EasyJet's Marketing Strategy Analysis
Added on 2020-05-28
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Running Head: Strategic Management 1Strategic Analysis of EasyJet Airlines
Strategic Management 2ContentsIntroduction......................................................................................................................................3Main body........................................................................................................................................3Background of Easy Jet................................................................................................................3Strategic position of Easy Jet.......................................................................................................3Internal analysis...........................................................................................................................4Primary activities......................................................................................................................4Supportive activities.................................................................................................................5Product differentiation.................................................................................................................5Human resource management......................................................................................................6PESTEL analysis..........................................................................................................................6Recommendations and conclusion..................................................................................................8References........................................................................................................................................9
Strategic Management 3IntroductionThis report discusses an analytical research of EasyJet in order to understand the strategicposition of the company in the airline industry. Airline EasyJet is famous among the travelers forits low cost services. In the past few years, the airlines have done many major changes in itsmanagement style. The airline has unique business strategy which is the reason of success in theairline industry(Pate & Beaumont, 2006). The objective of this report is to analyze the strategyand tactics used by the airline in order to stay competitive in the industry.The report focuses onthe strategic analysis including PSTEL analysis, product differentiation and human resourcemanagementBackground of Easy JetEasyJet is a public listed company under the oligopolistic structure and operates acrossthe European continent. The Airline has started has started its business operations in 1995 andnow it is considered as the low-cost European airline in the industry (EasyJet Plc, 2018). As the‘low-cost’ company, EasyJet is different from traditional airlines by having very low fares. Thecompany is now providing the services of domestic and international carriers to the passengers atvery low cost. Airline is seeking to keep the costs low by minimizing the unnecessary frills andcosts. There is the need to reduce the costs as the strategy in order to reach many customersEasyJet is focusing on maintaining its effective strategic position in the airline industry (Johnson,2010).Strategic position of Easy JetEasyJet is the leading airline company in UKthat is providing low cost airline services tothe travelers. The organization is known as the ‘No-frills’ airline in which the airlines providesthe services at very low fares and eliminates all the unnecessary services (Wright & Quinn,2014). Pricing- The generic strategy of EasyJet is the cost leadership strategy. The philosophy of theorganization is to provide the low-cost services based on the market size in order to get profit.Based on such strategy, EasyJet is able to maintain cost advantage over the established airlines.
Strategic Management 4By the low-cost strategy, EasyJet is trying to maintain the perceived benefits from the productand services as compared to its competitors (Peñaloza et al, 2013). Organization focuses on twobasic factors i.e. customers and prices in order to achieve the competitive advantage in themarket. So, EasyJet has strong competitive and strategic position in the airline industry over itscompetitors. Marketing- For the effective marketing process, EasyJet is using effective tactics and slogansi.e. ‘come fly with us’. Along with this, organization is also providing electronic tickets to thepassengers so that they do not need to print the ticket in physical form. Organization hasintroduced mobile application also in order to enhance the revenue and sales (Braun & Latham,2014). HR- HR department is the most important part of the organization. EasyJet is focused on thewelfare and development of its employees basically, organization hires young people. Now,there are more than 100 people employed in the business operations. Internal analysisEasyJet Airlines is a low cost airline that offers affordable services to the travelers at thelow prices. The business operations of the airline include various activities in order to providevalues to the customers. Airline is achieving competitive advantage as compared to other airlinesin the industry and minimizing the risk of substitute. The activities of EasyJet are describedbelow:Primary activitiesThe key objective of any organization is to achieve the operational efficiency and in orderto achieve this, primary activities of EasyJet is the major concern. The primary businessactivities of the airline are as follows:Inbound logistics-EasyJet is operating its business in more than 30 countries including over 600 routes.Organization is providing services to more than 65 million people (EasyJet plc, 2017). Theorganization has strong position in the industry by offering low cost services as compared toother airline companies. Along with this, the organization is involved in various environmental
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