EasyJet strategy: SWOT and PESTEL analysis

EasyJet scheme SWOT and PESTEL synopsisThis all everyplacecompensate forget nominate a detailed analysis of EasyJets current unified appraisal or SWOT analysis. This leave aloneing identify its strength, weaknesses, opportunities and holy terrors. This al funky overhaul the companies decision makers understand where the organisation is at one time. A PESTEL analysis of the application exit examine the local, theme and global influences of political, economic, social and technological positionors to understand opportunities and threats well. This allow for provide an evaluation of the external credit line environment in which the beau monde ope prises. This analysis entrust bluelight the fundamental variety shows that the airline pains is undergoing, limitedly in defence to the turbulent environment it faces from exogenous rends (terrorism, oil damages, severe acute respiratory syndrome etc) and endogenous forces.Next we will workout Porters fiver Force s analysis of the pains and the increasing threat of other low- damage carriers (Ryanair, bmi botch up etc) and overly threats from the flag carriers (British Air dashs, Air France, KLM, Lufthansa etc). This will show how its critically take downtful for EasyJet that strategic alliance, size and technological innovation go for on its profitability. boilers suit the analysis will highlight the inherent threats and weaknesses suffered through and end-to-end the constancy, and in any case the splendour of innovation to maintain low greet utility, alliances and size to succeeder. Finally the report will examine the goal to which EasyJets current no frills strategy is the portion strategic fit to its organisation both in hurt of resource capability and melody environment.An Internal and corporate analysis in foothold of strength, weaknesses, opportunities and threats (SWOT) will assist in gaining an understanding of where EasyJet is currently in call of strengths and where improvement is required within the melodic phrase and what away(p) environmental threats it whitethorn face as well as what peeled opportunities atomic number 18 available to the company in the short and medium term. We will climb up by looking at strengthsEasyJet serves diverse ranges of European routes with principle activities in both Leisure and business markets, fliping 60 make out European routes. Its current cash tend puzzle is to a fault immobile, with cash flow from operating activities emergenced by 61 percent amid the sixsome months ended 31st environ 2003 to six months ended 31 March 2004. The business has as well enjoyed an cast up turnover and trading profits topicing in continuous substantial offshoot in underlying profitability over the last 7 forms (see table 1). This has resulted in a strong Balance Sheet the companies net pluss r for all(prenominal) oneing the record level of 724 one gazillion million (aided by retained profit mainl y).EasyJet is excessively Europes in the lead low- represent airline having completed a merger deal with Go to create Europes number one low- represent airline. gull Aw beness is a nonher strength that is attri saveable to the company In November 1999, selected as a business super give away by the Super crack Council, recognising EasyJet as an outstanding brand name. The companys Online booking do in October 1999 aided earnings gross revenue to pass the one million mark. This has lead to EasyJet customers enjoying Ticket little break megabucks this conquers the cost of issuing, distribution, extremitying and reconciling tickets. EasyJet in like manner enjoys inborn strengths in its operations in terms of efficient expend of airports by reducing turnarounds to 30 minutes and below, EasyJet hindquarters achieve extra rotations on the high frequency routes.EasyJet appears to befuddle upcountry strengths in terms of brand aw atomic number 18ness, cash flows, and o perational efficiencies. But what atomic number 18 the internal weaknesses suffered by EasyJet? The master(a) weakness is the perception of low pure tone low cost ignore as well be seen as low quality utility than that offered by the established national airline i.e. British Airways. Also, suffers weakness in the heavens of hospitality in terms of on board offer of assoil Lunch, the eliminating of free catering on board may result in loss of latent customers. The existing competition also break strong brand image globally, EasyJet is recognised nationally and within the European markets, that, national airlines uniform British Airways is recognised universe abundant and has stronger brand aw beness.EasyJet also operates a flat management structure, which may lack a stately discipline that is needed as the organisation grows. The approximation of remote on the job(p) can also result in co-ordination and control weaknesses. It is difficult to organise the unmarried employee beca custom in principle they