Strategic Direction: Competitive Analysis, External Analysis, and Change Management Model of Easy Jet Plc

STRATEGIC
DIRECTION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Competitive analysis of Easyjet...................................................................................................3
External analysis of Easyjet.........................................................................................................5
Lewin’s Change Management Model in context of Easy Jet plc. ...............................................7
Recommendations........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic direction can be described as certain strategies or tactics that needs to be applied
within the company in order to enhance the growth and development of the company. A strategic
direction allows an organization to achieve its organizational goals and convert their vison into a
reality (Harrison, and et.al 2021). The strategic management of an organization helps
accompany in gaining the competitive advantage of an organization within the market as
compared to its competitors. The present report is based on the study of Easy Jet plc which is
headquartered in Luton, United Kingdom and was founded in the year 1995. The present report
will present an overview if the competitive advantage, external environment and strategic change
management process. The current report also states certain recommendations that are in relation
to the issues that have been identified and analysed in context of the company within the market.
MAIN BODY
Competitive analysis of Easyjet
A competitive analysis is basically a set of strategies or techniques that involve the
procedures like researching of the major competitors for the purpose of gaining the insight into
the products, marketing and sales tactics of the company in particular (Li. and et.al., 2020). This
analysis of Easyjet in particular is presented in the further discussion by implementing Porter's
five forces method.
Porter's five forces is basically a framework for the purpose of analysis of the competitive
environment of the company (Shokeen., 2016). There are five major elements of the Porter's five
forces, these are threat of the new entrants, threat of the substitutes, competitive rivalry,
bargaining power of the suppliers and bargaining power of the buyers.
Competitive rivalry
Competitive rivalry basically refers to the competition of the company that is present in
the market or within the industry. The competitors of the company are analysed by tactics like
product introduction, advertising campaigns and price competition. The major aspects through
which the competitors can be analysed within the market are if the competitors are sellers of
homogenous products, the growth of the industry is slow, the switching costs are low, the fixed
costs are high or if there are high barriers of exit.
The major competitive of Easyjet are Flybe, Pegasus airlines, Ryanair and Wizz air.
Threat of new entrants

The threat of the new entrants refers to the threat that the company has from the new
comers or the newly established and establishing companies within the market. This specifically
focuses on the levels of easiness of entering and exiting the industry or the market which the
company operates in (Bruijl. and Gerard., 2018).
Many new companies are coming in the industry of travel and tourism as the industry is
growing enormously. Easyjet in particular is dealing with the new entrants or the new companies
by lowering the pricing strategy of the company and enhancing the marketing strategies,
providing new and innovative value propositions to the customers and also reduce the costs so
that the customers find the products and the services affordable.
Threat of substitutes
Threat of substitutes basically refers to the threat that a particular company has from the
substitutes of that company that are operating within the market. Substitutes basically refer to the
companies that sell similar products in the similar market and also provides similar services to
the particular group of target audience. This threat can not be undervalued or underestimated.
There are companies that are very powerful by selling similar products and providing similar
services than the others.
Easyjet is present in the travel and tourism industry, which is one of the most growing
industry overall. And Easyjet tackles this problem by being more service oriented and not only
product oriented. And also the switching costs are high, also, the company is more understanding
towards the needs of the customers too.
Bargaining power of suppliers
The bargaining power of the suppliers refers to a backward vertical force within the
supply chain of the company. Suppliers are able to exert their pressure or power through raising
the prices, restricting the supply and reducing the quality of the product or the services.
The companies within the travel and the tourism industry generally buy raw materials
from diverse and numerous suppliers. The impact of the higher overall bargaining power of the
suppliers of Easyjet is done by lowering the overall profitability of of the tourism and the travel
industry.
Bargaining power of the buyers
Bargaining power of buyers or the purchasers is also known as the vertical force. This
force basically comes from or focuses on a different stage or level of the supply chain of the