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

The Constituent Assembly 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 known nowadays, is completely different from the Western one. The end of tsarism in Russia was characterized by vast reforms that were followed by instability. ‘People’s Will’ was replacing old meaning of power. One of the important features that was very important and took place in Russia was a constituent assembly of 1917. This assembly had only 1 day of existing, but left a lot of unresolved questions about its nature. Elected in November of 1917 and convened only 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 provisional government. Still, many people were pinned their hopes on constituent assembly, and the fact that it lasted such a short period of time and ultimately failed, raises a lot of questions. The governmental body that is described here has its roots laid down in Middle Ages, and later, in times of enlightenment. At these stages of history, society developed to an extent, when intellectual elite wanted to choose political system by themselves. Such legal bodies, which were deciding on different legislative questions, were known to Russia even before, for example during the elections of tsars Boris Godunov or Michael Romanov. However these were different entities, and the term, which is more modern and suits the definition of constituent assembly of 1917, was coined during French Revolution. At that time, constituent assembly was as a sign of law, symbol of people’s rights and freedoms. Transferred to east, the idea of such body should have been modernized, or mixed, gathering both European political culture and Russian historical thought. Autocracy in Russia in the latest years of tsarism had a tendency to give promises, but to never realize them. Constituent assembly was associated with constitutional reforms first, as it was made to establish constitution. Such assembly was a hope in the eyes of people – e.g. it would be the representative of society, thus leading to freedom, at least partial. This idea was widely supported by all revolutionists – starting from Octobrists and ending up with Mensheviks. However, as constitutional assembly is rather an emergency – based entity, and not permanent, like parliament, it was granted a huge amount of power, though on a very short period of time. As was mentioned before, idea of constituent power dates back to French Revolution, when social contract became an essential part of people – government chain, and legislative, constituent and extraordinary functions were put in constituent assembly. In Russia, establishment of democratic institutions have always been a problem. This fact is a no wonder, as it is unimaginable – to build democratic mechanisms in autocratic 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 often misleading, as they did not have real power, and were only an illusion of real assemblies. In addition to that, Russia was weak in economic and social terms, joined industrialization very late. Overall, European ideas that were constantly removed after Peter the Great, did not find response in Russia, and the lowest layer of society, that should have been the main democratic estate, was unable to fit that role. In such atmosphere of constant tyranny of autocracy, inability to change anything, the ground for radicalism and revolutionary thoughts was created. Moreover, the outcomes of French Revolution have changed minds of Russian intelligentsia, and they became the main force of upcoming changes. The first people who were eager to change something were Decembrists, as they were the first 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 disappeared from the horizon. Intelligentsia stopped to fight for ideals of rights and people’s will, relying only on society, as a main force of revolutionary thought. It must be said, though, that people did not waited long, and in the end of 19th century the so – called ‘Narodnaya Volya’ became the driving factor of revolution. Narodnaya Volya believed that it was ultimately constitutional government, which must be entitled with power. Moreover, masses that must be engaged in revolution, in order to trigger the overthrow, became aware of these ideas by this particular institution. This idea strongly affected people’s thoughts, and this affection was only deepened by the first Russian Revolution. Narodnaya Volya became very popular among nation. Even though among Russian political parties was very different, and some of them very critical about it, the lowest layer of society still hoped to achieve glory through constituent assembly. As a result of new widespread notion of constituent assembly, a lot of new left – wing parties were established. Interestingly, Mensheviks were quite skeptical about the idea of const ituent assembly, claiming that it can be a subject to lobbying, while Bolsheviks were putting their hopes on it, as they saw constituent assembly as a must – have prerequisite of revolution. SRs were also supporting the assembly in the beginning of 20th century. At the edge of revolution in 1905, everything was aimed at constituent assembly, the idea that has slowly grown into a widespread hope for people. As of beginning of revolution it became the top priority for nation. Nevertheless, revolution changed the view of parties onto constituent assembly. Pathways, or rather the ways, which parties were wanted to choose while building such assembly, were completely different. Cadets and liberals wanted to exclude unwanted violence; SRs and Bolsheviks, as revolutionary parties, saw the possibility of establishment of constituent assembly only through armed uprising; while Mensheviks were accepting constituent assembly as a by – product of self – government entities, which were not created, and later on Duma, which was soon dissolved and