operate independently of each other. Its also hard to monitor the performance of each idiosyncratic.So having considered the internal strengths and opportunities above, what ar the potential opportunities available to EasyJet and what argon the threats faced by EasyJet both from within the Airline industry and as a result of the conception economy it egotism. Weaknesses identified earlier could also offer potential opportunities in terms of ripening of brand aw beness globally. The EasyJet brand is established in the European market, but brand aw arness is required outside the continent. in that respect argon potential opportunities in terms of new routes and refinement of operate offered, EasyJet has already launched a number of new European routes, how about expansion into the Asian Pacific? Undertaking market disruption to globalisation expanding outside the European market will be key to continuous sweetener of business performan ce.Follow on from market expansion will also create opportunities for new facilities or services Free Lunch offer on board catering facilities to compete with mainstream airlines. The incr relieve growth of world touristry will offer opportunities in terms of undertaking conjugation venture with local/foreign travel companies hence, Going places and Thomas Cooke argon already providing such services to growing number of holidaymakers each year. Finally, opportunities may also exist in the atomic number 18a of innovation and alliances, how about a joint venture scheme with Ryanair to maintain and enforce the low cost rivalrous advantage.Figure1 EasyJet SWOT AnalysisHaving considered the possible future opportunities what are the potential threats that EasyJet take to bear in mind? Firstly, threats in terms of new existing competition. Ryanair continues to cut down cost, which enables it to persist dark knows aggressively. Also, mainstream airlines are now lowering expatria tions to engage in outlay competition. A nonher major industry wide threat is the volatility in price of fuel Oil price record high of $53 a barrel. this was the headline in the business pages of all the newspapers last November.EasyJet also faces potential threats in terms of odd tragic events like September 11th. Potential threats in terms of ever-changing social trends like holidays outside Europe (many now want to vex the eastern cultures and travel to holiday destinations like China and Japan) and also locomotion via the EuroStar to Paris etc. Potential threats of economic recession, since air travel is efficaciously a commodity product, it is recession prawn. And, finally threats of any takeover bids from national airlines.Figure 2 Five Forces Model ACCA Paper 3.5 (2001)Porter explains that on that point are five forces inherent in a market, which will together with determine the intensity of competition and profitability of EasyJet and the airline industry. The true first is the threat posed by new entrants, as with the European deregulation of mercenary aviation and the emergent of low cost carriers. The gage is the threats from substitutes, rail travel v air travel, the growing demand in Eurostar and cruses. The third force is the threats from the bargaining power of buyers, is this strong for both EasyJet and the entire airline industry with a swelled number of alternative suppliers, hence, the aggressive pricing strategy. This results in a very strong competitive competitor in the industry. This is escalate as a result of little or no note in the service offered. Finally the threats from the suppliers bargaining power, this is very strong in the airline industry for two reasons, one is highly skilled labor party can command a very favourable terms and second is the price of oil.All of those (political, economic, social, technical, legal and environmental) factors will to some cessation reach to the airline industry.POLITICAL Follow ing the European deregulation of commercial aviation, a fleet of low cost carriers are reshaping the local airline landscape. Ryanair uncompromisingly fought its way into the market with an aggressive pricing strategy.ECONOMIC the travel industry is vary recession prawn and also very sensitive to changes in oil prices. Since the events of September 11th the airline industry suffered heavily, stocks plummeted and ticket prices are at all time lows. The world economy is however, now on the up post September 11th. Consumers are optimistic and the travel and tourism industry are now booming again.SOCIAL changes in consumer taste sensation and lifestyle represent both opportunities and threats for the industry. Opportunities in terms of worldwide destinations are now popular with holidaymakers and also the growing trend in global business ventures, e.g. major banks and insurance companies relocation call centres in Asia. The threats are in terms of alternative holidays Disneyland Par is via Eurostar (Euro tunnel) and PO cruise.TECHNICAL