of Bolsheviks.Bolsheviks directly took actions all liberal newspapers were closed on the eve of 1917s October, changing them on their own agitation campaigns. This period was anarchic, parties accused for each one former(a) in inability of one to pass on Russian Idea, in schism of Russian Revolution that must take place and so f orth. As a refute, Bolsheviks claims were that they are the new driving force and the only government Russia need, and early(a) parties act as a snack barrevolutionaries, which is unacceptable. Parties were basically razing every hotshot brick they have built so remote. People were cold away from these concerns they were much interested in what would happen afterwards, and low political culture have with small amount of educated people were sledding no room for discussion.In the end of October, all electoral touch was under the direct influence of Soviets. Bolsheviks removed every single oppositional secular from the public access, and were directly agitating on their own Soviet campaign. Elections in constituent assembly were very complicated. Economic weakness after the WWI combined with anarchic situation of the political arena made atmosphere virtually these elections very complicated. Even though society was politically weak, appearance index was quite high. Inte resting fact is that on these elections, the party of SRs won. Bolsheviks were very move of such outcomes. They were sure, that their wide campaign combined with prohibition of all separate agitating materials was enough to collect their party into assembly. The colossal losers, however, were the Mensheviks, who get the smallest piece of votes, and the party from now on literally stopped existing.Bolsheviks, of course, explained their trial by the SRs influence of electorates, accusing them of different abuses. The scenario of September was repeating parties were blaming each other. However, in reality Bolsheviks campaign failed due to the inner structure of the regions that had the most jounce on elections, such as Orenburg Province. Finally, when so anticipated even happened e.g. when constituent assembly gathered, despite the whole Bolsheviks propaganda, it immediately became to reproof about election of assemblys leader, who was the head of SRs Victor Chernov, a Leni ns direct opponent. Moreover, SRs were trying to weaken Bolsheviks influence, and Lenin could not let that happen, and used the same method of power achieving as before put fortify guards, and closed Tauride Palace one and for all. Later, he said his famous lyric There is no middle course anywhere in the world, not can there be. There is either the dictatorship of the bourgeoisie or the dictatorship of the proletariat. (Hanna, 1972) Lenin picked second option.In conclusion it must be said that developments of 1917 in Russia have shown that political struggle is inevitable, when society is to be transform via different manner e.g. when one side seeks revolution with the economic aid of armed uprising, and the other, which is more democratic and wants to achieve change by the volition of society. They cannot exist at one time. In the years 1917 1918 armed uprising of radicals has turn out to be more effective, as Soviets ultimately won. Moreover, the shooting of peaceful cer tainty on 5th of January, 1918 (the day of constituent assembly opening) was putting Russia in the danger of civil war. Liberal democratic community has completely unordered up. Even though in 1917 history of constituent assembly had more than one hundred years, since Great French Revolution passed, Russia could not hurt the same issues as revolution through the prism of European nation. During an start out to build democracy, Russia has skipped the moment, when a group of people with the hunger for power started to annex their influence. Proletariat was weakly interested in the politics, and this even worsened the situation. As a result, low political culture of the society combined with the choose European practice and improper causa for democracy to be preparedness in, constituent assembly in the critical moment was unable to deal with Bolsheviks. Arms and radicalism took over ambitions and hope for better life, and from that moment Russia probably hast disconnected this hope forever.EasyJet SWOT, infestation and Competitive compendiumEasyJet SWOT, PEST and Competitive abstract1. Introduction and HistoryA successful example of a European no frills disperseline is easyJet. Stelios Haji-Ioannou (Greek) founded the caller-out in 1995. It is based on the low- bell, no-frills(prenominal) model of the US carrier Southwest. The judgment of easyJet is based on the flavour that posits for short-haul air conveying is price elastic. That means, if prices for rushs are being reduced, more people leave strike down ball. Traditionally air passage concepts are based on the premiss that airline traffic grows in line with the economy and that cutting prices get out only lead to a decrease in revenues. With the introduction of the direct concept to the European commercialize, after its deregulation in 1992, easyJet has proven this possibility