Strategic Management & Sustainability

This paper discusses the strategies used by Easy Jet Airlines and provides recommendations for growth. It includes a PESTLE analysis, Porter's Five Forces, SWOT analysis, VRIO framework, and recommended strategies for Easy Jet Airlines.

Running head: strategic management
Strategic Management and Sustainability

Strategic management and sustainability
Introduction
Strategy is considered as one of the important aspect which is taken by the companies as it can
help them to grow in the competitive market. Strategy is defined as a plan of action which is
designed to attain the long term goals. Without strategy it will not be possible for the companies
to achieve their goals and objectives, so every company focuses on considering proper strategies
in the workplace.
Competitive strategy can also be defined as the long-term plan for specific organization and it is
considered so that it is easy to attain the benefits over the competitors. The aim of this is to
create defensive position in the workplace and also it generates the overall ROI. This is
considered so that the company can outperform its competitors in the market and can achieve
growth in the competitive market. Competitive strategy can be considered as one of aspect of
various strategies which is prevailing in the market. So, in this paper the discussion will be made
on the strategies which are considered by the Easy Jet Airlines and also various
recommendations will be given which will highlight the overall growth.
Easy Jet Airlines
Easy Jet Airline is considered as one of the biggest company in the airline sector. It is also
famous British company with the large market share. Easy Jet is the low-cost carrier airline
companies and the company manages all its operations on the domestic and also on the
international platform. It is analyzed that there are over 820 routes in more than 30 countries. It
is seen that Easy Jet has enhanced its operations in relation to acquisitions and also the base
opening fuelled by the overall demand of the customers at the low cost air travel.
The company is also linked with Easy Jet Europe and Easy Jet Switzerland which manages more
than 200 aircraft. In 2014, the company focused on carrying more than 65 million passengers
and also it is one of the second largest airlines in Europe in terms of the customer base behind
Ryanair (Easy jet, 2018). It is stated that due to better services offered in the competitive market,
the company attained large market share and also positive image is created in the mind of the
customers in relation to the entire activities rendered by the management.
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Strategic management and sustainability
Pestle analysis
Political factor
In reference to the Easy Jet, there are various political change which impacted the overall
activities of the company. In 2016, there are various airlines including the Easy Jet which
managed their activities in the challenging political environment. It is important for the company
The regulations and laws are also considered by the company as it has been seen that UK
government took decision last year to approve the third runaway at Heathrow can also one of the
opportunity to enhance the market share in the competitive market. But it can also been seen that
the company have no operations in the area but support is given by the company as it is easy to
achieve the large market share. It has been analyzed that Brexit is the best example in which it
has been stated that the entire activities of the company in the European countries will be
impacted after the completing of Brexit. So, it has been seen that political has impacted the
overall activities of the company (Dobni, Klassen and Sands, 2016).
Economic factor
Due to increase in the competition level it is seen that there is a huge pressure on the company as
the overall cost of wages has been increased in relation to the countries. It is seen that as
recession take place, there are business travellers who focuses on the overall expenses.
Globalization also boost thee overall traffic in long term which has impacted the overall
operations in the positive manner of the company (Iatrou and Oretti, 2016). For example : It can
also be seen that modification made in the inflation and taxes rates after the completion of the
Brexit can impact the overall cost of the company in the business world.
Socio cultural factor
To consider the overall demand of the society, the company focused on offering services at low
price so that it is easy to attract the customers towards the company. Focus is also given on
promotion so that large market share can be grabbed (Ford, Paparoidamis and Chumpitaz,
2015).
Technological factor
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Strategic management and sustainability
The company focused on latest technologies and software so that customer satisfaction can be
enhanced. So, it is recommended that online booking is also one of the factors which boosted the
overall sale of the company.
Legal factor
It is analyzed that there are various legal factors faced by the company. The London country
court also judged for the breach of the contract in the overall compensation claim (Taneja, 2016).
Therefore, it is recommended that safety policy of the customers can help in boosting the sales of
the company.
EasyJet’s half yearly profit before tax (GBP, mill): 1H2005/06 to 2H2011/12
(Source: CAPA, 2013).