Changes in retailing methods as such ticket gross gross revenue via the Internet is now a common place in air travel, passengers receive an electronic mail containing their travel details and booking reference when they book online. Paperless operation, the management and face of the company are undertaken on IT systems, which are accessed through secure servers provide flexibility in the running of the airline. The maturement of the next times aircraft will also lead to technological opportunities in term of fuel efficiencies. well-grounded The European deregulation of the commercial aviation provided both major strategic threats and opportunities, the national mainstream airlines faced severe price competition from discount carriers. Threats are also in terms of legislative environmental laws regarding pollution and use of more environmentally friendly fuel, which are at premium prices. environmental The energy sources used, namely oil has vast ecological/environmental implications. The threats are in terms of fines and rise in cost of raw materials.A no frills strategy is often associated with low cost airline companies like EasyJet. This form of strategy combines a low price, low perceived service benefits (no free lunch) and a focus on a price-sensitive highly competitive market segment. This strategy is focused on keeping costs down and EasyJets policy of no free lunch and efficient use of airports by limiting turnaround to 30 minutes. Back in 1995 when EasyJet was lunched it was canted by most to fail with its no frills strategy. except, by year 2000 it has not only managed to survive but also increased its market offices and assets of aircrafts to 74 and servicing 105 routes and carrying over 20 million passengers a year. So the strategy has been very no-hit for EasyJet and appears to acquit been the correct strategic decision.on a lower floor the surface of EasyJets cosmetic cost savi ngs of not oblation free in- career refreshments or different first, business and economy classes, was a ism of cost saving that permeated through the entire organisation. The 2002/03 annual report reconfirmed this business model of the airlineDense point-to-point network to allow touching of major airports with large catchments areas with high level of frequency, as this will be attractive to business and leisure travellers.A strong and visible brand to create a high level of awareness with consumers. Supported by advance(a) and hard-hitting advertising.Dynamic fares with a simple structure and also ensuring that it are the cheapest fare on the route. Therefore, demand led with proprietary support management system. degree centigrade per cent direct selling of fares over 90 per cent of sales are online. This eliminates the need to any commissions to external sales agency.Highly employ fleet of aircrafts that are large, modern, efficient and relatively environmentally friend ly. This results in high levels of asset utilisation and reduced unit costs.Finally, the key to sustaining high levels of growth is the scalability of the operations. This also reduces the marginal cost of incremental growth increasing get over brings valuable economies (Johnson, G., Scholes, K., Whittington, R., (2005).Another price- mingyd strategy is the hybrid strategy this seeks to achieve an factor of differentiation and a price lower than that of competitors. Implementing this strategy successfully depends on EasyJets ability to save enhanced benefits to customers over its competitors together with low prices. However, if EasyJet could significantly differentiate its service over its competitors and so it could obtain high prices. Therefore, the low cost strategy is the ideal strategic fit to its environment. yield perceived low price with perceived added nurture can be a highly successful strategy but one that requires innovative thinking.EasyJets competitive advanta ges via low prices are sustained in a number of ways. EasyJet in its pursuing of low-price strategies may be prepared to acquit the reduced margin either because it can sell more fares than competitors. EasyJet may be prepared and has to a large extend engaged in price war with competitors via its lower cost structure (economies of scales delinquent to its big operations) and also has the financial resource capability to fund short to medium-term losings with the aim of driving out competitors in the longer terms. A primeval example of this was the subsequent takeover of Go by EasyJet. Price wars are becoming more prevalent as traveller use the Internet to compare prices and shop around. EasyJet has cost advantages through company peculiar(a) capabilities, which drive down costs throughout the value orbit.Porter comments on cost leading as the low-cost producer in its industry must find and exploit all sources of cost advantage (Porter M.E (1980)). We will consider the valu e chain for EasyJet in more detail afterward in our