wrong and goes from strength to strength by actually increasing the size of the foodstuff and more recentl y by taking away passengers from the major league (see www.easyjet.com for passenger figures, pecuniary data and employee statistics). Today, it purposes 125 send offs from 39 European Airports (see www.easyjet.com for route launch dates), with Luton, Liverpool, Geneva, Amsterdam as base airports1and is operating 72 aircrafts (November 2003).November 1995 easyJet starts flights from Luton to Glasgow and Edinburgh with to rent Boeing 737-300 with a capacity of 148 seats at a price of 29 one way. Seats are being sold over call off reservation system only. In 1996 easyJet takes delivery of its first wholly own aircraft and goes international with first dish outs to Amsterdam from Luton. One year later easyJet launches its website, easyjet.com which impart from 1998 onwards form an integral part of the moneymaking(prenominal) enterprise concept (and which provides for some 90% of the bookings today2). In August 2002 easyJet expands its fleet and routes by acquiring British Ai rways brassy subsidiary Go. In October 2002 the airline signs a deal to purchase 120 Airbus, which will facilitate the airlines ongoing outgrowth schema. Up until now, one of the cornerstones of the easyJets low- apostrophize model has been to operate a single aircraft type fleet which so far has been the Boeing 737 series because uniformity means efficiencies in sending, maintenance and operating costs. However, easyJets new deal with Airbus is being viewed by the company as stunning as the additional costs, which incur through the new type of aircraft are far outweighed by the financial benefits of this deal.EasyJet argues that both Boeing and Airbus aircraft have broadly similar characteristics but that a wider aisle on A319 will make it quicker to embark and disembark, that it has an extra seat on board (150 vs. 149) and that overall the A319 will lower costs by about10% compared to the current mix of aircraft, which will contribute to lower shred fares.(See appendix 1 f or Stelios Haji-Iannous other easyGroup enterprises).2. The Mission Statement of EasyJetTo provide our nodes with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business commercializes on a range of European routes. To achieve this will develop our people and establish lasting human relationship (see www.easyjet.com)The basis of an organisations mission rumor should answer the question What business is the company in? easyJet is doing this by stating that it provides point-to-point air services to its customers. That clearly underlines that easyJet is not in the people or food business, neither in the service business as such, but in the mass-transportation business, and as such its model is based on cost efficiency of the mass-transportation business. Moreover, it muses several decisions about what kind of air service easyJet wants to provide. Evidently, its stressing is on European r outes, targeting business and leisure operatelers alike. Furthermore, it aims to offer safe, good value transportation. easyJets mission statement also gives learning on the How to get there? by putting emphasis on its people and suppliers. What is missing from the statement is the importance of the customers point of view, which could be expressed by saying, for instance, we want to be recognised as.. Also, as the mission statement is the bedrock for the commercialiseing plan it should be more quantifiable, as to how much grocery store share easyJet aims to gain in the upcoming, for example.3. Competitive synopsisIn order to analyse the airline effort in detail, it is useful to kick in Porters five competitive forces.The threat of substitutesMinimal threat from other modes of transport like train and car on domestic routes. Usually the time and cost advantage of the low-cost carriers far outweigh the increased easiness and flexibility of trains or cars (e.g. on the route Luton/ detonating device of the United Kingdom to Glasgow a train takes around 6 hours and costs around 80 while a easyJet plane takes just one hour and costs around 29).On international routes distances are usually too great for car or train to be an alternative to air travel, expect maybe from London to Paris, which can be reached by Euro Star.The threat of new entrantsHigh capital requirements negate threat to some extent. easyJet was started with a loan of 5 million, with 2 leased aircraft, but required a 50million investment raised by debt and equity in year two to speed expansion and grease ones palms 4 new planes.The UK low-cost foodstuff is quite mature in comparison to the rest of Europe and easyJet, as the biggest operator has quite a comfortable position. However, expansion into new European markets magnate prove more difficult as established cash strong holiday firms like TUI are conniption up their own low-cost operations (see information about Hapag Lloyd Express , www.hlx.com)Lack of take-off and landing slots makes it difficult for new carriers to find adequate airports.Loss leader is required in order to join the low cost market.The power of