Strategic Management Report: EasyJet's Austrian Move

This report provides a comprehensive strategic analysis of EasyJet's planned relocation of its headquarters from the UK to Austria, addressing the implications of Brexit. The analysis begins with a PESTLE analysis, evaluating the political, economic, social, technological, legal, and environmental factors influencing EasyJet's operations and competition within Austria, particularly against Ryanair. The report then delves into a VRIO framework, assessing EasyJet's resources and competencies to gain a competitive advantage in the Austrian market. This includes evaluating the value, rarity, imitability, and organization of EasyJet's resources. A comparative analysis of EasyJet's vision and mission statements is presented, followed by a SWOT analysis to identify the airline's strengths, weaknesses, opportunities, and threats, leading to recommendations on adjusting the business-level strategy. The report provides a detailed overview of the airline industry, competition, and the strategic decisions made by EasyJet to ensure its continued success in the European market.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Explanation on pestle analysis of easy-jet and its competition within Austria.......................1
2. Description on VRIO framework of easy-jet resources as well as competencies in order to
get the competitive advantage in relocating in Austria...............................................................4
3.Comparative analysis of the vision and mission statement of the Easy jet..............................6
4. SWOT analysis on easy-jet and recommendation on changing business level strategy.........6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The term strategy means formulation of a process and to execute them in the terms of
achieving particular task in the organisation. The preparation of task is usually done by the top
level of managers. The strategic function is required to perform at the organisation in order to
achieve the firm success. Strategic management is the process which is inclusive of the process
like goal setting, strategy execution, implementation and monitoring. In this project report it has
been addressed to develop the strategic plan in order to relocate headquarters from UK to Austria
(Ma and et.al., 2017). There recent competitors are legacy airline and charter airlines. They have
affordable rate of fares. With effective strategic planning they can promote the growth in the
market. Easy jet is British airline operating under the low cost carrier in London. It operates in
domestic and international routes in over the world. Easy jet wants to expanding their business
and airline services in the Europe after the Brexit.
1. Explanation on pestle analysis of easy-jet and its competition within Austria.
There are many factors which are directly or indirectly effect on the establishment and
operation of the airline industry. PESTLE analysis is providing all the information about cause
and effect of the establishment of easy jet in Austria.
Political factors- Easy jet wants to open a headquarters in the Europe but to continue the
flights after Brexit is unable. Easy jet searching and trying to get license from EU country while
there are many uncertainties in business. Without the license easy jet unable to continue flights
between the European countries. For reconstruction of the business they will involve into 110
aircraft in Austrian economy (Mohapatra and et.al., 2017).
Economical factor-There are many economic factors which are faced by the easy jet
during the expansion of the air line business in Austria. The revenue is increasing by 2.2% on the
constant currency but upcoming four months booking is secured by 67%. By the Brexit booking
of seats and revenue is increasing simultaneously but after the quarter the revenue can be
decreased by 2%.
Inflation rate, oil prices, economic growth is also considered in this segment.
Social- Air travel has given all nations the freedom to travel. It connects people,
countries, and cultures, providing access to global markets. In addition to tourist travel, air
transport also provides the essential function of allowing the speedy delivery of medical supplies,
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organs for transplantation, and emergency. By easy jet there are many opportunities for the
society and many job vacancies are providing by the company.
Technological-In airline market technology evolves very speed and this technology is a
differential of the others companies. Research and development has a high impact on industry.
The company that has a high R&D will have less wastage, less time spent and will always focus
on the product to be developed. Online system and digital media information are very easily
reached and paper work is reduced. Through the technological impact on the easy jet in Austria
research and development is very crucial.
Legal factor- In legal factors easy jet tries to get the license to the EU country but there
is the currency changes by Brexit their government does not provide the licenses to stating the
airlines. International laws are another big challenges for the industry. The government sets their
standard and air control rules in their regions. Agreements should be required in this sector about
the passenger, destiny and other relate information. Increasing regulation by government is
affecting the growth of airline company.