discussion. Cost advantages might be achieved because of EasyJets efficient use of airports. This will require a mindset where innovation (in cost reduction) is regarded as essential to survival. EasyJet is an international example, The introduction of Airbus A319 aircraft, combined with the retirement of old generation Boeing 737 aircraft, will result in a two-type new technology fleet, which will commonality and lessen complexity and de pop offr high level of asset utilisation and reduce unit costs. Finally, EasyJet has sustained its price-based advantage by think on market segments where low fares are critical and valued by customers.EasyJets first generic strategy is to achieve an boilers suit cost leadership in the low cost airline industry. Therefore, it is vital for EasyJet to have a thorough comprehension of their costs and cost drivers. EasyJet is forever essay to attain a cost level that is low relative to its competi tors.EasyJet cost efficiency is achieved in a variety of way as shown in the following diagramThe success of low-fare (cost) strategy is primarily dependent on the maintenance of a low cost base. This is critical for EasyJet having analysed the competitive rivalry position in the industry. With Ryanair maintaining high margins despite reducing yields through stern cost management. Lower costs are the only competitive advantage in the short-haul economy sector as air travel is effectively a commodity product. It is also anticipated that Ryanair will continue to lower costs, which will allow it to continue to engage in a price war, by lowering fares aggressively. Managing for value involves managing both value activities and cost drivers. This involves EasyJet retaining money from operations hence, a healthy Balance sheet in terms of retained profits. Significant investment in assets and managing financing costs. Funding strategies developments is all the way important in that the nature of funding must be appropriate and compliments the low cost strategy of EasyJet, by ensuring that interest costs are low. Strategies are by and large determined by the extent to which they de extendr outmatch value to both customers in terms of being scrap in the marketplace (leading low cost airline) and also to provide value to shareholders. EasyJets no frills strategy does not only mean a cut in Cabin crew and denial of food, but also allows for a faster pre-flight preparation, at that placeby reducing the time grounded as well maintaining fare.As funding from operations are profitly a major contributor to value creation. In the long term, this is concerned with the extent to which the organisation is operating profitably. confuse below provides an analysis of EasyJets sales revenue and profitability ratio since 1998. Investments in assets are also key consideration in value creation in that consideration of the extent to which assets and working working capital are being utilised. EasyJet appears to have developed competences in supporting much higher levels of business from the alike(p) asset base than other rival airlines. This affects value creation as followsThe cost of capital investmentThe management of the element of working capital Table 1 Sales and Trading Profit of EasyJetMost theories argue that strategic success and improved wealth generation stem from two strategies. The first is to reduce the bottom line costs of operation (low cost strategy) and the second is to increase the value of the organisation and its reputation to customers, so that they will demand more or pay more for what they receive (differentiation strategy) (ACCA Paper 3.5 (2001)). Porter through the use of the value chain illustrates how resources should be utilised to enhance least-cost payoff or differentiation strategies (the generic strategies suggested by Porter). The value chain analysis will show the total value added by the airline industry and EasyJet. All airline companies within the industry will have sympathetic value chain, which will include activities such as obtaining fuel, designing fare structures, airport facilities, developing co-operative agreements, and providing customer service. Value chain analysis can provide important insights into what management need to focus on strategically.In terms of analysis, EasyJets distribution activities are important in terms of e-commerce, as EasyJet like to consider itself as the webs favourite airline. standardization in its activities as an airline leads to both economies of scale and a simpler product, which is cheaper and easier to distribute. The price of EasyJets tickets various as a function of the number of seating remaining, the time until the flight, and historical trends. This is done in baseball club to maximise the yield from a flight, as many of the costs associated with running a flight are fixed relative to the number of passenger on board. have management is a form of risk management and therefore, adds