EasyJet. Within this essay there is going to be an approach on easyJets strategy and how has developed its resources, capabilities and gained its competitive advantage.

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Module Tutor : Professor Declan Bannon

Students :

Table of Contents

Table of figures

Figure 1 Porter’s 5 forces model        

Figure 2 Value chain        

Figure 3 Stakeholder mapping        

Aims and scope

Within this essay there is going to be an approach on easyJet’s strategy and how has developed its resources, capabilities and gained its competitive advantage.

  1. Introduction

Stelios Haji-Ioannou founder of easyJet and easyroup, has introduced easyJet to the public in 1995 as a new no frills airline services. EasyJet was based on the model of SouthWest airlines, a low cost air carrier in the US. In 1995 easyJet started with two leased aircrafts and its first flight was from Luton to Glasgow with a one way fare of 29₤. During flights there was no meal served nor soft drinks, everything was offered provided that it was paid and only easyJet’s magazine ‘easyrider’ was free of charge. Stelios argued that during bus travels nothing was offered for free and did not see any reason why that should be any different in air flights.

Later on, due to high demand, easyJet bought four new aircrafts Boeing 737-300s and added new routes to Edinburgh and Aberdeen. In 1999 easyJet owned and had leased eighteen Boeing and flew to 27 destinations within Europe. In order to reduce costs the aircrafts were utilized to the maximum degree. Moreover, the booking was made initially directly through telephone and later on through easyJet’s web page. As internet marketing gurus suggest “place the company’s URL everywhere”, easyJet did that and placed the easyJet.com label on the side of its Boeings (Dave Chaffey, 2007). The easyJet web site nowadays has many hundredths of visitors and 90% of the company’s sales are being made through the web site. Customers after payment are given a pin number only in order to get their boarding pass while checking in.

In 2002 easyJet acquired British Airways’ subsidiary low cost airline “GO”, which helped easyJet to expand its fleet and routes. In October 2007 easyJet agreed to acquire another low cost air carrier GB airways that will enable easyJet to get fifteen more aircraft and to fully utilized the potential of Gatwick airport, where GB airways is based, through considerable lager number of slots. In November 2007 easyJet announced its preliminary results. According to Andy Harrison, CEO of easyJet, the company now operates 107 Airbus and 30 Boeing aircrafts which made a total of 137 aircraft fleet.

  1. The environment of EasyJet

  1. The mission

The mission of easyJet was “to offer low-cost airline service to the masses, to provide our customers with safe and to offer a consistent and reliable product at fares appealing to leisure and business markets from our bases to a range of domestic and European destinations” (www.easyJet.com)

The objectives of this mission from the company were: the approach to customer satisfaction, the punctuality, the evaluation with subcontractors and the strong inclusive employee-culture.

The organization’s mission statement should answer the question “What business is the company in?” EasyJet is not a food business but it is a mass-transportation business. Furthermore, it aims to offer “safe, good value transportation” and finally gives information on the “how to get there?” by putting emphasis on its people and suppliers. (www.easyJet.com)

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  1. Porter’s “Five Forces” and their Application to easyJet

To analyze the airline industry, we will apply Porter’s five competitive forces.

In today’s airline industry, there is no simple or unique strategy to follow, whereas we deal with a rather complex business sector, with a series of variables to consider. The aim is to establish the most appropriate strategy and implement into the airline market on a long-term basis.

        In the air transport industry, the policies of traditional, well-established European airlines are practically similar, in terms of aircraft, seating configuration, flight frequency and pricing. Driven from ...

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