Environment factors- environment regulation and government are set their standards to
avoid are pollution and the emission from the carbon is reduced by 2020.company has to reduce
the materials which can be hard for the environment and recycling as much as possible to
contribute to make a “green” environment. Use of environmentally products which are not harm
the nature and environment.
Competition in the easy jet on the basis of five Porter forces-
The competition is on high level in Austria among airlines. Due to increase in
competition the fair rates is pulling down. The rise of competition among the easy jet airline is
due to its low cost of travelling (Chiu and et.al., 2017). The main competitor of the easy-jet is the
Ryanair which is the low cost airline of the Eu before obtaining operate certificate by Austria.
This both airline have similar routes. The main object of easy-jet is to provide good and safe air
services to their customers.
The competition of market can be managed by evaluating Porters five forces with regard
to easy-jet-
Bargaining powers of buyers- The main source of gathering customer attraction is based
on the low fares as compare to the other airlines. The easy-jet has the cost advantage power in
order to create the competition in the market. The Ryanair and easy-jet both follow the same
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route. They use those secondary airport which are far from cities and take more time. But in the
case of easy-jet they use the closet route which is suit to the business customer. Hence, the
bargaining power of easy jet is low.
Bargaining power of suppliers- the three supplier are as airline industry, aircraft supplier
and petrol supplier. They are trying to cope up with t his three of power suppliers. They are
taking advantage in promoting their services at the times when they needed the most. The
effective service always become the source of attracting the wider range of customer. Hence, the
bargainig power of suppliers in easy jet is high.
Threat of new entrants- In airline industry there are wide range of airline services which
is main obstacle in present scenario. To start up the new airline company needs a large amount of
investment. Easy-jet offering the low fare cost airline. It has become the huge barrier to the new
entrants. The market competition in airline industry is high and new entrants are increasing
continuously in airline industry.
Rivalry among existing firm- The main competitors of easy-jet are Ryanair, BMI Baby
etc. the difference between Ryanair and easy-jet is that it uses the close route of cities which is
main advantage to the business class people (Kumar and et.al.,2017).
Threat of substitute- They have there alternative like customer also can prefer rail,
vehicle. But by travelling with this substitute is are cost and time consuming which has low
threat to the easy-jet by rail and vehicles. These are mostly comfortable source for the business
class people in order to eliminating the unnecessary cost. The transportation facilities are
increasing day by day which is cutting down the services of easy jet.
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2. Description on VRIO framework of easy-jet resources as well as competencies in order to get
the competitive advantage in relocating in Austria.
Vrio framework- The resources of easy-jet and there competencies can be easily known
with the help of the vrio analysis of easy-jet. It is defined as-
1. V(valuable)- The value of the airlines reflect the ambition or shape of the company as
well as their people relate to them. The value is based on following key elements.
 Safety- The easy jet is taking various measure in order to maintain the safety in
their services. It is required to be done in all aspects.
 One team- the all the people who are working under the easy-jet works as one
team in order to achieve the firm growth (Shih, Mendelson and Techet 2017).
These both element work as adding the goof value to the easy jet.
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Illustration 1: porters five forces
(source: Chiu and et.al., 2017)

2. R(Rare)- The rarity of the easy-jet services is are their cost advantage. The affordable
feature of fare attract the large number of customer. They provide the easiest route of
facility to the customer. These all element are the key point in order to gather the
attraction of business class people.3. I(Imitable)- There are various features which cannot be copied from the other substitute
of them. To start up the new business of airline company need huge amount of
investment so to cope up with this there basic fare are at the high amount. In this regard
the basic fair cost of the easy-jet is lower. It acts as imitable feature to the easy-jet.