Environmental factor
The company also faced the issue related to change in the weather. Change in the weather has
impacted the overall activities of the company. Also, the impact can be seen that on the overall
fuel consumption which is linked with the carbon emissions. It is stated that Easy Jet is focusing
on use the fuel effectively as it can help in minimizing the overall emissions. In this focus is
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Strategic management and sustainability
given on engine taxiing and also in installation of the lightweight Recaro seats. This can also use
the electronic devices in comparison to the papers as it can help in maintaining the overall
operating process effectively (Goodall and Ashworth, 2013).
Porter five force model
Bargaining power of Buyers
Bargaining power of the buyer is strong as there are many competitors present in the market and
company can easily avail the same services from them. It is seen that to achieve growth the
companies can reduce the prices and at last it is the decision of the customers to avail the
services or not (Kaplan and Sibley, 2010).
Bargaining power of suppliers
The suppliers are the aircraft manufacturers like Boeing and Airbus. In this sector, the aircraft
companies to switch the suppliers and also by seeing the competition level the agreements are
made on the long term basis. So, bargaining power is low of the suppliers (Malighetti, Paleari
and Redondi, 2015).
Threat of new entrants
It is also low as the cost incurred to enter the market it high. It is not possible to enter into the
market in an easy manner. Also, there should be strong customer base so that they can attain
profits. So, in this sector the investment incurred is high, so there are fewer companies who focus
on enhancing the market share as well in the competitive market. Also, it is important to have
experience in the aircraft sector to open the business in the market. So, the threat can be low
(Chandy and Cross, 2011).
Threat of substitutes
In this industry there is a medium risk level of substitution. There are many substitutes in the
airline sector. It is seen that travellers can select the various modes of transportation like cars,
buses, trains and also boats. So, the customers sometimes do not select the other methods of
transportation just because of the cost.
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Strategic management and sustainability
Rivalry among the existing players
It is high as there are many competitors present in the market. To leave the industry in this
sector is difficult just because of the long term agreements that are made by the companies to
stay in the business.
Like Easy Jet is popular just because of the low cost services offered in the market. The market
share can be equally distributed just because every firm in the market has its own part of the
market and also the switching costs are low (Morlotti et al., 2017).
Bargaining
power of
Buyers
 power of
the buyer
is strong
 many
competit
ors
Bargaining power
of suppliers
 aircraft
manufacturer
s like Boeing
and Airbus
 bargaining
power is low
of the
suppliers
Threat of new
entrants
 cost incurred
to enter the
market it
high
 experience in
the aircraft
sector
Threat of
substitutes
 medium risk
level of
substitution
 customers
sometimes
do not select
the other
methods of
transportatio
n
Rivalry
among the
existing
players
 high as
there
are
many
compet
itors
present
in the
market
 low
cost
service
s
SWOT ANALYSIS
Strength
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Strategic management and sustainability
It is seen that one of the strength of the company is related with the brand image in the market.
The company has a good image in the market which boosted the overall profits in the
competitive market. Also, the single model of the aircraft can help in reducing the training,
maintenance and also supervisory costs (Taneja, 2016).
Weakness
The weakness of the company is related with the high sensitivity in the overall charges of the tax
which is imposed by the government just because of the low operating margins.
Opportunities
The company has the opportunity to enhance the market share and also the academy of the
company can be considered as the source of the ancillary income. The leverage on the easy jet
hotels can help to enhance the overall brand awareness in the competitive market. The new fleet
can also be leased out at the time of travel recession seasons and it is easy to attain more profits
in the competitive market (Elliott et al., 2015).
Threats
One of the threats related with the company is government policies and strict aviation
regulations. It has been seen that the company has to face the issues related to the government
rules and regulations. Also, there is high bargaining power of customers in the LCC segment and
also there are players who are entering in the LCC segment.
Strength
 brand image
 boosted the overall profits
Weakness
 high sensitivity in the overall charges
of the tax
 low operating margins
Opportunities
 academy of the company
 leverage on the easy jet hotels
Threats
 government policies and strict aviation
regulations
 high bargaining power of customers
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Strategic management and sustainability
VRIO framework and Strategic capabilities
Tangible resources
Financial resources
It has been seen that company has a strong financial base and it is one of the key resources. The
revenue of the company has been enhanced by 8.1% in 2017. The good financial base of the
company assists in investing and managing the overall low cost business model. This has
assisted to attain the part of Air Berlin which will help the company to maintain its capital.
