Strategic Analysis of EasyJet Airlines: A Comprehensive Report

This report offers a comprehensive strategic analysis of EasyJet Airlines, a prominent low-cost carrier in the European market. It begins with an introduction outlining the company's background and its unique business strategy, emphasizing its cost-leadership approach. The main body of the report delves into EasyJet's strategic position, examining its internal and external environments. This includes an in-depth internal analysis of its primary and supportive activities, product differentiation, and human resource management practices. Furthermore, the report employs a PESTEL analysis to assess the political, economic, social, technological, ecological, and legal factors impacting the airline. Finally, the report offers recommendations for improvement and a conclusion summarizing the key findings, supported by relevant references.

Running Head: Strategic Management 1
Strategic Analysis of EasyJet Airlines

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Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Background of Easy Jet................................................................................................................3
Strategic position of Easy Jet.......................................................................................................3
Internal analysis...........................................................................................................................4
Primary activities......................................................................................................................4
Supportive activities.................................................................................................................5
Product differentiation.................................................................................................................5
Human resource management......................................................................................................6
PESTEL analysis..........................................................................................................................6
Recommendations and conclusion..................................................................................................8
References........................................................................................................................................9

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Introduction
This report discusses an analytical research of EasyJet in order to understand the strategic
position of the company in the airline industry. Airline EasyJet is famous among the travelers for
its low cost services. In the past few years, the airlines have done many major changes in its
management style. The airline has unique business strategy which is the reason of success in the
airline industry(Pate & Beaumont, 2006). The objective of this report is to analyze the strategy
and tactics used by the airline in order to stay competitive in the industry.The report focuses on
the strategic analysis including PSTEL analysis, product differentiation and human resource
management
Background of Easy Jet
EasyJet is a public listed company under the oligopolistic structure and operates across
the European continent. The Airline has started has started its business operations in 1995 and
now it is considered as the low-cost European airline in the industry (EasyJet Plc, 2018). As the
‘low-cost’ company, EasyJet is different from traditional airlines by having very low fares. The
company is now providing the services of domestic and international carriers to the passengers at
very low cost. Airline is seeking to keep the costs low by minimizing the unnecessary frills and
costs. There is the need to reduce the costs as the strategy in order to reach many customers
EasyJet is focusing on maintaining its effective strategic position in the airline industry (Johnson,
2010).
Strategic position of Easy Jet
EasyJet is the leading airline company in UKthat is providing low cost airline services to
the travelers. The organization is known as the ‘No-frills’ airline in which the airlines provides
the services at very low fares and eliminates all the unnecessary services (Wright & Quinn,
2014).
Pricing- The generic strategy of EasyJet is the cost leadership strategy. The philosophy of the
organization is to provide the low-cost services based on the market size in order to get profit.
Based on such strategy, EasyJet is able to maintain cost advantage over the established airlines.

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By the low-cost strategy, EasyJet is trying to maintain the perceived benefits from the product
and services as compared to its competitors (Peñaloza et al, 2013). Organization focuses on two
basic factors i.e. customers and prices in order to achieve the competitive advantage in the
market. So, EasyJet has strong competitive and strategic position in the airline industry over its
competitors.
Marketing- For the effective marketing process, EasyJet is using effective tactics and slogans
i.e. ‘come fly with us’. Along with this, organization is also providing electronic tickets to the
passengers so that they do not need to print the ticket in physical form. Organization has
introduced mobile application also in order to enhance the revenue and sales (Braun & Latham,
2014).
HR- HR department is the most important part of the organization. EasyJet is focused on the
welfare and development of its employees basically, organization hires young people. Now,
there are more than 100 people employed in the business operations.
Internal analysis
EasyJet Airlines is a low cost airline that offers affordable services to the travelers at the
low prices. The business operations of the airline include various activities in order to provide
values to the customers. Airline is achieving competitive advantage as compared to other airlines
in the industry and minimizing the risk of substitute. The activities of EasyJet are described
below:
Primary activities
The key objective of any organization is to achieve the operational efficiency and in order
to achieve this, primary activities of EasyJet is the major concern. The primary business
activities of the airline are as follows:
Inbound logistics-
EasyJet is operating its business in more than 30 countries including over 600 routes.
Organization is providing services to more than 65 million people (EasyJet plc, 2017). The
organization has strong position in the industry by offering low cost services as compared to
other airline companies. Along with this, the organization is involved in various environmental

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friendly activities by being fuel efficient. Organization has used Nano-technology paintings in
order to reduce the weight of aircrafts (Lamb, Hair & McDaniel, 2010).
Operations-
There are various operations of EasyJet including ticket counter operations, aircraft
operator, ticket officer etc. EasyJet is operating around 500 flights each day along with 4500
crew to assist the customers. The E-tickets can be downloaded from the website of EasyJet. The
operations of EasyJet are famous for its punctuality and services (Ritson, 2011).
Outbound logistics-
EasyJet is providing the rental car services that are helpful the travelers to reach from
airport to their proper destinations. Along with this, it also provides facilities in booking hotels,
apartments and resorts. Based on the customers’ requirements, organization offers various prices
to them. Further, it also provides effective baggage system (Griffin, 2008).
Supportive activities
There are various supportive activities of EasyJet in order to achieve the competitive
advantage in the operating market. Supportive activities of the company are described below:
Infrastructure-
EasyJet has adopted low cost model and that is the reason organization has strong brand
awareness in the operating market. So, company has spent lots of money in order to sustain the
infrastructure and customer base in the market.
Technology-
EasyJet is using modern technology and IT model that is helpful for the organization is
delivering quality services. Along with this, EasyJet is using online services and effective
marketing channels to target the customers. Organization is focusing on the feedbacks and
responses of the consumers after providing services (Dess& Lumpkin, 2009).
Procurement-