value. The sales offset is efficient, as EasyJet sells directly to customers, instead of victimization external sales teams. It has been streamlines by using e-commerce, firstly by telesales and now through the Internet.Marketing and sales will involve making customers aware of EasyJets services are price information and also selling. This will involve retention of best sales pot back up by HR management, engineering support in terms of maintenance of the web page supported by technology development to ensure that web site has the latest prices and route and flight information. This needs to be updated constantly as this will be a live system. EasyJet manages its sales process extremely efficiently, its sells its tickets directly. Previously it used telesales and now sales are through e-commerce web site. As Internet dealings have a lower cost associated with it EasyJet encourages its customers to book on-line by fling them a discount for on-line ticket reservations. Savings made from e-commerce is other source of value creation.In terms of competitive advantage, the internet offers boilers suit cost leaders new abilities to reduce costs in primary activities such as marketing (i.e. e-commerce) and support activities such as fir infrastructure (e.g. quick commit processing). EasyJet through its use of an overall cost leadership strategy can use internet-based technologies to reduce value chain costs in a variety of ways On-line play and order processing to eliminate the need for sales calls and decrease sales force expense. Another benefit of Internet technology is lower transaction costs at multiple levels in value chain activities. much(prenominal) lower costs benefit EasyJet initially as innovation is rewarded. However the sustainability of competitive advantages may be problematic as rivals copy successful strategies, EasyJet will loose its initial advantages. And finally, service, activities that ensure that customers enjoy their flight by providing friendly on board service and assisting traveller with any special needs requirements.In terms of support activities, EasyJet takes advantage of technological developments in order to reduce costs. EasyJet also have a reputation for paying low wages in line with its low cost strategy. procurement and firm infrastructure as a support activity does not add much extra value. In terms of strategy, many factors are outside the control of the company, such as use of high quality components and low defect rates for its aircrafts.This analysis outlines for EasyJets management how individual activities may be altered to reduce costs of operation or improve the value offered to customers. Those changes will ensure that EasyJet sustains its current market share and position and also increase margin. EasyJet may be especially total at outbound logistics lined to its marketing and sales operations and supported by its technology development. It i s peradventure not as good in terms of operations and its inbound logistics. This will assist management to answer as to what EasyJet should be concentrating on and what requires de-emphasising or even outsourcing. EasyJets overall cost leadership strategy uses low costs at each point in the value chain to lower costs. The customers of EasyJet have been using the Internet for making bookings. In addition to that, EasyJet has been offering no in-flight meals, no in flight movies. Also, only one type of aircraft is used, in order to minimise maintenance costs.The concept of the value chain is particularly reusable in understanding an organisations strategic capability since its concentrates on value activities and the linkages between activities rather ran just resources. Therefore, capability is strongly related to to the way that resources are used and controlled. The linkages with the value chains of channels and customers which are the essence of EasyJets capability and which can protect its market leadership and maintain cost leadership competitive advantage from competitors. This section we will investigate EasyJets resources as a means of assessing the organisations strategic capability.Analysis of financial resources in order to understand the strategic capability of EasyJet will need examination of financial capability and performance. Table 1 shows that EasyJets sales has increase year on year since 1998, with profit and gross margins also experiencing a positive trends. The company has also grown in terms of its acquisitions of GO and also increase in purchases of its own aircrafts. EasyJet also has a strong cash flow position primarily from its policy to retain profits and reinvest it back to the business. A balance scorecard approach is need to effectively conclude a equilibrise perspective on EasyJets resource capability in order to ensure that the low cost strategy is supported and isCohabitation The end of sexual unionCohabitation The end o f wedding ceremonyIntroductionThe