Easyjet Case Study
Easy Jet Case Study
Corporate success of EasyJet
EasyJet focuses on a cost leadership strategy and differentiation strategy. Central to the 'easy' philosophy is yield management. The Easy model provides to the customer functional services at the lowest possible price, on the basis of the "real value" of the basics of the service provided, avoiding any unessential frills. EasyJet was launched in 1995 and was the pioneer in the economical airlines segment. The PESTEL analysis of EasyJet airlines shown in figure 1 suggests that all the external factors were favourable for EasyJet which contributed to its corporate success. Also in the industry lifecycle EasyJet is in the growth phase where it can increase sales, reduce costs and make profit.
Figure 1 – EasyJet PESTEL Analysis
Figure 2 – EasyJet Industry Life Cycle
The struggle of competitors to imitate the ‘easy strategy’
In the airline industry, there is high price elasticity, high fixed cost and low marginal costs which is perfect for the ‘easy’ apporach. The incumbent firms were grown complacent and were not prepared for the arrival of dynamic new entrants like EasyJet. By launching and growing new businesses quickly, easyGroup won the market share from these incumbents through a combination of low cost and easy-to-access services stragey. EasyJet has shown substantial organic growth since the day it came into being in 1995. Although easy group's businesses were based on the low price model, they still faced competition from established players. Throughout the years, Easy Group strategy kept a clear readability built around some principles such as low-cost approach, identifiable and recognizable, simple communication strategy, mainly focused on price and entertainment, constant expansion, development of new strategic business units in close to the customers market, with a core focus on travellers and this model was not easily imitable for other national flagship airline operators as their primary focus was
Corporate success of EasyJet
EasyJet focuses on a cost leadership strategy and differentiation strategy. Central to the 'easy' philosophy is yield management. The Easy model provides to the customer functional services at the lowest possible price, on the basis of the "real value" of the basics of the service provided, avoiding any unessential frills. EasyJet was launched in 1995 and was the pioneer in the economical airlines segment. The PESTEL analysis of EasyJet airlines shown in figure 1 suggests that all the external factors were favourable for EasyJet which contributed to its corporate success. Also in the industry lifecycle EasyJet is in the growth phase where it can increase sales, reduce costs and make profit.
Figure 1 – EasyJet PESTEL Analysis
Figure 2 – EasyJet Industry Life Cycle
The struggle of competitors to imitate the ‘easy strategy’
In the airline industry, there is high price elasticity, high fixed cost and low marginal costs which is perfect for the ‘easy’ apporach. The incumbent firms were grown complacent and were not prepared for the arrival of dynamic new entrants like EasyJet. By launching and growing new businesses quickly, easyGroup won the market share from these incumbents through a combination of low cost and easy-to-access services stragey. EasyJet has shown substantial organic growth since the day it came into being in 1995. Although easy group's businesses were based on the low price model, they still faced competition from established players. Throughout the years, Easy Group strategy kept a clear readability built around some principles such as low-cost approach, identifiable and recognizable, simple communication strategy, mainly focused on price and entertainment, constant expansion, development of new strategic business units in close to the customers market, with a core focus on travellers and this model was not easily imitable for other national flagship airline operators as their primary focus was
References: Angwin, D., Cummings, S., & Smith, C. (2011). The strategy pathfinder: Core concepts and live cases (2nd ed.). West Sussex, United Kingdom: John Wiley & Sons Ltd. Feldman, J. M. (1997). Easy does it on easyJet. Air Transport World, 34(1), 64-65. Retrieved from http://search.proquest.com/docview/224304900?accountid=14782 Jackson-Proes, A. (2002, Apr 08). Easy group has vision for cinemas. The Daily Telegraph Retrieved from http://search.proquest.com/docview/317591442?accountid=14782