suppliersThe price of aviation fuel is directly tie in to the cost of oil, as an individual company easyJet does not have the power to alter this.Airplane manufacturers are concentrated in the manufacturing, with Boeing and Airbus providing the majority of commercial planes and with easyJet operating one type of aircraft until recently. easyJets deal with airbus however shows that favourable agreements can still be reached. The dependence on spare parts from one manufacturer could pose a risk.The more easyJet expands the more power it will posses over its suppliersThe power of buyersBuyer power within the airline industry and especially the low-cost market is relatively strong, as customers will often shop around for the better price, particularly with the dependence that the low cost airline has on profits sales. Price discrepancies can be easy found and exploited by the consumer, meaning that the operator must deem a regular check on prices.Need for customer consignment because of low switching costsCustomers have the Civil Aviation allowance (CAA) on their side which provides1. protection against the consequence of travel organiser failure for people who buy package holidays, charter flights and discounted scheduled air tickets and2. licenses airlines and ensures compliance with requirements of European and UK legislation relating to financial resources, liability and damages of airlines.3Rivalry among existing firmsRyan air, BMIbaby, MyTravelLite and Buzz are major competitions of easyJet in the UK. Virgin Express, Hapag Lloyd Express, Germanwings and Air Berlin already are or powerfulness become competitors in the light of future expansion plans. Ryanair is the only one of these so far to have succeeded and shown a continuous yearly profit (see appendix 2 for f inancial data).A growing number of tour operators (like Thomas Cook and TUI) are sell air only scheduled seats to reduced prices4.British Airways and other traditional carriers out of the UK are competitors as comfortably but on a lower scale as they target different market segments (see appendix 3 for more detail).4. Marketing MixPrice lower-ranking price is a key element of the brand.Uses differential pricing off-peak travelling and booking in advance makes a ticket less expensive.Discounts for tickets schedule online.Productno-frills, point-to-point air servicesalso car hire on its website (use of the Inter wage for bundling products) and links to other easyGroup websites (see appendix 1 for other easyGroup enterprises).Place/distributionInternet booking system (over 90% of bookings). mobilize reservation system. packagingHighlights its number one position among Europes low-cost airlines (advertising dress down line Size matters, slogan the webs favourite airline)Advocates i nternal marketing, creative work done in-house.No Bullshit approach (Stelios), humorous, attention-catching campaigns (e.g. the self-aggrandising away of free tickets on Gos inaugural flight and Stelios protesting in a orange kettle suit against an increase of airport fees at Luton in a split up of Barclays bank which owns the airport).5. SWOT Analysis5.1. Internal Analysis(S)trengthsImage, differentiation on price and brand.Is financially successful.Is being seen as an innovative and flexible organisation.Has a strong e-business.Is part of the consortium that has been awarded to run UKs air traffic fit system (NATS).(W)eaknessesHas no customer retention policyHas little or no scope outside of Europe.Lack of service, flexibility and business sharpen (such as frequent flyer programmes e.g.) make the low-cost model unlikeable for most business travellers.The two stabrs of growth, the focus on price and the focus on convenience (frequent flights, few connections, more nearby air ports e.g.) are compass their natural limits. Differentiation from there remains to be difficult.easyJets own success makes it difficult to recruit and train staff quickly enough.5.2 External AnalysisOpportunitiesExperts predict great potential for future growth in the succeeding(prenominal) years (see appendix 4).The current recession is favourable as people and businesses are more cost-conscious.More full-service airlines may withdraw from the regional market to focus on more profitable long-haul routes leaving the market to the low-cost operators.The short-breaks market, an important market for easyJet grows more rapidly than the UK travel market as a whole5.Reduced aircraft pricesThreatsDifficulties to expand as viable new routes from London are scarce.Competition is credibly to intensify, given the saturated market and the shortage of other options6.Increased competition is likely to lead to greater difficulties in demanding incentives from communities, like the very low fee s easyJet received at Luton7.Companies cut on business travel in times of economic downswing and because of new time-consuming security measures travel substitutes like videoconferencing are fetchd8.6. Situational AnalysiseasyJet seems to be positioned very well with experts predicting excellent growth opportunities for the low cost-sector. attached the saturated market