Stelios Haji-Ioannou, the "serial entrepreneur", launched EasyJet in March 1995 and in 1998, founded EasyGroup.
EasyGroup has the strategy that every company bearing the name "easy" should refocus its activities by reducing costs, and have lower priced products but by keeping a wide margin.
EasyGroup seeks firstly to extend its brand to other sectors, aware that some consumers seek to pay less for certain services and support necessary counterparts to benefit from the rates. On the other hand, EasyGroup wants to increase profitability in each sector by lowering costs through a constant focus on the business activities. The company should then benefit from a improved profitability.
EasyGroup's culture and different brands of the group are characterized by a strong spirit of innovation to better meet the expectations of consumers at reasonable costs. Employees have a central role in each activity as their number is limited and they only intervene in a timely manner, they must be extremely efficient and thus fully meet customer expectations. This task is facilitated by information available on the website of the group that aims to educate customers. This site presents the types of the company's services that customers should expect to find according to their degree of involvement, so that they can ask simple questions to the staff which is then able to respond quickly.
EasyGroup corresponds to a centralized management system, organized around Stelios Haji-Ioannou. The strategy of EasyGroup is also based on the control of employees. The latter, being in contact with the customer for a very limited amount of time, must be irreproachable. This includes all activities of EasyGroup: EasyJet, EasyHotel, etc. We see therefore that EasyGroup has a small adaptive management system. In addition, the large size of the organization supports this idea of a rather bureaucratic management style.
The goal of EasyGroup is strategic diversification of activities. Thus, there are more than a dozen brands of "easy", primarily in the areas of travel, leisure, telecom, finance (EasyJet, EasyCinema, EasyMobile, EasyMoney, etc.).
Each of these brands have refocused their services to the heart of business activities, virtually by secondary activities which are not indispensable to the consumer.
The strategy of EasyGroup brands when they enter a market is based first on redefining the core business sector. The principle is to eliminate any service device that is not part of the client's first request. This stripping of the offer therefore is justified by the low prices of Easycruise.The aim is thus to offer a simplified image, while maintaining the image of quality and safety as the basic services.
To offer these low prices while maintaining an acceptable range and meet the objectives of growth and profitability described above, EasyGroup practices a strict price control and use of resources. The goal is to achieve a cost structure reduced by 50% when compared to traditional companies in the industry in question.
Logistic resources are selected according to the first imperative. And EasyJet has established itself in smaller secondary airports where taxes are lower. On the other hand, the use of resources is done in order to optimize their maximum capacity. By reducing delays in flights, EasyJet allows its planes to fly 2 hours more per day than those of British Airways.
[...] The strategy of EasyGroup is also based on the control of employees. The latter, being in contact with the customer for a very limited amount of time, must be irreproachable. This includes all activities of EasyGroup: EasyJet, EasyHotel, etc. We see therefore that EasyGroup has a small adaptive management system. In addition, the large size of the organization supports this idea of rather bureaucratic management style. The goal of EasyGroup is strategic diversification of activities. Thus, there are more than a dozen brands of "easy", primarily in the areas of travel, leisure, telecom, finance (EasyJet, EasyCinema, EasyMobile, EasyMoney, etc.). [...]
[...] Finally, the Yield Management, and the method of personnel management and corporate culture are strong, and EasyGroup group has skills which can be used even on a different market such as cruises. - The cruise industry also seems to fit the definition of the criteria for selecting new markets by EasyGroup. Barriers to entry, in addition to investment in equipment, are not very high. The market is in free competition, firms are in a logical volume, and knowledge of the offer is perfect. [...]
[...] Owing to the rise of the euro against the dollar and the sociological fact of the number of vacation days being greater in Europe than in North America, companies are targeting the European market with more fervor. It is interesting to note that 40 cruise liners were built in 2004 to increase the overall capacity of maritime transport and accommodation of passengers. In this bull market, a strategy based on volume makes sense and major groups are beginning to diversify by seeking to attract a wider and younger consumer base. [...]
[...] The study of EasyGroup will allow us to understand in a more comprehensive manner the company strategy of EasyCruise and put in perspective its future development. II. Strategy underlying the creation of EasyCruise A. The cruise industry in the Mediterranean at the time of the creation of EasyCruise (2004) In 2004, the industry was dominated by large companies such as Carnival or Cunard that offered cruises on the Mediterranean and the chance to visit some cities around the country.American tourists make up a huge part of the customer base, as they are very fond of this kind of trip infused with an "all-inclusive" culture. [...]
[...] Finally, EasyGroup is distinguished by the use of yield management, that is to say, the practice of differential pricing. A significant increase in turnover is achieved by controlling the volume sold at each price level. The company is using a rational method of pricing and yield management to optimize the balance between supply and demand. In times of high demand, the company develops the prices, and in periods of low activity, it adjusts the prices to take advantage of the volume of customers. [...]
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