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Case study: EasyCruise

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The Easy group began in November 1995, when Stelios Haji-Ioannou (the serial entrepreneur as he likes to call himself) decided to create (he is the son of a Greek shipping magnate) an airline based on low prices through massive reductions in costs (small airports, hotlines, e-tickets, no peripheral services etc).

The firm thus chose to focus on its core competency- one for which customers are attracted to the company- to reduce costs and offer products at fragmented prices. Today, faithful to the principles that have been successful so far, Stelios penetrates any market where he can apply his winning strategy with success. The objective is to reduce the cost structure by 50% compared to other companies.

The strategy is clearly identifiable, almost caricatured, and relies on creating competitive advantage by cost. It is also a disruptive strategy, Stelios calls into question the established rules and invents new ones with each new "enterprise". This was also true of easyJet, which introduced a new way of looking at a plane trip, and created a demand among people who hitherto traveled by train.

Rather than match the competitors, the company deploys part of its resources to change the environment (in the case of easyCruise, it is the perception of the customer when the utility of the cruise product is amended). Even the most spectacular and successful strategies of rupture must still be founded on objective arguments.

The question we can ask is: can we reproduce a model based on a single strategy for all industries of tourism? This is in view of the launch of easyCruise, a company that offers cruises at discount prices that we will answer that question. This industry, in fact, seems impervious to this kind of approach in the domain of luxury, where the service is valued only if it allows the consumer to distinguish themselves.

Also, what are the opportunities for easyGroup to launch in the market for Mediterranean cruises? Initially we will identify the external and internal issues and then make recommendations, and formulate an operational strategy.

The corporate identity is based on a pattern of behavior characterized by the concept of "low-cost, no frills." This sentence sounds like the motto of easyGroup and affects policy choices.

But behind this concept lies a focus mainly concentrated on one leader, namely, the founding director Stelios Haji-Ionannou. Stelios and his group are closely related as to be fully assimilated. Anyone visiting the websites of the 15 activities of the group can meet 13 times out of 15 the phrase "brought to you by Stelios and easygroup.com."

On the other hand, numerous drawings and photos adorn the Cypriot sites and mark its omnipresence. It also begs the question of whether "Stelios" does not become a brand comparable to the concept of "easy" business and the color orange but this idea lies more in the domain of marketing orientation.

Profitability and growth are closely linked. Indeed the group's growth is made possible by the profitability of certain activities. The margin generated in sectors such as aviation (easyJet) can be considered for development of other companies in other sectors to gradually "paint the world orange" (Mission statement).

Tags: Stelios Haji-Ionannou, corporate identity of easyCruise, low cost companies

[...] We will see the practical application of these skills in the action plan which will be developed later. The strategy formulation 1. A diversification strategy: the launch of easyCruise The strategy developed by easyGroup in all its activities is based on a perceived value which is lower than competitors and a lower price than competitors. In fact, the group offers services with less added value than the competition at lower prices. This type of strategy is a strategy of treatment. It would therefore be appropriate to consider a strategy similar to the cruise market in the Mediterranean. [...]


[...] Tropez, Nice, Cannes, Monaco or Portofino may strongly contrast with the simplicity of the service. Customers transported by easyCruise will probably not have a high enough purchasing power for such destinations. In addition, these prestigious resorts do not welcome the arrival of this type of clientele. Another unknown element for the group is the seasonality of the business. Reduced duration of the season implies an imperative necessity to better control the reservations, so that the occupancy rate is always 100%. [...]


[...] DIVERSIFICATION STRATEGY: THE LAUNCH OF easyCruise 2. OPERATIONAL RECOMMENDATIONS FOR THE LAUNCH OF 3. REASONS FOR UNCERTAINTY Introduction The group's history began in November 1995 when Stelios Haji-Ioannou (the serial entrepreneur as he likes to call himself) decided to create (he is the son of a Greek shipping magnate) an airline based on low prices thanks to massive reductions in costs (no peripheral services, small airports, hotlines, e-tickets . ).The company chose to focus on and competence and the customers come to the company to reduce costs and buy products at lower prices. [...]


[...] So for the diversification of easyGroup into the the cruise segment to be effective it is necessary that the group comes to adapt its business model to the low-cost market. It is then necessary to consider the distance between the new activity and know-how of the company. To do this, we have identified the diagnostic resources and transferable resources to build this service. Buying groups: are they the same or are they new? We can consider that buying a group's share diffuses the common traits with current customers of easyGroup. They should be able to book their stay online. They will co-produce the service purchased. [...]


[...] The cruise industry is in a growth phase. Richard Sasso, president of Cruise Lines International Association and Celebrity Cruises Compagnie, points and also predicts a still impressive growth in the sector. He justifies his prognosis announcing the arrival of new ships which are safer, more reliable and environmentally friendly, offering passengers a variety of products on board. The Cruise Industry should thus be able to attract a larger share of the holiday market than it does now (only today). This is particularly attractive where demand is growing and is currently operating at less than 10%. [...]

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