following essay is aimed at discovering whether cohabitation has literally displaced wedlock. It will focus on the processes of cohabiting as well as conjugation, in brief touching on their historical backgrounds as well as the trends for each of the processes in different countries. Immediately after the war, trades union became practically ecumenic phenomena but apparently, its popularity has exasperated towards the end of the twentieth century. Bumpass and Lu (2000) and Teachman, Tedrow and Crowder (2000) explain that patterns of family formation and also radioactive decay are changing in the United States. She clearly cites an increase in divorce, cohabitation and non marital children which clearly shows a shift from conventional uniting. accord to Murphy and Young, (1999), espousals has been in steady decline since the early 70s in the United Kingdom. A McRae (1999) point out that wedding party in 1995, which was 322,000, is panor ama to be the lowest on record since 1926. As the marriage rate dropped, so did the remarriage rate resulting in a steady rise of cohabiting. (Morgan 2000)Cohabiting correspond to Marshall (1998) refers to an arrangement whereby couples who are not legally married live together as husband and wife. In view of the above definition, the term, not legally married brings in another dimension as to the genuineness of cohabitation. This leads to the idea of common law marriage. There seems to be a considerable misconception of the idea of common law marriage, with some authorities and harmonise to Fairbain, (2009) there is no specific legal status for what many refer to as common law marriage. She also points out that many cohabiting couples are insensible of this fact. On the other hand, marriage, as define by Horton and Hunt defined marriage as the approved social pattern whereby two or more persons establish a family. Majumdar takes it unless by defining marriage as a socially s anctioned union of phallic and feminine or as a substitute(prenominal) institution devised by party to sanction the union and mating of male and female for purposesof establishing a household, entryway into sex relations, procreating and providing care for the offspring There appears to be a clear distinction between marriage and cohabiting, judging from the definitions above which helps me conclude that they are not one and the same thing. The question which I will crusade to answer is whether on is displacing or replacing the other. Shaw and Haskey, (1999) seem to concur with the idea of a clear dichotomy as they point out that there has been a major trend towards a decline in marriage and a rise in cohabitation.Hasky, (1999) also points out that marriages popularity rose throughout the 1950s and the 1960s but notes that towards the end of the century, it fell, giving rise to cohabitation. It appears there was a shift in family formation from the traditional marriage to coha bitation. To further support the prevalence of cohabitation, Bramlett and Mosher, (2002) confirm that the increase of cohabitation is well documented exhibit that the majority of newly weds have cohabited before their first marriage. Levidon (1990) also argued that consensual unions, (cohabitation) appeared to constitute a new type of union. However, he mentions that the process was transitory, which points to the fact that marriage still was seen to be the end goal. A major development however was that there was more recognition of in dress unions and as a social institution. (Haskey 1999)Kiernan, and Estaugh (1993), came up with the idea of nubile cohabitation which involved young people living together either as a prelude to or as an alternative to marriage. This was further elaborated on by Bumpass, refreshed and Cherlin (2001) beautify, Huang, Bergstrom and Manning (2005) who cited one of the key reasons why cohabitation was on the rise, as a way of testing out a relationship and determine compatibility. Research however found out that there is a positive correlation between cohabitation and marital disintegration. (DeMaris and Rao 1992, Teachman and Polonko 1990 and Schoen 1992 cited in Smock (2000). They also found out that the link between cohabitation and marriage failure is complex, with other factors like, race, sexual memoir and ethnicity compete a significant influence. (Phillips and Sweeney 2005).According to Casper and Sayer (2000) and dark-brown and Booth (1996), cohabiters, are imposing by factors like excogitates to marry It is noted that most of the cohabiters eventually plan to marry but not all cohabiters enter into cohabitation with marriage plans. (Manning and Smock 2005). In this way, cohabiters treated their cohabiting as an initial stage of the marriage process which clarifies that they did not see it as an alternative to marriage and likewise, those without marriage plans also viewed cohabitation as part of courtship or single hood. According to Brown (2004), cohabiters with marriage plans view cohabitation as a semi marriage and as a matter of fact, they share the same relationship quality as the married couples. Another factor that needs to be looked at is the individuals cohabitation history which researchers say in very significant. It was proven that women who cohabited only once with the same partner, being intimate, had the same relationship stability as those who never cohabited, (Teachman 2003). On the contrary, young adults who had multiple cohabiting partners are likely to encounter marital instability, (Teachman and Polonko 1990), (DeMaris and McDonald 1993). It is worth pointing out though that they concede that individuals who had multiple cohabitation before marriage could possibly have enough experience to enable them to make better marriage survivals.Duncan et al (2005) states that cohabitation is often equated with do it yourselfand is no longer restricted to particular social chemic al groups. In line with this impression, Manning, Smock and Majumdar (2004) and Phillips and Sweeney (2005) maintain that race, and ethnic differences in cohabitation are likely to have an impact on cohabitation. It was noted that cohabitation had a negative effect on Whites marital stability but no(prenominal) on Blacks. This is likely so because of the view each ethnic group has on cohabiting. It was further observed that amongst cohabiting couples, Blacks had weaker marriage plans than Whites. (Manning and Smock 2002) Brown (2000) also argued that Blacks were less likely to go through to the actual marriage even with marriage plans.Between 1986 and 1990, there was a dramatic rise in cohabitation in Britain. 29% of unmarried females under 60 were cohabiting in 2001 and 2002. This was a three fold increase. As cohabitation rose, children being born to cohabiting couples were estimated to be over 25% by the beginning of the twenty first century. The fall decline of and delay in ma rriages, have all given rise to the phenomenon of cohabitation. espousal does not stand out as the only means of lading for life since some couples choose to cohabit, citing reasons like less commitment and the ease of opting out if things do not work well. (Kieman 2004). According to Duncan et al (2005) the shift from marriage to cohabitation suggests that individuals have found an option which meets their personal needs and has less or no hassles in terminating.Having looked at the history and trends of the two processes, marriage and cohabitation, this paper will focus on the individualisation theory. According to Beck, (1992) and Giddens (1992), we have entered a late modern era of de-traditionalisation and individualisation. Financial stability, education and preparedness through the welfare state tend to give individuals the latitude to fly the coop away from traditional customs. According to Lewis (2001), the pursuit of self fulfilment and individual happiness and freedom has brought up changes on the view of family. While the traditional institutions are still valued, there is less emphasis on marriage vows or private commitments and more emphasis on self cyphers. The project of self, places an emphasis on individual self-fulfilment and personal development, comes to replace relational, social aims. (Duncan and smith 2006) The prevalence, historically, of economic and legal inequality, and the belief of there being accepted patterns of behavior is now getting weaker. (Lewis, 2001, p3) According to Lewis (2001), individualisation is thought to be a formulation of freedom of choice and personal preferences which competes with social structural traditions. However, in the eyes of the traditionalists, this may be viewed as a counter heathen revolution Beck (1992( suggests that social structures of gender, class, family and religion are gradually weakening due to individuals becoming more reflexive in making own choices, resulting in the creation of their own biographies. As a result, relationships now focus on individual fulfilment and consensual love, with sexual and emotional equality, substituting formal unions which have been historically prescribed within set gender roles. (Bauman, 2003, Duncan and metalworker 2006).With reference to Majumdars definition of marriage, there is particular mention of it being a union of male and female or as a secondary institution devised by nightclub to sanction the union and mating of male and female for purposesof establishing a household, entering into sex relations, procreating and providing care for the offspring. However, with reference to individualisation, the ruler nature of the marriage institution is challenged resulting in sexuality being largely freed from institutional, normative and patriarchal control as well as from reproduction. (Duncan and metalworker 2006). This notion has led to the acceptance and rise of same sex relationships as confirmed by The Civil Partnership Act 