Intangible resources
Human resources
The company has good relation with the customers who maintain the overall loyalty and also
enhance the revenue. Due to customer satisfaction, the company is achieving growth in the
competitive market.
Strong relation with the stakeholders
The company has generated good relations with the stakeholders including the customers and
suppliers. It has boosted the revenue and also customer relation which resulted in maintaining the
low cost business model (O'Connell and Williams, 2016).
Strong brand name
The airline is considered as one of the largest second UK airline and in the world it is on the 8th
rank. Easy jet focuses on maintaining the largest airline in German capital after the acquisition of
the Berlin Air. It has been analyzed that on the 18 positions in the market the company has a set
of seats which has created the good brand image in the market (Goodall and Ashworth, 2013).
Technology
The company has been awarded one of the best airline core competency awards and also it
enables the overall revenue of the company and its customer satisfaction. The services are
offered on the online platform which boosted the overall image of the company in the market.
So, this is also one of the advantages which boosted the overall brand in the market and helped to
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Strategic management and sustainability
attain the desired goals and objectives in the competitive market (Hill, Jones and Schilling,
2014).
Recommended strategy for Easy Jet airlines
Strategy A
E marketing strategy
The mission of the company is to provide proper services to the customers. Also the main aim is
to develop good relationship with the customers in the market. So, it can only be done when
focus is given on the core competencies related to technology. It is important for the company to
make the booking system easy as it can help in enhancing the overall demand of the services in
the competitive market. If easy booking system is used then it is simple for the company to boost
the overall profits of the company as there are many uneducated people to book a flight.
The online check in system is also one of the essential parts of the market strategy and it saves
the time of the customers. Through this it can be easy for the customers to resolve the queries of
the customers in relation to the services offered by the company in the competitive market. Also,
through this entire process it is easy to boost the overall customer satisfaction in the competitive
market. So, this is one of the strategies that should be considered by the company in the
competitive market (Shaked and Sutton, 2011).
Strategy B
Training
The mission of the company is to maintain the overall quality of the services and it is done if
there is proper training given to the human resources of the organization. Training should be
given to the employees as it can help in boosting the overall knowledge and skills of the
employees in the competitive market. If proper training is given to the employees then it is
simple to attain the overall goals and objectives in the competitive market. Training given to the
employees also enhances the overall confidence level of the employees towards the working
pattern of the company and also they work with dedication and honesty towards the entire
objective of the company.
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Strategic management and sustainability
So, it is important for the company to emphasize more on training as it can help in attaining the
positive outcome and can also boost the morale of the employees in the workplace. Training can
also be the source that can help to retain the employees in the competitive market and also it
boost the culture of the company. By giving training, the management to create positive culture
in the workplace which can be the outcome of enhanced motivation (Kew and Stredwick, 2017).
SAF strategy
So, it is important for the company to focus on the SAF analysis. Suitability is one of the factors
to maintain the brand image in the competitive market as it can help to boost the profits.
In reference to the acceptability factor it is important to focus on measuring the returns and risks
of the stakeholders. It can help to maintain the overall analysis taking place in the competitive
market.
The last strategy is feasibility in which it has been seen that manpower and material are
considered so that it is easy to attain the positive outcome in the competitive market (Pearson,
Pitfield and Ryley, 2015).
Acceptability factor
 returns and risks of the
stakeholders.
 competitive market.
Feasibility
 manpower and
material
 positive outcome
Suitability
 brand image
 boost profits
Key findings
By analyzing the paper it is seen that company should consider the strategy related to e
marketing. Also, proper training should be given to the people so that it can be easy to boost the
overall morale of the employees. The company can also leverage the overall financial resouyrces
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Strategic management and sustainability
of the company so that expansion can take place in the new market and also it will boost the
growth of the aviation sector in the business world.
Conclusion
So, the concluded states that it is important for the company to consider the strategic concepts
related to Porter five force models and Swot analysis as it can help to consider the right actions
or the decisions. These concepts can helps to manage the overall activities of the company and
can also focus on attaining positive outcome in the competitive market. Also, proper strategies
should be considered so that it can be easy to attain positive outcome in the market.
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Strategic management and sustainability
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