Strategic Management and Sustainability of EasyJet

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Strategic Management and Sustainability
EasyJet

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Table of Contents
Introduction............................................................................................................................. 2
EasyJet Airline.......................................................................................................................... 2
PESTEL Analysis of EasyJet........................................................................................................3
Porter’s five forces framework.................................................................................................4
SWOT Analysis..........................................................................................................................6
Strategic Capability Mapping................................................................................................... 7
VRIO Framework...................................................................................................................... 7
Recommended strategies.........................................................................................................8
SFA Analysis..............................................................................................................................9
Key findings............................................................................................................................ 10
Conclusion.............................................................................................................................. 10
References..............................................................................................................................11
Table of figures
Figure 1: EasyJet Price Advantage............................................................................................3

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Introduction
In today’s competitive business world, corporations focus on generating and maintaining a
competitive advantage in their industry to ensure that they are able to sustain their future
growth in the market. Competitive strategy provides an edge to companies over their
competitors that sustain their profitability (Santos-Vijande, Lopez-Sanchez and Trespalacios,
2012). In the case of EasyJet, the corporation has generated a competitive advantage based
on its cost-effective strategy which attracts a large number of customers. The company
focuses on providing them a comfortable journey for lower price to increase the number of
its customers. This strategy enables corporation to create more economic value than
compared to its competitors, and it assists the company in outperforming its competitors.
The corporation also has established a good design which attracts most customers. The
company is able to operate more efficiently, smoothly and comfortably which creates a
positive environment for its customers (Cattaneo et al., 2016). The use of technology to
improve the effectiveness of functions also benefits the company in providing a comfortable
experience to customers. These policies provide a competitive advantage to the enterprise
which assists it in sustaining its growth in the aviation industry.
EasyJet Airline
EasyJet Airline Company Limited is a low-cost British carrier airline which was established its
operations in 1995. The corporation has established its headquarters in London Luton
Airport, and it operates in both domestic and international schedules. The company offers
its services in more than 30 countries, and it offers over 820 routes to its customers
(Reuters, 2018). Customers prefer to select this airline because it gives them a low-cost
option to travel to Europe. The corporation is popular with travellers who wanted to spend
a luxurious experience in Europe; however, they did not prefer to pay heavily on air
travelling. The corporation manages its operations through more than 200 aircraft; the
company mostly uses Airbus A320 because it is cost effective and it provides a comfortable
experience to customers. The corporation has employed more than 10,000 employees to
manage its operations effectively (EasyJet, 2018a). Currently, the company is the second
largest airline in Europe in terms of number of passengers carried; in 2017, the company

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carried more than 80.2 million customers. In terms of number of passengers, the company is
right behind its one of the biggest competitor that is Ryanair which is an Irish law cost
airline.
Figure 1: EasyJet Price Advantage
(Source: CAPA, 2013)
PESTEL Analysis of EasyJet
Political factors
The instability in the political environment of major markets of EasyJet resulted in creating
challenges for the enterprise. Brexit is a good example; the operations of the company in
European countries will suffer after completion of Brexit. The competitive advantage of the
company comes from offering low-cost airline services to passengers in European countries
might be destroyed (Rogers, 2018).
Economic factors
The uncertainty caused due to Brexit regarding the economy of the country might create
challenges for EasyJet by reducing the number of passengers. The changes made in inflation
and interest rates after the completion of Brexit might result in increasing the operating