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This case is about easyGroups efforts to diversify. The company established itself as a low-cost, no-frills carrier that focused on managing yield in the airline industry.

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  • Essay length: 1645 words
  • Submitted: 29/06/2011
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AS and A Level Case Studies and Analysis

The first 200 words of this essay...

Extending the "easy" Business Model: What Should easyGroup do Next?

Teaching Note

Introduction

This case is about easyGroup's efforts to diversify. The company established itself as a low-cost, no-frills carrier that focused on managing yield in the airline industry. In some ways, easyJet was the Southwest Airlines of Europe: the first successful low-cost carrier. easyGroup has tried to transfer this business model to both the rental car and internet café businesses. In this case, it is considering entry into the UK movie theatre industry. This case offers students the opportunity to apply the diversification concepts in chapter 9. Particularly, it allows students to assess what it means to have a coherent diversification strategy. Secondarily, it also exposes students to Stelios Haji-Ioannou, a successful serial entrepreneur and to an international business context.

Study Questions

1. Why was easyGroup successful with easyJet?

2. What is your assessment of easyGroup's diversification strategy? Do you expect easyGroup to be successful in internet cafes and rental cars? Why or why not?

3. Should easyGroup enter the cinema business? If so, how?

Teaching Plan

1. Discussion of easyGroup's history and early diversification efforts (15-20 minutes)

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