Ansoff Matrix Evaluation of EasyJet's Innovation Strategies

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This report evaluates EasyJet's innovative practices, both online and offline, using the Ansoff Matrix as a framework. The analysis covers market penetration, market development, product development, and diversification strategies employed by the airline. The report provides an overview of EasyJet's business, its adoption of technology, and its efforts to enhance customer experience. It examines specific examples of online innovations, such as mobile apps, mobile boarding passes, and engineering innovations, and assesses their impact on the company's growth and market share. Furthermore, the report analyzes offline innovations, including services like auto bag drop and holiday packages. The report provides a recommendation based on the findings and concludes by summarizing EasyJet's strategic approach to innovation and its position in the low-cost carrier market. This report is a valuable resource for students studying business development and strategic management, providing insights into real-world application of the Ansoff Matrix.
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Running Head: E-Business
E-Business
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E-Business 1
Contents
Introduction......................................................................................................................................2
Overview of company......................................................................................................................3
Ansoff Matrix Overview..................................................................................................................3
Analysis and evaluation of the Easy Jet online innovation using Ansoff Matrix............................5
Market development....................................................................................................................6
Diversification.............................................................................................................................7
Market Penetration.......................................................................................................................9
Product development...................................................................................................................9
Analysis and evaluation of the Easy Jet offline innovation using Ansoff Matrix.........................10
Market development..................................................................................................................11
Diversification...........................................................................................................................11
Market penetration.....................................................................................................................12
Product development.................................................................................................................12
Recommendation...........................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Bibliography..................................................................................................................................17
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E-Business 2
Introduction
The company selected for the evaluation is an Easy jet, a British airline company. The aim of the
report is to evaluate the positive and the negative outcomes of the online and the offline
innovative practice that is conducted by the company. Innovation has been the part of the DNA
of the company. The company believes that they have provided new ways to the customers
which made the people fly in the sky. The change in the working occurs because of the updates
in the technology. The company is making use of the digital, web, engineering and operation
innovation to enhance the customer experience with the customers. The evaluation of online and
offline innovation practices is done considering the Ansoff’s matrix of the company.
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E-Business 3
Overview of company
Easy Jet is British airline which is a low-cost carrier; the company is based at London Luton
Airport. The company operated both international and domestic services across 820 routes and in
more than 30 countries. The company came into the existence in the year 1995 and since that
time only the company is acquiring the other companies. The company was formed by Stelios
Haji-Loanno, in the year 2016; the company took 2 planes so that they can start their operation
with their first flight from London Luton to Amsterdam. The company started offering tickets
online in the year 1988. The company involved in the merger of the Easy Jet and Go fly in the
year 2002. In 2014, the company carried more than 65 million passengers and in Europe, the
company is the second largest airline behind Ryanair. The aim and object of the company are to
satisfy the needs of the company by providing them services in low-cost. Along with this, the
company believes in providing both online and offline innovative practices to the customer
which enhances the convenience of the customers.
Ansoff Matrix Overview
This model is applied to the strategic marketing planning which is used to overlook at the
opportunities to grow into the market through developing new products and services in the
existing or in the new markets. In simple words, this matrix is used by the companies to evaluate
the future opportunities of the company (Shaw, 2016). The matrix consists of market penetration
strategy, market development strategy, diversification strategy and the product development
strategy.
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E-Business 4
(Source: Shaw, 2016)
Market development- The market development shows how to enter the new markets.
Considering the easy jet perspective, how the company will provide the online and the
offline innovation practices in the new market.
Market penetration- The market penetration refers to as when an organization tries to
sell its existing product and services in the existing market. In other words, it is said that
the company tries to increase the market share in the existing market with the existing
services. The easy jet company is providing the offline and the online innovative
practices in the existing market.
Product development- In this category, the company tries to create new products and
services targeted at its existing market to accomplish the growth. The easy jet created the
new online and offline innovative practice for the existing market.
Diversification- The diversification comes when the company tries to offer new services
to the customers in the new market (Hussain, Khattak, Rizwan, and Latif, 2013).
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E-Business 5
Analysis and evaluation of the Easy Jet online innovation using Ansoff
Matrix
The company is bringing new innovation in the products and services that are giving an
opportunity to the company to grow in the existing and in the new market. Below given is an
evaluation of the online innovation with the use of the Ansoff matrix.
Ansoff Matrix
New Market Market Development Diversification
The company is trying to expand the
business in the new potential market
with the use of the online innovative
technology. This enables the
company to achieve the objective of
growth and profitability (Easyjet,
2017).
The easy jet is offering new online
innovative services and products to
their customer and it is very unique
and it is related to the technology.
