Strategic Management

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MANAGEMENT DEVELOPMENT INSTITUTE OF SINGAPORE IN TASHKENT (MDIST)

Course: Bsc (Hons) in Business and Marketing

Module: Strategic Management

Lecturer: James Tippins

Assignment Type: Individual Assignment

Due Date: 24th March 2012

S/N| Student Name (As reflected in Passport)| ID Number| Student Signature| 1| Makhsuma Muratova| B0800201| |

Submitted on Due Date (Yes/No): Yes
Word Count : 3485

TABLE OF CONTENTS 1. INTRODUCTION…………………………………………………………………….3 1.1. Mission Statement…………………………………………………………………4 1.2. Vision Statement…………………………………………………………………..4 1.3. Brand Values………………………………………………………………………4 2. INDUSTRY ANALYSIS ……………………………………………………………42.1.Rivalry among competing companies ..............................................................52.2. Threat of new entrants ……...........................................................................52.3. Threat of substitute products ……………………………………………………..52.4. Bargaining power of suppliers …………………………………………………...6 2.5. Bargaining power of customers…………………………………………………...6 3. SWOT ANALYSIS ……………………………………………………..................63.1. Strengths………………………………………………………………………….63.2. Weaknesses……………………………………………………………………….73.3. Opportunities……………………………………………………………………..73.4. Threats…………………………………………………………………………....8 4. CORE COMPETENCIES …………………………………………………………..8 5. BUSINESS STRATEGIES …………………………………………………………10 6. CONCLUSION AND RECOMMENDATIONS……………………………………12 7. APPENDICES………………………………………………………………………13 8. REFERENCE PAGE......................................................................................16“If you don't have a competitive advantage, don't compete.”| Jack Welch |

1. INTRODUCTION
A success history of the Europe’s second largest budget airline EasyJet began in 1995, when a young entrepreneur Stelios Haji-Ioannou leased two Boeing 737-200 aircrafts to initiate first routes from London’s Luton airport to Glasgow and Edinburgh (http://www.easy.com/PDFs/easyGroup_Brand_Manual.pdf., 2011) The core business strategy of a new EasyJet airline was borrowed basically from US’s Southwest Airlines. The company has adapted this low-cost airline strategy to European market by cutting operational costs and decreasing the complementary services like providing onboard food or not selling connecting flights (Williamson, 2002). Unlike its main competitor Ryanair which was mainly concentrated on flights inside the UK, EasyJet strategically pursued a market expansion and accomplished its first international route to Amsterdam in April 1996. To strengthen its market position in European continent, EasyJet has increased the number of base openings and acquisitions. In early 1998, the company has announced about an acquisition of a Swiss airline and became Geneva’s home carrier. Moreover, in 2002 EasyJet purchased its rival Go airline and inherited three new bases at London Stansted, Bristol and Midlands Airports. Openings of new bases in Italy, Spain, France and Germany between 2003 and 2007 also helped the company to gain a sizeable presence inside the continent (http://www.easy.com/PDFs/easyGroup_Brand_Manual.pdf., 2011). According to an annual report for the year 2011, Easy Jet was the United Kingdom’s largest airline by the number of passengers carried (54.5 million), having 19 bases, 204 aircrafts and 547 routes between 118 European, North African, and West Asian airports. Furthermore, the last year performance indicates that the customer satisfaction rate has increased by 79% and company’s total profit was 226 million pounds (http://2011annualreport.easyjet.com/overview/highlights.aspx., 2011) Besides going to Initial Public Offering in early 2000, Stelios has decided to extend the Easy brand to other businesses. So, today Easy Group is the owner of the ‘easy’ brand and licences it to all of the ’easy’ branded businesses, including EasyJet plc., Easy...
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