Strategic Management in Easyjet - Doc

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
1)Key direction for future growth of Easyjet..............................................................................1
2)Particular strategy going forward for future justification.........................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Strategic management is the tool or method to make effective strategies through which
business can grow and can meet its goal. . EasyJet is taken for this report, It is a British company
which categorises in low-cost airline and their headquarter are situated in London. This report
highlights the key direction for the future growth of Easyjet and also shows the particular
strategy that going forward for future need(Ansoff and et.al., 2018). In this regard present report
has been prepared that involves discussion over strategic management.
1)Key direction for future growth of Easyjet
Porter five force
It shape the strategy to make it effective so that they have an significant impact on
profitability of the company. It is framework of holistic strategy that helps in taking decisions
strategically that is away from analysing the competition. The five forces of porter are -
Threat of new entrants
Airline sector is too wide and it is impossible for new firm to create threat for already
existing firms hence EasyJet needs not to worry about it (Moutinho, and Vargas-Sanchez, 2018).
Easyjet company can overcome such problem
Company start invention as it may brings new buyers to fold bit also provide also old
customer an reason to purchase products. And by building economic scale that can lower the fix
rate per unit and also try to build capacity & spending funds on research and development
department.
Suppliers Power
Power of suppliers are moderate, as there are limited number of suppliers those who
supply material to such airline companies. If suppliers enhances cost then it would affect pricing
of tickets and consumers may not take interest in such high cost products (Noe and et.al.,
2017)..
Easy jet Company can build efficient supply chain for various suppliers so that company
have more option for supply instead of depending on one. And by doing experiment with the
product decision by using unique materials, it would be helpful in remaining in competition
Buyers Power
Customers are the most important part of business, they have high power because if they
are not happy then they may switch the firm. This will disturb the profitability of Easy jet in long
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run. igher the bargaining power of consumer and if its larger their ability that seek to raise
discount and offers.
Easy jet company can counter the bargaining power of Buyers
As company builds the large customer base. It controls over consumer’s power consumer
as well as proved an opportunity to form streamline that boost the sales & production process
and also quickly bring innovation in the market
Substitute product’s threts
If same kind of services are available in market then consumers may move towards it
(Ethiraj, Gambardella and Helfat, 2016). The threats of substitute service or product is more if
offers an value that is way unique from current offering of industry.
Easy jet can overcome of substitute service/products
By just being an product oriented it should be an service oriented. And also try to
understand the requirement of the buyer rather than what an consumer is purchasing and provide
service according to the desire of the buyer. Also try to switch the rate of consumer.
Competitors power
British Airways etc. many firms are available those are offering amazing services to wide
range of consumers. There power is high because they can influence the profit of company by
making changes in their pricing strategies.
Company can handle and counter measures taken by intense rival among existing competitors.
There is option to merge with them or make partnership which will be helpful in generating
more sales and raising market share as well.
SWOT
Strength
Easy jet has good brand reputation and it is low cost flights in UL, specially among
business people and travellers. It is trustworthy on travel services and giving value added
services and it is known for friendly customer service. Clear CSR that geared towards reducing
company impact on environment. Having more modern plans to ensure safety and
reliability(Bryce, 2017).
Weaknesses
Airlines which are less in price are competition and fighting for customers is always lead
to price war. It is difficult for the company to keep strategy up due to over cost. Easy jet is not
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