Strategic Management: Competitive Advantage

This assignment focuses on strategic management, with an emphasis on gaining and sustaining competitive advantage. Students are required to analyze and discuss strategies using provided case studies, drawing from various theoretical frameworks such as Porter's Five Forces, Resource-Based View (RBV), Dynamic Capabilities, and others. The goal is to understand the practical application of these theories in real-world business scenarios.

Strategic Management
Contents

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Analysis of external environment and Industry competition of EasyJet.....................................1
TASK 2............................................................................................................................................4
Critical evaluation of resources and competencies of EasyJet....................................................4
TASK 3............................................................................................................................................5
Vision and mission statement of EasyJet.....................................................................................5
TASK 4............................................................................................................................................6
SWOT analysis of EasyJet...........................................................................................................6
TASK 5............................................................................................................................................7
Self-Assessment...........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In this modern era, strategic management in appropriate terms is considered as very
important to expand business operations across world. In this light, management of a company
should properly prepare its strategies as it would assist in achieving its business objectives in a
smooth manner (Ackermann and Eden, 2011). In this report, analysis of external environment of
Easy Jet along with industry competition in a country namely France is done. In addition to this,
resources of Easy Jet's as well as its competencies is also mentioned. Moreover, in order to frame
strategies, objectives and goals of cited business organization is also discussed. in this light,
strategic plan is made in order to relocate Headquarters of Easy Jet's is also explained. Also,
essence of Easy Jet, has demanded for for a specific number of persons or volunteers top hold
their materials or luggage in hold. In addition to this management of Easy jet has allowed to
board the flight at priority. This has been recognised as a strategy of Easy jet which can retain its
customers.
TASK 1
Analysis of external environment and Industry competition of EasyJet
In order to expand its business activities outside local area, it is rendered necessary to
properly evaluate and assess external environment of country. In this light, the senior most
managerial personnel of EasyJet company, which is one of the biggest company of UK engaged
in a business of Airlines. It is a notable fact as per, Barney, (2014), that external environment of
a firm is divided into three categories:
 General.
 Industry.
 Competitor.
Also, in accordance with views of David, (2011), activities related to strategic planning are
connected with conditions elaborated with reference in above said three constituents. The
external environment analysis includes various points such as political, demographic,
technological and sociocultural factors etc. So, in this regard, PESTEL analysis of EasyJet in
order to relocate its business operations in France, which is a member state of EU, is being
conducted by its management (Rahm and Riha, 2012). It can be demonstrated as follows:
 Political:
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 It includes various factors which are associated with different policies inn aspect of Tax,
terrorism, non-stability in politics and election etc.
 In this light, it has been assessed that if new policies in context of aviation and airlines
rules are framed by government affects working operations of Easy Jet to a great extent. Also, expansion of EU is responsible to render access to new markets across world.
 Economic:
 It can be seen as recession leads people to go for airlines which are of low costs.
Globalisation is a term which is responsible to enhance air travelling while the period of long
term (Freeman, 2010).
 European Union and US frames plans in order to recover from economic crisis. There are specified factors which are required to be included while assessment of
external factors such as Gross National product, interest rates.
 Social:
 In terms of social aspects, it can be seen as there is a huge rise in number of passengers
who are of old age or elder people.
 International migrants or students are increased. Number of EU immigrants and refugees are also get hiked. ( Keupp, Palmié and
Gassmann, 2012)
 Technology:
 In order to expand its business operations in outside he UK, EasyJet is allowed to create
and enhance competition and also has a potential to develop latest and new product.
 It has several alternative means of rendering services (Poister, 2010). It has evolved an effective e-commerce and e- marketing services and applications which
are considered as user-friendly.
 Environment:
 The cited organization has evolved advanced aircrafts and engine which are successful in
reducing and minimising noise pollution caused by noise pollution. Consumption of energy and emission of Carbon effluents is lower so as to protect
environment.
 Legal:
 EasyJet has allotted and assigned some rights which are associated with national airlines.
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 Compliance done in regard with employment and company law.
Figure 1External Environment Analysis
In addition to this, as per views of Priem, Li and Carr, (2012), for determination of industry
competition in France, analysis of EasyJet through method of Porter’s Five forces has been done.
It can be elaborated as follows:
 Bargaining power of Suppliers: It has been assessed that, power of suppliers of Easy
jet, to bargain is considered as high. If any decision is formed by Easy jet to buy an
airplane, then it is not possible for them to change supplier or that particular model of
aircraft. It is just because of the reason of extreme level of switching costs which arise
due to retaining employees and pilot of cited organization. For an instance, it can be said
that supplies outside the arena of European union is governed under law of EU. It can be
further noted that this will help Easy Jet company in maintaining and sustaining its
market positioning and also building an effective supply chain management.
