Strategy Easyjet Essay Example
2.1 Strategy
EasyJet has adopted its business model from Southwest Airlines from the United states. It is adapted to the European market trough further cost-cutting measures. Important points in this business model are high aircraft utilization, short times on airport, charging for not needed extras and put much efforts in keeping the operating costs low. The key words in the strategy of Easy jet are “low price and no frill” based on Porter’s generic strategies (2.1.1) (appendix XX). This states for:
• Simple price, simple service
• Unified aircraft and cheaper airports
• Maximize utilization and internet
• Strong branding and charm of entrepreneurship
• Economy of scale and dense networks
Low price and no frill business model is simply said that there is a focus on the costs of the operation of the airliner, cost focus strategy. One of Porter’s generic strategies (figure xx).
Target Scope / Advantage Low cost Product Uniqueness
Broad (Industry wide)
Cost leadership strategy (no frills) Differentiation strategy
Narrow (market segment)
Cost Focus strategy (low cost)
Focus strategy (differentiation)
Figur XX Porter’s generic strategy
Low price strategy can be defined as the pursuit to maintain a lower price than the competitors. This must be achieved with similar products and services as offered by the competitors. EasyJet believes they can manage this strive strategy. To manage it two choices are made by the company. They have to find routes or services where the competitors are not interested in. The other one is to find paying and price sensible customers for those routes and services. EasyJet succeeded in this while they operates many routes which other big airlines do not. They also succeeded in the quest to find paying customers for this segment. The customers are both business and low budget travellers. The idea is that maximum utilization of the aircraft will be achieved with just one class. EasyJet aims mostly at price
EasyJet has adopted its business model from Southwest Airlines from the United states. It is adapted to the European market trough further cost-cutting measures. Important points in this business model are high aircraft utilization, short times on airport, charging for not needed extras and put much efforts in keeping the operating costs low. The key words in the strategy of Easy jet are “low price and no frill” based on Porter’s generic strategies (2.1.1) (appendix XX). This states for:
• Simple price, simple service
• Unified aircraft and cheaper airports
• Maximize utilization and internet
• Strong branding and charm of entrepreneurship
• Economy of scale and dense networks
Low price and no frill business model is simply said that there is a focus on the costs of the operation of the airliner, cost focus strategy. One of Porter’s generic strategies (figure xx).
Target Scope / Advantage Low cost Product Uniqueness
Broad (Industry wide)
Cost leadership strategy (no frills) Differentiation strategy
Narrow (market segment)
Cost Focus strategy (low cost)
Focus strategy (differentiation)
Figur XX Porter’s generic strategy
Low price strategy can be defined as the pursuit to maintain a lower price than the competitors. This must be achieved with similar products and services as offered by the competitors. EasyJet believes they can manage this strive strategy. To manage it two choices are made by the company. They have to find routes or services where the competitors are not interested in. The other one is to find paying and price sensible customers for those routes and services. EasyJet succeeded in this while they operates many routes which other big airlines do not. They also succeeded in the quest to find paying customers for this segment. The customers are both business and low budget travellers. The idea is that maximum utilization of the aircraft will be achieved with just one class. EasyJet aims mostly at price