EasyJet Case Study: Enhancing Service Quality through Benchmarking

Desklib provides past papers and solved assignments for students. This report analyzes EasyJet's quality management.

Managing Quality in Hospitality, Tourism and Events
1

Executive Summary
The airline industry is a significant part of the hospitality sector of a market economy. The
services provided by airline operators to the customers ensure the enhancement of the travel and
tourism section in the business economy. The study provides a brief idea about the issues that
easyJet experiences in their business operations and provides recommendation based on the
quality management aspects that would benefit the company. The study examines the capabilities
and competencies of easyJet through a VRIO analysis in order to develop an appropriate
understanding of the resources available within the organisation. The impact of benchmarking
techniques in the quality management procedure for easyJet has been performed in the study to
develop recommendations that would improve the brand image of the company through
improved customer and employee satisfaction rates.
2

Table of Contents
Introduction......................................................................................................................................4
Main Body.......................................................................................................................................5
Conclusions and Recommendations..............................................................................................11
Reference List................................................................................................................................12
3

Introduction
Quality is an essential aspect for organisations operating in the service sector. The aspect of
providing proper quality of services and products to customers is necessary for any organisation
operating in the travel and hospitality industry. Managing the quality of services is necessary for
companies in the service sector as it ensures growth and sustenance of brand image in the
competitive market economy. The necessity of quality management is recognised through the
course of this study on the business operations of easyJet in the business environment.
The following study is conducted on easyJet, established in 1995 as UK’s cheapest flight across
300 countries (Easyjet.com, 2019). The company operates long and short-haul flights in over
1000 routes throughout the world. Recently the brand has experienced an increase in negative
reviews from customers and dissatisfaction among the employees due to poor payment structure.
The following study will provide a brief understanding of the issues easyJet experiences,
capabilities and competencies of the company to deliver appropriate quality of services. The
impact of benchmarking procedure on the company’s business operations would be evaluated
and recommendations would be framed in the study.
4

Main Body
1. Current problems of easyJet
The airline operator easyJet launched their flights in the market economy with the USP of being
the cheapest flight available against several contenders. The success of the company was solely
based on the prices they offered to the customers. Recently the company experienced several
issues in their business operations and though the revenues of the organisation grew in the
competitive market economy, easyJet’s customers were not satisfied with their services.
According to the customer reviews, the company follows a poor flight booking and cancellation
system and the staffs execute misbehaviour often times with the customers (Tripadvisor.in,
2019). There have been serious complaints against the staffs of the airline company for being
rude and unhelpful to the customers. The following are some of the major issues that easyJet
experiences in their business operations in the competitive market economy:
 High customer dissatisfaction influences the business operations of easyJet as increased
customer dissatisfaction reduces the brand image of the company in the market
economy. The customer service and relations activities followed by the company are
capped at low quality and the company is now compared as one of the worst airline
operators in the UK. Customer management and satisfaction are low for the organisation
due to the flight booking and cancellation policies the company adheres to in their
business performance (Trustpilot, 2019). Customers complain that purchasing a ticket
does not guarantee a seat for them as easyJet complies with an ineffective overbooking
policy in order to function as the cheapest flight operator in the UK economy.
 High levels of employee dissatisfaction reduce the efficiency of the employees at their
job role. This can be observed in case of easyJet through the negative feedback the
company has received on social platforms. Dissatisfied employees within the
organisation result in poor quality of services provided to the customers (Hill and
Alexander, 2017). EasyJet employees are poorly paid and experience lack of motivation
in their job roles. This proves that the company does not practice appropriate employee
engagement and motivation strategies within their job roles. Since the company operates
5

as a cheap flight operator, serving 1000 routes within the UK and EU territory, there are
low profit management conditions within the organisation.
 Mismanagement of resources for the organisation can be viewed as a serious issue for
the organisation. It is evident from customer reviews that easyJet has plenty of available
resources that are not effectively utilised by the organisation. The company follows a
weak policy of communicating with the customers and addressing their grievances and
lacks in effective employee engagement policies (Guest, 2017).
Combination of these issues has influenced the brand image for the company in the competitive
market economy. EasyJet is being compared with Ryanair as the two worst flight operators in the
UK market economy. These attributes have resulted in poor customer relations and unmotivated
employees within the company. The impact of lacking motivation among the staffs is identified
in the performance of the organisation in the market economy (Goffee and Scase, 2015). The
efficiency of the staffs in providing quality services to the customers is based on the motivation
level of the staffs regarding the job position. EasyJet does not maintain appropriate employee
satisfaction within the organisation to develop the staffs’ service quality. Travel and tourism
industry operators function in the competitive market economy through the quality of services
they provide to the target demographic. In comparison to other organisations, airline operators
need to be more efficient and provide excellent quality of services to the customers.
EasyJet fails to provide appropriate service quality to their customers in a competitive economy.
The low employee and customer satisfaction levels including poor communication with the
stakeholders reduce the brand image of the company and affect the reputation of the company in
the business environment (Noe et al., 2017). Identification of the SERVQUAL factors in relation
to the operations of the services provided by easyJet would provide a deeper insight into the
operational functions of the company that needs to be improved in order to gain competitive
advantage in the market economy.
2. Examination of easyJet’s competencies and capabilities
In order to identify an organisation’s competencies and capabilities it is essential to perform a
VRIO analysis of the activities performed by the organisation. A VRIO analysis provides the
6