4. O(Organized)- There organisation in Eu is settled as most demanding airline. Currently
they started giving there operation services in the Austria. They have the two basic
advantage that is to deliver low fares and operational efficiency to the customer. They
have the highest credit rating in the world. They have the wide sitting arrangement which
is the most flexible feature to the easy-jet (Belton, 2017). They have their interaction with
the stakeholders which is the impressive feature to the easy-jet services.
These all factor define the resources of easy jet as well as their competencies in order to get the
competitive advantage in the country like Austria. It has recently started there operation there.
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Illustration 2: vrio analysis
(source- Conrady, 2016)

3.Comparative analysis of the vision and mission statement of the Easy jet
Mission is a statement which shows a gap between the current situation and what are the
future requirements of the company. It is a statement that describes the company's business, its
goals and its approach to reach those objectives.
Vision is a statement which describe the future desired future position of the
organisation. It is a roadmap for the organisation to accomplish its objectives.
In the support of this we did an analysis of the current vision and mission of the company
Easy-jet which is becoming a new member of the European state Austria. After conducting the
analysis we have understood that the current vision of the Easy-jet in UK is- “to be Europe's
preferred short haul airline, delivering market- leading returns, and making travel easy and
affordable for all”. And its current mission statement is - “To provide its customers with safe,
good value, point -to-point air services. To effect and to offer a consistent and reliable product
and fares appealing to leisure and business markets on a range of European routes. To achieve
this they will develop their employees and establish lasting relationships with our suppliers.”
Easy jet would establish a new airline in Austria to protect rights in the European union. Easy-jet
is to open a new European headquarters in Austria to enable it to continue to operate flights
within the EU after Brexit (Cozza and et.al., 2017). For a strategic change due to Brexit it will
change its Vision statement “ To protect the right in the European union and to minimise
disruption and maintain flights within the continent from 2019.” and the Mission of the Easy-jet
will be the same.
4. SWOT analysis on easy-jet and recommendation on changing business level strategy.
The swot analysis has to be done in order to know the key strength ans weaknesses of the
easy jet in relation to the business level strategy (Conrady, 2016).
Strengths-
Easy jet offers reliable traveling experience to its travelers with some additional facilities
related to the comfort of individuals. Moreover, the airlines has customer loyalty and also
focuses on corporate social responsibilities.
Weaknesses
The companies major weakness is its market competition from other leading airline who
offer traveling at cheaper rates and even easy jet do not provide free meals on long hours
journeys.
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Opportunities
Easy jet can grab the opportunity of expanding its market in new regional market of
Europe. Besides, the airline company can offer schemes and traveling experience at discounted
price to attract more number of buyers. The Airline can even expand its market by joining hands
with other airline organizations. (Sengur and Sengur, 2017).
Threats
The major threat easy jet is increasing airport charges, competition from other airline
companies. Increasing taxes and fuel rates are affecting the growth and development of Easyjet.
Strengths weaknesses
 Culture of easy Jet.
 Good administration.
 Employee’s satisfaction.
 Good reputation.
 Brand identity.
 Global position.
 Case of accidents.
 Services offered.
 Increase price fare due the high price of
fuel.
Opportunities Threats
 Growth of market share.
 Explore continental flights.
 Special flights to China.
 Growth of tax.
 Price of fuel
 Strong competitive market.
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 Differentiated services.
 Joint ventures, mergers, acquisition.
 New services offered.
 Terrorist attack
CONCLUSION
From the following project report it has been concluded that this has focused on the
issues related to the facilities of easy-jet in order to relocate their business in the EU member
state of Austria. In addition to this there is description on the services of easy-jet. These all the
factors and resources, their competency has been justified with the Porter five forces, SWOT
analysis and Pestle analysis of easy-jet. The recommendation is also given with regard to change
in business-level strategy. The all the facts and figures in this report is based on true and relevant
research.
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REFERENCES
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online
Strategic management, 2017.(online).Available
through:<http://www.businessdictionary.com/definition/strategic-management.html>.
[Accessed on 21st julay]
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