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Easyjet competitive advantage

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  1. Competitive advantage theory
  2. Assessing the environment and the nature of the competition
    1. EasyJet SWOT analysis
    2. Sources
    3. Porter's matrix
    4. Sources
  3. Analysis of the different forces and strategy between EasyJet and Ryanair
    1. Sources
    2. Marketing mix differences between easyJet and Ryanair
    3. Sources
  4. Determination of a competitive advantage
    1. The business positioning as competitive advantage
    2. Service quality and brand image as competitive advantage
    3. Choice of the principle competitive advantage which has to be nurtured

The objective of the report is to bring out the competitive advantages of EasyJet through an in-depth analysis of EasyJet, its main competitor Ryanair and its environment. In the later part of the report, we will demonstrate these competitive advantages. The report reveals that its two main competitive advantages are the business positioning, and the service quality - brand image. These are then qualified by their importance. Whereas the first one is important in the short term, the second in relevant in a long term view. Finally, some recommendations are proposed. The recommendations about the business positioning are to keep this competitive advantage until a real change is brought about within the industry. However, one of the recommendations also advises against making an investment. The recommendations about the other competitive advantages relate more to the ways of getting ?Sticking consistency' and to link service quality to the brand image. Globally, the goal of this report is to provide the ways in which to bring out the competitive advantages of a company, and finally to provide some recommendations about them.

[...] Choice of the principle competitive advantage which has to be nurtured Firstly, the business positioning of easyJet can enable the company to differentiate itself from Ryanair. Indeed, as has been said before, it represents a real difference with Ryanair, and easyJet is going to keep this advantage for a while. Nevertheless, on the one hand a new business customer perception has enabled the growth of a substitute, the share jets. This new perception is changing the market (rewriting the rules) in an unfavorable way. [...]

[...] A crucial point is to find out a competitive advantage which is difficult, or better yet impossible, for competitors to imitate or substitute (Holloway p.23). Indeed, barriers to entry must be created or, if they already exist, sustained in order to protect the chosen strategic position (Holloway p 28). Moreover, competitive advantage is context-dependent, meaning that nimble competitors with different and perhaps new perceptions of the marketplace can undermine it by changing an industry's context- that is, by rewriting the ?rules of engagement' in their own favor. [...]

[...] Competitive strategy: techniques for analizing industries and competitors. New york: Free press. Ries, A. and Trout, J. (2003). Les 22 lois du marketing. Paris: Editions Dunod. Journal Articles Kandampully, J. and Suhartanto, D. (2000), "Customer loyalty in the hotel industry: the role of customer satisfaction and image", International Journal of Contemporary Hospitality Management 346-351 Paul, H. and Hartman, J. (2003). The World Airline Industry: A European Perspective. European Case Clearing House Collection, 1-15. Electronic sources Business travel plus issue 46 p3 (February 2005). [...]

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