uniqueness of the resources available to the organisation that would enable the organisation to
succeed in the competitive economy.
Resources/Capabilities/
Competencies
Valuable Rarity Inimitability Organisationa
l ability
1. Low price for flights and other
services
Yes Yes No Yes
2. Wide network of routes Yes No No Yes
3. Varied presence of communication
channels
Yes No No No
4. Popularity among consumers Yes Yes Yes No
Table 1: VRIO analysis of easyJet
(Source: Created by the learner)
The VRIO analysis provide a brief overview of the resources that easyJet fails to utilise
appropriately in their business operations (Holloway, 2017). Due to the lacking aspects of these
capabilities and competencies within the business operations the company fails to provide good
quality of services to the customers. Considering the SERVQUAL dimensions of Service
Quality, which all service-providers needs to maintain, in order to succeed in the competitive
market economy. The airline industry operators have to develop their service quality with the
intention of providing reliability, responsiveness, assurance and empathy towards the internal
and external stakeholders (Hemsley-Brown and Alnawas, 2016).
The competencies those are beneficial for airline operators to function successfully in the
competitive market economy is observed as availability of low price for flights that other
organisations do not provide to their customer base. EasyJet functions in the competitive market
economy by developing services at low cost and attracts customers from other brands. The
importance of availing a wide network of routes within the business environment for flight
operators is essential as it allows the companies to serve a wider consumer base (O'Connell and
Williams, 2016). EasyJet offers their customers with a variety of flight routes thus utilising the
competency effectively.
7

The ability of a service sector company to communicate with their consumers initiates the
growth of the company in the business environment. The need for communicating with the
consumers regarding their grievances and issues provides the companies with an effective
understanding of the customer needs and requirements. It is essential for brands to maintain
communication channels with the consumer market economy in order to develop the quality of
services and improve the brand image (Lovelock and Patterson, 2015). EasyJet has a variety of
communication channels for understanding the customer views; however, the company fails to
maintain appropriate customer relations and address their grievances effectively.
The popularity of a service brand within the market economy is essential for the organisation to
succeed in the competitive business environment (Ansari and Riasi, 2016). It is evidenced from
the results attained form market survey that the popularity of brands in the service sector
enhances the profitability of the company in the business environment. EasyJet fails to utilise the
popularity of the brand in the UK market economy, as they do not cater to the grievances
reported by the consumers. This influences the brand image of the organisation and employee
satisfaction within the business environment.
Considering easyJet’s lack of organisational ability to implement the existing capabilities within
the organisational context, it can be stated that the company does not fulfil several tenets of the
SERVQUAL dimensions. According to the customer reviews, the staffs at easyJet do not show
empathic behaviour towards consumers (Trustpilot, 2019). The company does not fulfill the
reliability and assurance dimensions, as they do not provide the consumers with appropriate
benefits and quality of services as expected from them. Lack of communication with the
customers also proves that easyJet does not maintain appropriate responsiveness in their service
providing activities.
3. Impact of Benchmarking on easyJet’s quality management
In order to improve the quality of services provided by the organisation to the target consumer
demographic it is essential for the management to implement strategies to improve the quality of
their business operations. The impact of possessing business operations that are of appropriate
quality allows the company to develop their brand image in the market economy effectively.
Total Quality Management (TQM) as a concept can be implemented in the business operations
8

for service sector industries (Ross, 2017). It implements a procedure of continuous development
of procedure that improves the quality of services as per industry standards and consumer
demands.
Considering the benchmarking procedure as an effective TQM strategy, easyJet would benefit
from implementing the tactics in their services. Benchmarking as a TQM strategy involves
comparison between the service qualities of the high performing organisations and the low
performing companies in the market economy. This strategy involves using the service quality
markers of high performing brands as benchmarks for poor performing organisations to improve
their competitive stance in the market economy (Kaleka and Morgan, 2017). The procedure
creates a framework for organisations to achieve through their business performance a certain
level of quality that would improve their brand image in the competitive market economy. The
attributes of benchmarking process when applied within the business operations of an
organisation refers to the continuous development of services within the organisational context.
Advantages of benchmarking system within the operations of a company can be stated as:
 Improvement of performance in the competitive business environment is availed through
the constant comparison with better performing organisations.
 Creation of new paradigms through the implementation of this tactic in the business
environment allows companies to identify new ways to modify their services that would
improve the competitive advantage for the organisation.
 The implementation of this technique in TQM procedures for service sector operators
allows the company to draw changes in their services. This enables growth and
improvement for the company in the competitive market economy.
Despite the benefits, benchmarking techniques provide to the organisations, there are several
drawbacks to the strategy’s application in the business operations for the company:
 This method’s application in the business operators reduces the ability of the organisation
to develop unique strategies for improvement in the market economy. The
implementation of benchmarking technique involves the company’s inability to assess the
competitors’ situation and resources. Blindly following the competition’s strategy proves
dysfunctional for the company.
9

