EasyJet: A No Frills Airline

Topics: Airline, Low-cost carrier, Strategic management Pages: 12 (3055 words) Published: November 1, 2012
|EasyJet-A ‘No Frills’ Airline | |Report | |Md. Nazmul Hasan | |

Executive Summary: EasyJet is the leading in UK and fourth largest airline in Europe. The Report is intended to identify following key points;

• The competitive strategy EasyJet used in order to achieve current competitive position

• Critically evaluate the competitive strategy EasyJet Used and

• Based on finding this report recommend few points in order to sustain their position in the competitive market

Main findings: EasyJet Perused a cost leadership strategy as Porter (1980, 1985) suggested. In this study, the report found following strategy that EasyJet used in order to achieve cost leadership;

• EasyJet Developed E-business Model that help them to achieve cost leadership

• In order to cutting cost down they offer Ticketless Travel main operate paperless office

• Their Simple Product and Service Design help them achieve the strategy

• Easy Jet’s do not offer free food and customer have to pay for additional service

• Rapid turnaround time of Easy Jet’s plane helped them reduce cost

• Maximum Utilization of their assets e.g. Aircraft, provide opportunity to minimize cost

• Finally, Efficient Use of Airport helps them achieving overall cost leadership in the market.

This report has concluded by drawing following recommendation;

• EasyJet should focus on Cost Cutting, at the same time they should develop new products and service

• They should Operate through Major Airports

• EasyJet should offer More Customer Benefits and

• Part of their Extension EasyJet should extend operation outside Europe

Today's dynamic markets and technologies have called into question the sustainability of competitive advantage. (Porter,1996). Porter (1996) argues that operational effectiveness, although necessary to superior performance, is not sufficient, because its techniques are easy to imitate. In contrast, the essence of strategy is choosing a unique and valuable position rooted in systems of activities that are much more difficult to match. Quinn (1980) stated that “A strategy is the pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole. In this report, It has been Identified how EasyJet a no frill Airline company used competitive strategy in order to gain sustainable competitive advantage in European Market, particularly in UK.

Company’s Background

EasyJet is the largest in UK and fourth biggest European Airline carrier based on Luton, UK. EasyJet started their Business in 1995, however, a rapid growth give them this current position. Now, EasyJet flies to 122 airports in 29 countries and 500 routes. The “no frills” airline currently has 193 planes and aims to increase this to 220 by the end of September 2013. More than 50% of its customers are from outside UK, which makes EasyJet truly a pan-European airline. EasyJet recently revealed a near-trebling in annual pre-tax profits, surging to £154 million in the year to September 30, 2010 – an increase of £99.3 million an increase of 11.5%. EasyJet voted ‘best low cost airline’ by readers of Business Traveller many times.

Objective: The objective of this study has set to;

• Find out the competitive strategy EasyJet used to achieve current position

• Critically evaluate the strategy EasyJet deployed and

• Make few recommendations to EasyJet based on finding

Competitive advantage and Generic Strategy

Competitive advantage: Competitive advantage is the essence of competitive strategy encompassing those capabilities, resources, relationships and decisions, which permit an...
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