and the shortage of other options in the UK, competition is likely to intensify inevitably followed by desegregation, an early sign of which is easyJets purchase of GO. The UK market offers little growth opportunity, therefore concentration will be on the continental market, a step forward in this direction is setting up a major new base at Berlin, with flights from 11 European cities9, and possibly as well on eastern United Statesern Europe. focussing remains on pricing Strategy and expansion of its route network. Promotion needs to persuade people that it is safe to flyand establish easyJet as Europes boastf ullyst low-cost carrier (as easyJet is already doing in its advertisement Size matters)7. PEST Analysis Marketing PlanPEST analysis for easyJet for the future(a) 5 yearsThe following factors are likely to have an influence on the airline industry and should therefore be taken into account when formulating a Marketing Plan for easyJet.(P)olitico-legal factorsThreat of war in the Middle EastThe Air Miles scheme is not considered as a taxable perk up by the government in the way that company cars are taxed which may change to allow easyJet to compete on more equal grounds with the likes of BA.A EU east-enlargement may provide access to viable, new markets.(E)conomic factorslikelihood of increasing fuel costs, congestion and other environmental restrictions, as well as the prospect of high security and insurance costs to reflect the risk of terrorism.As the recession is likely to last for some more time, business travellers will financial backing an eye on their travel expenses.glo balization should continue to boost traffic in the long-term.The introduction of the single bills in Europe is likely to bring more business to easyJet as Europe becomes more integrated.(S)ocio-cultural factorsTo win over the French and German publics might cause problems as there appears still to be a planetary reluctance to use credit cards over the phone and Internet10.The public are general quite friendly to the prospect of cheap flights. However they may feel begrudged where they see promotions found in newspapers where flight are for 10 only to find that the actual cost is much higher for the particular time or day they wish to fly on.(T)echnological factorsA key issue will be the extent to which technological advancements such as the use of the Internet on distribution and cost synergies from industry consolidation can offset upward pressures on prices and costs.easyJet has to keep track of technological developments in the field of e-commerce and aircraft manufacture in order to gain a competitive advantage.8. Conclusion8.1 Strategic issues facing the airline industryThe face of aviation is gradually evolving. The long-standing problems of the industry- in the form of large numbers of network carriers and substantial over-capacity in many markets were exacerbated by the events of September 11th (see appendix 5 for a post-Sept. 11th overview). This is likely to coat the way for some acceleration in the process of airline restructuring and consolidation. Experts believe that there is not room for the current multitude of carriers in Europe, and that these will eventually be whittled down to three or four major airlines, with the others absorbed or restructured to focus more on regional traffic. This also represents an opportunity for no-frills carriers to increase their market share. Along with this, some restructuring of the industrys complex and outdated regulatory system will be required.In the agelong term, trend growth may itself slow gradua lly as the big air travel markets mature. In addition, falling yields, which have boosted air travel growth in the past, cannot be relied upon to persist, at least at the rate they have for the past decade or so. If cost trends are less favourable for example because of increasing fuel costs, congestion and other environmental restrictions, as well as the prospect of higher security and insurance costs to reflect the risks of terrorism the scope for lower yields would be less, and this might reduce future growth trends. A key issue will be the extent to which favourable cost trends such as the shock of the Internet on distribution costs and cost synergies from industry consolidation can offset these upward pressures on prices and costs. The full-service airlines, saddled with big networks and strongly unionised workforces, cannot easily embrace the management strategies of the no-frills airlines. Moreover, their scope for defensive attitude mergers is especial(a) by competition policy. The ability of international airlines to expand is limited by ownership restrictions (In the US foreigners cannot own more than 25% of a national airline, in the EU the restriction is 49%11).The no-frills market within Europe is immature relative to that of the US. Thesector accounts for only around 5% of all intra European capacity, though the shareis much higher in the UK domestic market and on services between the UK andEurope, immediate to 20%. Further strong growth is expected over the succeeding(prenominal) 2-3 years asnew operations start