Examples- Mobile app, and Mobile
host and mobile boarding pass
Examples- Drone and Robotic
Technology, 3D Augmented reality
technology and engineering
innovation
Existing Market Market Penetration Product Development
The Easy jet company is using the
existing offerings in the existing
The Easy Jet designed the new
technology that helps the company
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E-Business 6
market to enhance the market share
(Madsen, 2014).
to get the growth in the existing
markets.
Examples- Digital advertisement,
Apps, and Passport Recognition
Examples- Apple watch, paperless
aircraft, and AVOID
Existing products New products
The online innovation practices conducted by the company considering the Ansoff matrix are
clear with the table given above.
Market development- The easy jet provides existing online services in the new market like
a Mobile app, and Mobile host and mobile boarding pass. These facilities are essential for the
new market where the company recently started its operations.
(Source: Easyjet, 2017)
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E-Business 7
Mobile App- The mobile app allows the customers to check in for flights, to book tickets,
downloading the boarding pass, and getting the real-time information on flight status
(Budd, and Vorley, 2013).
Mobile boarding pass- The easy jet has added the mobile boarding function in their app
that provides the convenience to the customer to check in less than 10 seconds. This
service is available for the iPhone and Android Phones.
(Source: Easyjet, 2017)
Mobile host-This function on the mobile app is useful for the passengers to make the
journey easier for the passengers. It combines the details from the airport related to the
customer flight. The app provides the personalized instruction and updates to the
customers time to time during their journey (Adamcik, Galanda, Jencova, and Sulej,
2017). Though, continues updates from the company might irritate the customer and then
might be they uninstall that app.
Diversification- Easy jet is bringing the diversification of the services and the products that
they are offering to the customers.
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E-Business 8
Engineering innovation- The easy jet company is applying the new cutting-edge
technology that helps the Airbus A319 and A320 aircraft feet to run effectively, safely
and efficiently. This provides the safety to the customers in the new markets that help the
company in forming the image in the market which enhance the opportunity for growth in
the market.
Drone and robotic technology- This technology is used by a company to scan and assess
the planes so that they can repair the same and ensure the safety to the passengers
(Krajnik, Vonásek, Fiser, and Faigl, 2011).
(Source: Easyjet, 2017)
3D Augmented reality technology- This technology enables the remote engineer team to
see what exactly pilot is able to see with the use of Virtual reality glasses. This
technology is used by the company in some of the remote airports.
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E-Business 9
(Source: Easyjet, 2017)
Market Penetration- Easy Jet provides the existing products online products and to enhance
the shares in the market. The company makes use of the digital advertisement which helps the
company to generate the awareness among the passengers. There are some of the apps which are
used by the company to provide the facility to the engineers to check the safety measures in the
flight for the customers. The passengers in the new market make use of the iOS or Android
device that helps the company in scanning the passport details with the use of the mobile camera,
which makes it quicker and easier for the customer to check-in (Easyjet, 2017). The information
of the customers is going to be stored in the device for future booking. Though, development of
the technology needs the huge amount of these technologies are very expensive.
Product development- The new online product will help the company to get the opportunity
in the market, the product introduced by the company includes Apple watch, paperless aircraft,
and AVOID. The product development is expensive apart from it there is a need for the team
who can actually research to understand the customer needs (Easyjet, 2017). Considering the
customer needs the research team needs to develop the product. Though this process is a time
consuming process but it provides the satisfaction to the customers.
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E-Business 10
(Source: Easyjet, 2017)
Analysis and evaluation of the Easy Jet offline innovation using Ansoff
Matrix
The company not only deals in the online innovation but also believes in offline innovation that
is provided by the company to the customers and these offline innovative products help the
company to growth in the existing and potential markets.
New Market Market Development Diversification
The company is trying to expand the
business in the new regional routes of
Europe. This enables the company to
achieve the objective of growth and
profitability by providing the offline
product and services.
The easy jet company offers
different offline products at the
airport which is not provided by the
most of the airlines.
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E-Business 11
Examples- Auto bag drop, Ticket
Booking Facility and cabin and
onboard services.
Examples- Easy jet hotels and Easy
Jet Holidays, and package holidays
Existing Market Market Penetration Product Development
The company is using the existing
services and through this company is
willing to enhance the market share.
The company is offering these
services to the customer for customer
satisfaction and better experience.
The new products are designed by
the company that helps the
company to get the growth in the
existing markets.
Examples- Loyalty products, Cab
facility, Missed flight cover (Easyjet,
201)
Examples- Holiday taxis, Benefits
for business travel and frequent
flyer in cost of tickets
Existing products New products
Market development- Easy Jet believes that offline practice is important along with the
online practice. The services like Auto bag drop, Ticket Booking Facility and cabin and onboard
services are provided by the company in the new markets as these are the existing products of the
company (Bakatselos, 2015).
Diversification- Most of the airline companies only provide the services related to the airline
but easy jet provides the service related to the accommodation and holiday packages to the
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