Mensheviks refused 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 said that people were hoping for establishment of constituent assembly, they did not all realize the very need 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 between 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 status 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 three 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 of government, e.g. political system is decided only by the assembly. Finally, everything was prepared, and socialist parties started work on the plan for the first meeting of constituent assembly. According to Cadets and Mensheviks, constituent assembly should have had influence on political system, land reforms, international relations, military reforms and so forth. Bolsheviks were also interested and shown eagerness to of constituent assembly. However, as soon as Lenin has come, Bolsheviks suddenly 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 refused 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 other hand, Mensheviks and SRs were in – between, searching for some kind of parliamentary rule connected 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, provisional 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 majoritarian or proportional representation principle must be applied during assembly etc. In the beginning of September special meeting has ended up his work. The outcomes were made, 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 prosper 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 make 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 will be successful. 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 Lenin’s party. SRs and Mensheviks, even having loose connection between them, were standing on one side, being the fiercest opponents of Bolsheviks. Bolsheviks immediately took actions – all liberal newspapers were closed on the eve of 1917’s October, changing them on their own agitation campaigns. This period was anarchic, parties accused each other in inability of one to pass on Russian Idea, in schism of Russian Revolution that must take place and so forth. As a refute, Bolsheviks’ claims were that they are the new driving force and the only government Russia needs, and other parties act as a counterrevolutionaries, which is unacceptable. Parties were basically ruining every single brick they have built so far. People were far away from these concerns – they were more interested in what would happen afterwards, and low political culture combined with small amount of educated people were leaving no room for discussion. In the end of October, all electoral process was under the direct influence of Soviets. Bolsheviks removed every single oppositional material from the public access, and were directly agitating on their own Soviet campaign. Elections in constituent assembly were very complex. Economic weakness after the WWI combined with anarchic situation of the political arena made atmosphere around these elections very complicated. Even though society was politically weak, appearance index was quite high. Interesting fact is that on these elections, the party of SRs won. Bolsheviks were very surprised of such outcomes. They were sure, that their wide campaign combined with prohibition of all other agitating materials was enough to make their party into assembly. The big losers, however, were the Mensheviks, who get the smallest percentage of votes, and the party from now on literally stopped existing. Bolsheviks, of course, explained their failure 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 impact on elections, such as Orenburg Province. Finally, when so anticipated even happened – e.g. when constituent assembly gathered, despite the whole Bolshevik’s propaganda, it immediately became to talk about election of assembly’s leader, who was the head of SRs – Victor Chernov, a Lenin’s 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 armed guards, and closed Tauride Palace one and for all. Later, he said his famous words: ‘There is no middle course anywhere in the world, not can there be. T here 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 transformed via different means – e.g. when one side seeks revolution with the help of armed uprising, and the other, which is more democratic and wants to achieve change by the will of society. They cannot exist at one time. In the years 1917 – 1918 armed uprising of radicals has proved to be more effective, as Soviets ultimately won. Moreover, the shooting of peaceful demonstration 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 broken up. Even though in 1917 history of constituent assembly had more than one hundred years, since Great French Revolution passed, Russia could not sustain the same issues as revolution through the prism of European nation. During an attempt to build democracy, Russia has skipped the momen t, when a group of people with the hunger for power started to increase 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 adopted European practice and improper grounds for democracy to be set 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 lost this hope forever. EasyJet: SWOT, PEST and Competitive Analysis EasyJet: SWOT, PEST and Competitive Analysis 1. Introduction and History A successful example of a European no frills airline is easyJet. Stelios Haji-Ioannou (Greek) founded the company in 1995. It is based on the low-cost, no-frills model of the US carrier Southwest. The concept of easyJet is based on the belief that demands for short-haul air transport is price elastic. That means, if prices for flights are being reduced, more people will fly. Traditionally airline concepts are based on the assumption that airline traffic grows in line with the economy and that cutting prices will only lead to a decrease in revenues. With the introduction