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 Bargaining power of Buyers: In case of EasyJet, the rate of customers to bargain can be
considered as moderate as there are several other options in regard to airlines, available in
market area. So, considering this, EasyJet is able to administer its dependency by
application in terms of application of price strategy which proposes low prices to is
customers when they book their tickets at earlier time.
 Threats of New Entrants: It has been assessed that barriers to enter into Airlines
industry are at low value. In this light it can also be said that lower value of airlines
industry is responsible to penetrate market at lower cost.
 Threats of Substitutes: In case options available in against of EasyJet, the rate of threat
of substitutes is low.
 Rivalry among its opponents: The company namely EasyJet as many competitors in
market area of Airlines industry. It faces rivalry in aspect of low cost, for an example,
Ryanair, in terms of providing leisure activities.
TASK 2
Critical evaluation of resources and competencies of EasyJet
In accordance with the view of it can be said that in order to attain competitive advantage
over its rival companies, an organization needs to assess and analyse effective resources and core
competencies so that they can achieve their desired goals and objectives (Our Culture, Vision &
Values, 2017). In this light, the management of EasyJet is also authorised to have an assessment
of its resources which will lead them to success in relocation of company in new members’ state
of EU.
Considering this, as per management of company is held responsible for analysis effective
resources so that they would be able to create an efficient place in France in aspect of relocation
of its headquarters in France. Also, it has been analysed that it is vital to determine key factors
which lead to success and prosperity of a company (Yabs, 2010). In regards to Easy Jet its
resources and key competencies can be measured as effective key to success. In addition to this,
it has been required by cited organization to carry an investigation for evaluating the needs and
demand of customers.
In context of EasyJet, there are bases of demand are as:
 If company lower their prices, it eventually increases the demand for their services.
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 Also, it aims to achieve punctuality of aircrafts and airplanes.
 Furthermore, the cited company has excellent baggage delivery.
In words of, Hodgkinson, G.P. and Healey, (2011), it has been estimated that aforesaid
factors are liable to be observed as expectations of customers in context of every domestic airline
or aircraft. Nonetheless, there are some elements which can be seen as distinguishing factor
among EasyJet from other aircraft companies. In considering this, these factors can also result as
accomplishment factors.
Also, as in accordance with opinion of Hodgkinson and Healey, (2011) Once customer
value has been established then, organization needs to emphasise on competitive value in
prevailing market area. Following are considered as main sources held responsible for creation
and development of competition:
 It has been held that obstacles in case of entry should be at high level.
 In addition to this, financial resources that are required for setting up an industrial
establishment should be of a customary level.
 Efficiency in terms of costs should also be maintained.
Resources of EasyJet can be determined in terms of:
 Financial aspects.
 Technological.
 Human resource management. Also, France has a greater rate of productivity as
compared to UK.
 Capabilities and skills.
TASK 3
Vision and mission statement of EasyJet
“In order to assess performance of companies and its profitability, it has been evaluated that
vision statement and mission should be properly framed, so that they can be able to make them
more successful in near future”, said Hodgkinson and Healey, (2011) In this light, management
of EasyJet has also framed its mission and vision.
Vision Statement: The main vision of EasyJet includes to renew and expand its size of
fleet, which has a positive impact on costs of maintenance. It also includes introduction of
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additional power of bargaining with an assistance of increased amount of maintenance by which
it can negotiate with its workers.
Mission statement: Mission statement is a concept by which a company is in a situation to
explain and elaborate an essence or aim of formation of company. It involves the basis for which
it has been formed (Hodgkinson and Healey, 2011). Also, it includes services and products,
which has been intended by them to sell to its respective customers in simple words, it can also
be measured as an executive summary of an organization.
After having acknowledgment with the said statement, EasyJet has correspondingly framed
its mission statement which conveys:
“To deliver customers and consumers with good value, safe and point to point services of
air. Likewise, to influence and to offer a reliable and consistent product along with fares which is
in nexus to business and leisure markets with a range of European routes (Hitt, Ireland and
Hoskisson, 2012). To attain this, we will progress our people and employees who can establish
lasting relationships with our suppliers.
As, cited company has planned to expand its business operations in France. In this light, it
has framed its mission and vision in order to attain set goals and objectives.
