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EasyJet strategy

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  1. Introduction
  2. Understanding the business identity and culture
    1. The general policy of the company
    2. The culture
    3. The moto
  3. Strategic segmentation
    1. Competitive edge
    2. Key success factors
    3. Competencies that the company can gain to experience in segments
    4. The grouping
    5. Value chain
  4. Conclusion

EasyJet is a company that was founded in 1994 by Stelios. This was the first European airline to offer cheap local flights.

In 1995, EasyJet was one of Europe's leading low cost airlines, thanks to an efficient operating model, brand awareness and the ability to maintain a high level of customer satisfaction.

Actual costs have been reduced to a minimum to maintain a low selling price. These actual costs do not include service on board, meal trays etc. There are no first and business-class, and there is no ticket but merely a number to withdraw the booking from the Internet.

Moreover, EasyJet makes the most of its planes, flying them around 11.5 hours per day instead of the 6 hours travelled by its competitors.

Stelios's mission is multifaceted. He attaches great importance to developing the culture of EasyJet, and transmits it to its employees whether directly or indirectly. The objective of Stelios is to ensure a direct and privileged relationship with the customer, and maximize their satisfaction at all levels.
Particular emphasis is placed on communication in order to establish brand awareness. Indeed, 10% of the revenues are invested in advertising for EasyJet (magazines, newspapers, radio)

From a strategic standpoint, EasyJet expected to reach a certain reputation, before expanding into new markets. This led to the creation of cyber-cafes, easyHotel, and easyrentacar in 1999. Indeed, it is important for EasyJet to stabilize and consolidate operations in countries where it already operates.
The chosen strategic positioning has been successful because EasyJet is a market leader. This is reflected elsewhere in the company's financial results.
In this case, we will first carry out an internal analysis of the company. This involves understanding the business by its identity and culture.
In the second part, we will realize the strategic segmentation. This will include the strengths and weaknesses, and the competitive advantages of the company.

[...] The general policy of the company social On each of the following principles, EasyJet's current policy may be depicted as follows: at all costs modesty We assigned 4 points to the growth of EasyJet as its turnover increased from 46,034,549 in 1997 to 77,000,035 pounds in 1998, a rise of 67%. EasyJet's profitability is in 3rd position because their margin is up by only but it practices "Yield Management", which involves increasing ticket prices according to the demand and the number of seats remaining. [...]

[...] In the long term, EasyJet wants to venture on the stock market (NASDAQ, London Stock Exchange). In 2000, Stelios wanted to diversify its activity, and offered a package including flights, car rentals and hotels. Five years later, we see that his predictions were performed successfully. However, Stelios also wanted to open a totally different business: Internet banking. Value Chain Infrastructure of the firm: EasyJet's premises located in Luton airport are called EasyLand. Human Resources Management: As in any other business, human resources manages recruitment (Internet), training and management of employees Marketing / Communication: EasyJet communicate with the public via internet, aircraft displays, events, and by all broadcasters. [...]

[...] EasyJet relies heavily on the privileged relationship with the client. It is important for the whole team to have a direct approach to increase customer satisfaction. For this, several media are used. The Internet and different telephone lines are used for greater efficiency, and correspondence by mail is encouraged, to which answers are given systematically. Moreover, in the late 90s, Stelios participated in the operations on 4 flights per week to show interactivity with customers. Customer satisfaction is achieved through the slogan "punctuality". [...]

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