of the no-nonsense concept to the European market, after its deregulation in 1992, easyJet has proven this theory wrong and goes from strength to strength by actually increasing the size of the market and more recently by taking away passengers from the majors (see www.easyjet.com for passenger figures, financial data and employee statistics). Today, it offers 125 routes from 39 European Airports (see www.easyjet.com for route launch dates), with Luton, Liverpool, Geneva, Amsterdam as base airports  [1]  and is operating 72 aircrafts (November 2003). November 1995: easyJet starts flights from Luton to Glasgow and Edinburgh with to leased Boeing 737-300 with a capacity of 148 seats at a price of  £29 one way. Seats are being sold over telephone reservation system only. In 1996 easyJet takes delivery of its first wholly owned aircraft and goes international with first services to Amsterdam from Luton. One year later easyJet launches its website, easyjet.com which will from 1998 onwards form an integral part of the business concept (and which provides for some 90% of the bookings today  [2]  ). In August 2002 easyJet expands its fleet and routes by acquiring British Airways low-cost subsidiary Go. In October 2002 the airline signs a deal to purchase 120 Airbus, which will facilitate the airlines ongoing growth strategy. Up until now, one of the cornerstones of the easyJets low-cost model has been to operate a single aircraft type fleet which so far has been the Boeing 737 series because uniformity means efficiencies in train ing, 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 about  10% compared to the current mix of aircraft, which will contribute to lower ticket fares. (See appendix 1 for Stelios Haji-Iannous other easyGroup enterprises). 2. The Mission Statement of EasyJet To provide our customers 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 markets on a range of European routes. To achieve this will develop our people and establish lasting relationship (see www.easyjet.com) The basis of an organisations mission statement 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 reflects several decisions about what kind of air service easyJet wants to provide. Evidently, its focus is on European routes, targeting business and leisure travellers alike. Furthermore, it aims to offer safe, good value transportation. easyJets mission statement also gives information 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 asà ¢Ã¢â€š ¬Ã‚ ¦.. Also, as the mission statement is the bedrock for the marketing plan it should be more quantifiable, as to how much market share easyJet aims to gain in the future, for example. 3. Competitive Analysis In order to analyse the airline industry in detail, it is useful to apply Porters five competitive forces. The threat of substitutes Minimal 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 comfort and flexibility of trains or cars (e.g. on the route Luton/London 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 entrants High 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 buy 4 new planes. The UK low-cost market 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 might prove more difficult as established; cash strong holiday firms like TUI are setting 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 suitable airports. Loss leader is required in order to join the low cost market. The power of suppliers The price of aviation fuel is directly related to the cost of oil, as an individual company easyJet does not have the power to alter this. Airplane manufacturers are concentrated in the industry, 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 suppliers The power of buyers Buyer 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 Internet sales. Price discrepancies can be easily found and exploited by the consumer, meaning that the operator must keep a regular check on prices. Need for customer loyalty because of low switching costs Customers have the Civil Aviation Authority (CAA) on their side which provides: 1. protection against the consequence of travel organiser failure for people who buy package holidays, charter flights and discounted scheduled air tickets; and 2. licenses airlines and ensures compliance with requirements of European and UK legislation relating to financial resources, liability and insurance of airlines.  [3]   Rivalry among existing firms Ryan air, BMIbaby, MyTravelLite and Buzz are major competitors of easyJet in the UK. Virgin Express, Hapag Lloyd Express, Germanwings and Air Berlin already are or might 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 financial data). A growing number of tour operators (like Thomas Cook and TUI) are selling air only scheduled seats to reduced prices  [4]  . British Airways and other traditional carriers out of the UK are competitors as well but on a lower scale as they target different market segments (see appendix 3 for more detail). 4. Marketing Mix Price Low 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 booked online. Product no-frills, point-to-point air services also car hire on its website (use of the Internet for bundling products) and links to other easyGroup websites (see appendix 1 for other easyGroup enterprises). Place/distribution Internet booking system (over 90% of bookings). Telephone reservation system. Promotion Highlights its number one position among Europes low-cost airlines (advertising strap line: Size matters!, slogan: the webs favourite airline) Advocates internal marketing, creative work done in-house. No Bullshit approach (Stelios), humorous, attention-catching campaigns (e.g. the giving away of free tickets on Gos inaugural flight and Stelios protesting in a orange boiler suit against an increase of airport fees at Luton in a branch of Barclays bank which owns the airport). 