 The complacency factor also serves as a disadvantage in applying this technique in
enhancing the competitive advantage for the organisation. The organisation after
achieving the benchmark from the competition’s viewpoint often fails to maintain the
quality achieved. This results in reduced customer satisfaction and diminished brand
image.
 Benchmarking procedure if implemented within an organisation needs to follow an
effective planning strategy to incorporate changes within the business operations for the
organisation. Since companies fail to implement the change technique along with the
benchmarking procedure in their TQM standards, the functional performance of
benchmarking fails for the organisation.
Benchmarking, as a comprehensive procedure of quality management within the organisational
context, is implemented within companies’ business operations through the PDCA cycle. This
enables the organisation to plan, do, check and act procedures in their business operations. The
strategy involves planning the changes that needs to be incorporated within the business function
of the organisation. Based on the planning process, the company needs to implement TQM
procedures such as benchmarking in their business function in order to operate successfully in
the market economy. Checking allows the company to evaluate the modifications that would
help the company to achieve better results in the market economy.
Considering easyJet’s situation in the market economy, application of benchmarking would
improve the organisation’s brand image through appropriate implementation of tactics that
industry leaders implement in their business operations. The company can compare their quality
of services with the quality provided by Lufthansa or Qatar Airways. This would provide the
company with an effective understanding of their shortcomings. Ensuring the changes within the
organisation are implemented according to the SERVQUAL dimensions, easyJet has to maintain
a continuous quality management function within their business function. Development of the
company’s services according to the quality of services evident among the competition enables
the brand to succeed in the market economy.
10

Conclusions and Recommendations
It is observed from the study performed above that easyJet suffers from poor management of
services and lack of employee satisfaction within the organisation. This influences the customer
satisfaction levels for the organisation. It is evident from the study that easyJet is experiencing
mismanagement of services and customer relations in their business operations. This enhances
the difference between other successful brands and the company. EasyJet has to implement better
customer relations and employee engagement tactics in their business operations to improve their
brand image in the competitive market economy. The effectiveness of TQM strategies in the
business development tactics would be evident by the improvement in quality of services
provided by the organisation towards their consumers.
EasyJet can implement the following tactics in order to function efficiently in the market
economy:
 Develop better employee engagement tactics within their organisation while maintaining
appropriate employee satisfaction activities is beneficial for any organisation operating in
the service sector. EasyJet can achieve better results by adhering to the policies that
Lufthansa airlines or Qatar airways follow in their business operations.
 Customer satisfaction levels could be enhanced by the organisation through an effective
implementation of communication strategies in their business operations (Mone and
London, 2018). The efficiency of the company in maintaining appropriate
communication with the consumers would allow the management to identify their
grievances and modify their policies accordingly.
 Developing better payment structure would motivate the employees to provide better
quality of services to the consumers. This would improve the consumer satisfaction level
as well as the brand image of the company. The quality of services developed by the
brand in the competitive market economy could be maintained through the benchmarking
technique, as easyJet would be able to gain ideas from industry leaders to improve the
quality of the services.
11

Reference List
Ansari, A. and Riasi, A., 2016. An investigation of factors affecting brand advertising success
and effectiveness. International Business Research, 9(4), pp.20-30.
Easyjet.com. 2019. Home | easyJet.com. [online] Available at: https://www.easyjet.com/en
[Accessed 28 Mar. 2019].
Goffee, R. and Scase, R., 2015. Corporate Realities (Routledge Revivals): The Dynamics of
Large and Small Organisations. Routledge.
Guest, D.E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework. Human Resource Management Journal, 27(1), pp.22-38.
Hemsley-Brown, J. and Alnawas, I., 2016. Service quality and brand loyalty: the mediation
effect of brand passion, brand affection and self-brand connection. International Journal of
Contemporary Hospitality Management, 28(12), pp.2771-2794.
Hill, N. and Alexander, J., 2017. The handbook of customer satisfaction and loyalty
measurement. Routledge.
Holloway, S., 2017. Straight and Level: Practical Airline Economics: Practical Airline
Economics. Routledge.
Kaleka, A. and Morgan, N.A., 2017. Which competitive advantage (s)? Competitive advantage–
market performance relationships in international markets. Journal of International
Marketing, 25(4), pp.25-49.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Metro.co.uk. 2019. Easyjet and Ryanair among top 10 worst airlines in the world | Metro News.
[online] Available at: https://metro.co.uk/2018/06/06/easyjet-ryanair-among-top-10-worst-
airlines-world-7610081/ [Accessed 28 Mar. 2019].
Mone, E.M. and London, M., 2018. Employee engagement through effective performance
management: A practical guide for managers. Routledge.
12