2004 which was passed and came into effect in December 2005 created civil partnerships which gave same-sex couples who entered into them the same rights and responsibilities of marriage.From a feminist perspective, Lewis (2001) would argue that historically, marriage has reinforced the limiting of the self development of women. Marriage was seen as a restrictive union and could dictate emotions, feelings and behaviour. Cohabitation, from a different perspective could then be argued to be a form of waiver for women. (Morgan 2000). Marriage was viewed as being restrictive and confining, thereby limiting independence and autonomy. Morgan argues that marriage is an clear life without binding commitments. This then presents the idea of cohabitation as a operable alternative which affords people choice to determine their own conditions for the establishment and dissolution of a relationship, Morgan (2000).The emergence of this contemporary family has been viewed positively and nega tively. According to Giddens, (1992) and Weeks, (2001), the greater miscellany of lifestyles and the opening up of choice leads to democracy in personal relations, and liberation from oppressive institutions. On the contrary, the work of Zygmunt Bauman (2003) and Francis Fukuyama (1999), stresses that the breakdown of traditional ties leads to a decline of families and the moralities once maintained by them this demoralisation leads to individual alienation and social breakdown. Maslow (1954) maintains that people who engage in self actualisation were concurrently laissez-faire(a) and altruistic. In order to meet their needs, individuals moving towards self actualisation, became higher selves and according to Maslow, this is healthy selfishness (p.156). In this process, the healthy self focuses more on the self Kilpatrick (1975)According to the pioneers of the individualisation theory, Becks and Gersheim (2002), society has shifted away from traditional structures where, people n o longer have pre-given life worlds and life trajectories. (Heath, et al 2007). Generally, individuals are no longer expected by society to follow a set family pattern. According to Beck, (1992) this notion has altered the previous accepted family structures resulting in the dissolution of the social foundations of the nuclear family as more emphasis is placed on the family of choice Fukuyama (1999) argues that the institution of marriage has previously been viewed as the bedrock of society but due to the emergence of the family change and freedom of choice, traditional ties have weakened and as a result, there has been family degeneration. Gender roles have also shifted since from the categorization of men as breadwinners and women as house makers. The major change appears to be women emancipation advocated for by the womens movements and this has altered societal and demographic values. ready participation by women on the labour market has significantly changed the notion of a fa mily unit by bringing in more choice and autonomy women did not have in the past.The Legal Position of Cohabitation in BritainHeterosexual cohabitation has been socially and universally accepted as an alternative to marriage in the UK for over two decades but very little has been finalised as regards legal rights of the cohabitants is debatable. (Duncan et al 2001) The issue with cohabiting is that while it can be registered as a Civil marriage, it does not attract the same legal rights and privileges of a marriage. Traditionally, marriage has been regarded asBauman, Z (2003) Liquid Love on the infirmity of Human Bonds. Oxford, Polity.Beck, U. (1992) Risk Society Towards a smart juvenileity, London, Sage.Bumpass, L., Lu, H. (2000). Trends in cohabitation and implications for childrens family contexts in the United States. Population Studies, 54, 29-41.Duncan, S. and Smith, D. (2002) Geographies of family formations spatial differences and gender cultures in Britain Transactions ground of British Geographers, 27, 4, 471-493.Fukuyama, F. (1999) The Great Disruption Human nature and the Reconstitution of neighborly Order, New York, Free Press.Giddens, A. (1992) The Transformation of Intimacy Sexuality, Love and Eroticism in Modern Societies. Cambridge, Polity Press.Horton, P. B. and Hunt, C.L. (1984) Sociology. 6th ed. Singapore McGraw Hill Book CompaniesKiernan, K. and Estaugh, V. (1993) Cohabitation Extra-marital Childbearing and Social Policy,Joseph Rowntree Foundation/Family Policy Studies Centre.Lewis, J. (2001) The End of Marriage? Individualism and Intimate Relationships, Cheltenham Edward Elgar.Marshall, G, (1998) A Dictionary of Sociology cited on http//www.encyclopedia.com Accessed 20/11/2009.Weeks, J. (2001) Same Sex Intimacies Families of selection and Other Life Experiments. London, Routledge.Teachman, J. Tedrow, L and Crowder. K. 2000. The Changing Demography of Americas Families. Journal of Marriage and the Family 621234-1246.