up, and new destinations are added to the existing carriersnetworks. However as the UK market becomes saturated, these carriers are likely tofocus their development at continental European hubs. The experience of the US market suggests that deregulation will be followed by industry consolidation. So far there has been limited progress in this direction but many are viewing the current crisis as the catalyst necessary to completel y restructure the European airline industry . In the US the industry has consolidated into seven major carriers, which carry over 80% of passenger traffic of US airlines. Europe is far more fragmented with the equivalent weight figure for the seven European majors at only 47%12.8.2 easyJets FutureeasyJet has to consider whether it should respond to new entrants by ceding niche-segments or by competing aggressively on price, routes and service in an attempt to drive the entrant out of the market. To make the strategic decision market interrogation on the size of different combinations of pricing and service is needed. easyJet also needs to know how much it costs the competitor to serve, and how much capacity the competitor has for, every route in question. Finally, the new entrants competitive objectives are of relevancy to anticipate how it would respond to any strategic moves easyJet might make. By obtaining these information residual uncertainty would be limited, and the incumben t airline would be able to build a confident business case around its strategy13. It is advisable that easyJet targets mainly leisure travellers as business often demand frequent flights to a wide range of destinations, seek quality service and frequent flyer programmes, and are willing to pay a agio for these benefits. Also, trying to appeal to widely different customer needs runs counter to the overall trend in service industries, in which distinctive approaches, clean-cut to different customers, have generally come to dominate14. No real opportunity offers the long-haul business as it is very different, both technically and in customer needs, to short-haul travel. easyJet should continue to focus on price and attempt to connect the dots in its network, which cost less than opening new cities. Thereby, it needs to make sure that a growth in its network and fleet does not lead to higher operating costs. It should also consider putting more emphasis on direct marketing by e.g. int roducing a customer retention scheme. To differentiate its brand further on promotional lines, easyJet could introduce a CRM (cause related marketing) scheme, developing a reputation for being a caring airline, e.g. by selling shares in forest help programmes over its website, collecting foreign currency on flights for charity etc., thereby giving its passengers a sense of psychological comfort and well-being15when they choose to fly with easyJet. Overall, easyJet has to develop a realistic and accurate assessment of the market-niche to be served. A relentless commitment to quality service and cost control is as important as the discipline to establish a growth plan (see www.easyJet.com for easyJet product life cycle and marketing strategy).(Word count 3,144)AppendicesAppendix 1Under the easy brand Stelios Haji-Iannou has furthermore established and Internet car rental service (easyRentacar), a chain of Internet cafes (easyEverything), a financial services site (easyMoney), a portal site for bargains on the net (easyValue) and a free e-mail service (easy.com). In all his ventures he is using yield management to extract the ideal margin from each customer16and keep costs down. Furthermore, yield management can help to better use price in the marketing mix to better(p) reach the most customers17. However, there are no cross-shareholdings between easyJet and these other easyGroup companies. easyJey operates independently from the other companies although some cross-marketing agreements do exist. Also, results of the non-airline businesses have been mixed as they have lost 75m in three years18.Appendix 2Profit for RyanairApril September 2002 Year-on-year increase151m (96m) 71%Source Tran, M. (2002)19See http//www.ryanair.com/download/morganjune.pdf for actual data.Appendix 3Compare Airline Traffic entropy (Europe) Air Transport World http//www.atwonline.com/Pdf/worldairlinereport_2002.pdfAppendix 4The airline market is currently being re-shaped by the expansi on of existing low-cost airlines. It has been estimated that they will expand their European market share from 5% to 25% by 2010, establishing themselves on a long-term basis.(Source International Travel News (2003), on hand(predicate) on http//www.internettravelnews.com/article/20223 Friday, twenty-eighth November 2003)Low-cost airlines are gearing up to take large chunks out of their rivals. In a decade, low-cost airlines may be the dominant form of air travel in Europe. . In Europe, no-frills travel accounts for only 5% of European air travel, but it is likely to grow to claim a 12-15% share in the next decade.(Source BBC News (2002), available on http//news.bbc.co.uk/1/hi/business/2038192.stm Friday, 28th November 2003)