5. SWOT Analysis 5.1. Internal Analysis (S)trengths Image, 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 control system (NATS). (W)eaknesses Has no customer retention policy Has little or no scope outside of Europe. Lack of service, flexibility and business focus (such as frequent flyer programmes e.g.) make the low-cost model unappealing for most business travellers. The two drivers of growth, the focus on price and the focus on convenience (frequent flights, few connections, more nearby airports e.g.) are reaching 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 Analysis Opportunities Experts predict great potential for future growth in the next 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 whole  [5]. Reduced aircraft prices Threats Difficulties to expand as viable new routes from London are scarce. Competition is likely to intensify, given the saturated market and the shortage of other options  [6]. Increased competition is likely to lead to greater difficulties in demanding incentives from communities, like the very low fees easyJet received at Luton  [7]. Companies cut on business travel in times of economic downturn and because of new time-consuming security measures travel substitutes like videoconferencing are introduced  [8]. 6. Situational Analysis easyJet seems to be positioned very well with experts predicting excellent growth opportunities for the low cost-sector. Given the saturated market and the shortage of other options in the UK, competition is likely to intensify inevitably followed by consolidation, 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 cities  [9]  , and possibly as well on Eastern Europe. Focus remains on pricing Strategy and expansion of its route network. Promotion needs to persuade people that it is safe to fly and establish easyJet as Europes largest low-cost carrier (as easyJet is already doing in its advertisement: Size matters!) 7. PEST Analysis Marketing Plan PEST analysis for easyJet for the next 5 years The 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 factors Threat of war in the Middle East The Air Miles scheme is not considered as a taxable perk 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 factors Likelihood of increasing fuel costs, congestion and other environmental restrictions, as well as the prospect of higher security and insurance costs to reflect the risk of terrorism. As the recession is likely to last for some more time, business travellers will keep an eye on their travel expenses. Globalisation should continue to boost traffic in the long-term. The introduction of the single currency in Europe is likely to bring more business to easyJet as Europe becomes more integrated. (S)ocio-cultural factors To win over the French and German publics might cause problems as there appears still to be a general reluctance to use credit cards over the phone and Internet  [10]  . 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 factors A 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. Conclusion 8.1 Strategic issues facing the airline industry The 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 pave 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 longer term, trend growth may itself slow gradually 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 impact 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 de fensive mergers is limited 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. The  sector accounts for only around 5% of all intra European capacity, though the share  is much higher in the UK domestic market and on services between the UK and  Europe, closer to 20%. Further strong growth is expected over the next 2-3 years as  new operations start up, and new destinations are added to the existing carriers  networks. However as the UK market becomes saturated, these carriers are likely to  focus 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 completely 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 figure for the seven European majors at only 47%  [12]  . 8.2 easyJets Future easyJet 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 research 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 relevance to anticipate how it would respond to any strategic moves easyJet might make. By obtaining these information residual uncertainty would be limited, and the incumbent airline would be able to build a confident business case around its strategy  [13]  . 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 premium 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, tailored to different customers, have generally come to dominate  [14]  . 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. introducing 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, collect ing foreign currency on flights for charity etc., thereby giving its passengers a sense of psychological comfort and well-being  [15]  when 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) Appendices Appendix 1 Under 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 customer  [16]  and keep costs down. Furthermore, yield management can help to better use price in the marketing mix to best reach the most customers  [17]  . 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 years  [18]  . Appendix 2 Profit for Ryanair April September 2002 Year-on-year increase 151m à ¢Ã¢â‚¬Å¡Ã‚ ¬ ( £96m) 71% Source: Tran, M. (2002)  [19]   See http://www.ryanair.com/download/morganjune.pdf for actual data. Appendix 3 Compare Airline Traffic Data (Europe) Air Transport World http://www.atwonline.com/Pdf/worldairlinereport_2002.pdf Appendix 4 The airline market is currently being re-shaped by the expansion 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), available on http://www.internettravelnews.com/article/20223 Friday, 28th 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. à ¢Ã¢â€š ¬Ã‚ ¦. 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)