TASK 4
SWOT analysis of EasyJet
SWOT Analysis is a term in which internal analysis is done in regard to a company. It can
be understood as an Acronym for strength, weakness, opportunities and threats. In other words, it
can be referred as a structural method of planning which performs an activity of Four elements of
a business institution (Hill and Jones, 2013). Beside this, a SWOT Analysis can be conducted by
the management of an organization in respect of product, company, industry or a person. Also,
specification in terms of aims and objectives of company and determination and identification of
internal and external factors which are favourable and unfavourable to accomplish that aim.
In context of EasyJet organization, manager is desirous of conducting SWOT analysis so
that they can have an eye check on their internal system. It has been depicted as:
 STRENGTHS:
 It has low price in respect of online booking and costs overheads. Along with this, it
facilitates less rapid turnaround times.
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 The main aim of EasyJet is to encourage punctuality in regards to timings of flight and
increased level of safety.
 In addition to this, brand name is also effective and easy to recall (Hill, Jones and
Schilling, 2014).
 Its main competitive advantage can be recognised in terms to provide quality services to
its customers.
 WEAKNESSES:
 The main weakness can be realised as under -consumption of resources and articles.
 It creates additional charges and is highly sensitive.
 EasyJet creates reliance on two models of airplane.
 Also, it lacks formation of strategies in terms of retain its customers and expansion of
business.
 OPPORTUNITIES:
 Through effective expansion of globalisation, opportunities and demand for air travel
continues to rise (Hair and et. al., 2012).
 New markets are opened in case of EU enlargement.
 THREATS:
 Market Saturation leads to creation of intensity in competition.
 Airport charges and taxes are likely to be raised by government.
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Figure 2SWOT Analysis
TASK 5
Self-Assessment
As per my views it has been assessed that strategic management is considered as an
integral part of society. Also, I learned that Easy Jet is a company which is considered as one of
the biggest tycoon among airlines industry in UK. It has framed its strategies in such a manner
which leads them to achieve competitive advantage among its rival companies. Also it has to
work upon its weakness with effective utilisation of strengths and opportunities.
CONCLUSION
From the above mentioned report, it has been comprehended that strategic management is an
essential part of a company to achieve its set goals and objectives. In this light, core
competencies and resources of EasyJet has been evaluated. In addition to this, it can be said that
there are various strengths and weakness of the cited organization. Moreover, its external and
internal environment has also been evaluated so as to achieve success in business expansion and
repositioning of its headquarters in France.
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REFERENCES
Books and Journal
Ackermann, F. and Eden, C., 2011. Strategic management of stakeholders: Theory and
practice. Long range planning, 44(3), pp.179-196.
Barney, J. B., 2014. Gaining and sustaining competitive advantage. Pearson Higher Ed.
David, F. R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Freeman, R. E., 2010. Strategic management: A stakeholder approach. Cambridge university
press.
Hair, J. F and et. al., 2012. The use of partial least squares structural equation modeling in
strategic management research: a review of past practices and recommendations for
future applications. Long range planning, 45(5), pp.320-340.
Hill, C. W. and Jones, G. R., 2013. Strategic management theory. South-Western/Cengage
Learning.
Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Hitt, M. A., Ireland, R. D. and Hoskisson, R. E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
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Hodgkinson, G. P. and Healey, M. P., 2011. Psychological foundations of dynamic capabilities:
reflexion and reflection in strategic management. Strategic Management Journal, 32(13),
pp.1500-1516.
Johnson, G and et. al., . Exploring strategy text & cases (Vol. 10). Pearson.
Keupp, M. M., Palmié, M. and Gassmann, O., 2012. The strategic management of innovation: A
systematic review and paths for future research. International Journal of Management
Reviews, 14(4), pp.367-390.
Poister, T. H., 2010. The future of strategic planning in the public sector: Linking strategic
management and performance. Public Administration Review, 70(s1).
Priem, R. L., Li, S. and Carr, J. C., 2012. Insights and new directions from demand-side
approaches to technology innovation, entrepreneurship, and strategic management
research. Journal of management, 38(1), pp.346-374.
Rahm, B. G. and Riha, S .J., 2012. Toward strategic management of shale gas development:
Regional, collective impacts on water resources. Environmental Science & Policy, 17,
pp.12-23.
Yabs, J., 2010. Strategic management practices.
Online
Our Culture, Vision & Values, 2017. [Online]. Available through: <
https://careers.easyjet.com/why-easyjet/culture-vision-and-value/>. [Accessed on 08yh
July, 2017].
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