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In the procurement process, EasyJet is using proper inventory management process,
warehousing, maintenance and e-procurement.
Product differentiation
According to Porter’s theory, two basic type of competitive advantage i.e. lower cost and
differentiation. EasyJet has achieved competitive advantage by adopting cost leadership
approach and providing low-cost advantage to the customers in the form of low cost. EasyJet has
done many attempts in order to make the product stand in-front of low cost airline competitors.
The factor of product differentiation acts as the competitive advantage in the business. It is
observed that EasyJet is ‘trend setter’ for the product differentiation in the market (Hospodka &
Fedorco, 2013).
Further, EasyJet has recently relaxed hand luggage restrictions which are40% bigger than
present allowance. No weight restriction of EasyJet for flexible ticket and cabin baggage scheme
is helpful in creating innovation for the customers. This is the attractive prospect for the business
class travelers and differentiates EasyJetfrom the other low cost airlines. Along with this, in order
to minimize disruption, EasyJet has implemented 100% self-check in the plans. EasyJethas also
differentiated itself from the pricing methods i.e. inclusive pricing that excludes taxes and
booking charges. The organization has come with the low fare strategy in order to attract a large
customer base (Fifield, 2012).
Human resource management
Human resource management has crucial role in managing various activities within the
organization. It is observed that there are various functions performed by the department of HR
in EasyJet. There are three key functions carried out by the human resource management i.e.
managerial function, operative function and advisory function. Further, motivation, development,
compensation, industrial relations and employment are some crucial components of human
resource functions. In EasyJet, managerial functions includes organizing, planning, directing,
and coordinating of human resources and advisory functions of HRM includes advices to various
departments and higher management of the organization. For EasyJet, it is observed that human
resource carries out all these functions in various departments and achieves the organizational
objectives in the efficient manner (Ghuman, 2010).

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PESTEL analysis
Political-
Being a low-cost airline, safety rules and regulations are imposed on the airline. So,
EasyJet has to meet various international conventions European national, protocols and
agreements. Air transports are basically governed by the international conventions. There are
various factors in the country that impact on the business operations of EasyJet i.e.
environmental law, taxing policies and foreign trade regulations (Mason and Alamdari, 2007).
Economic-
There are some factors that impact on the growth and development of any company.
Those factors include GDP of nation, economic growth of the country, inflation rate, purchasing
power of people, rise in the oil prices and unemployment in the country. all these factors are
helpful in getting new opportunities for Airline as well as managing the business at the global
business the country. That is the reason EasyJet has various opportunity in order to grow and
develop the business in the market.
Social-
This factor basically includes population, age distribution, and income distribution of the
population in the country. The cultural aspect includes the changes in the culture and changes
and life changes. These factors have strong impact on the business operations in various
countries. EasyJet focuses on the socio-cultural factors of the country that motivates the travelers
to choose EasyJet for their traveling (Marcer, 2012).
Technological-
In the airline industry of low-cost airline, technological development is not a priority.
EasyJet has low-cost business model that is helpful in minimizing the cost in the business and
making the services effective for the customers (McDonald, 2015). UK provides opportunity in
order to create new technologies with the research and development institutions. So, EasyJet is
creating new technologies to grow the business (Schilling, 2010).
Ecological-

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EasyJet has to follow the rules and regulations related to environmental protections in the
operating country. In order to deal with the environmental factors Airlined has introduced a
program named Carbon offsetting. EasyJet does not provide any kind of food during the flights
but travelers have option to buy the food in the flight during their journey. Customers get healthy
food and company use recycling method in order to use the material again i.e. plastic glasses,
folks and knifes etc.
Legal-
This factor includes various laws and regulations imposed by the government of the
country. Those laws include international laws, employment laws etc. Government of the
country set laws and standards that impact on the business of airlines. There are international
laws international trade, air space, agreements and international trades that impact on the
business of Airline companies.
Recommendations and conclusion
It is observed from the above analysis that EasyJet is doing well in its business operations
in UK. Company has effective strategic position in the industry but still, there is the scope of
improvement. So, it is recommended that company should focus on the effective promotional
activities and to make its presence among the customers by using social media platforms. Along
with this, company should also use of available resources in order to develop the infrastructure
and various supporting activities like technology and human resources. It is also recommended
that EasyJet should cooperate with other businesses like cab business which can be helpful for
the travelers to reach airport from the destination transport. Along with this, EasyJet can
maintain better relationships with the transatlantic operation in order to create more routes. By
adopting these recommendations, EasyJet will be able to maintain its strong position in the
market.

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References
Braun, M. & Latham, S. (2014) Mastering Strategy. Santa Barbara: ABC-CLIO.
Dess, G. & Lumpkin, G. (2009) Strategic Management: Creating Competitive Advantages. (6th).
London: McGraw-Hill Education.
EasyJet plc, (2017) PURPOSEFUL AND DISCIPLINED GROWTH. Available at
http://www.zonebourse.com/EASYJET-34541461/pdf/804564/easyJet_Rapport-annuel.pdf
(Accessed: 27/1/2018)
EasyJet Plc, (2018) Our journey. Available at http://corporate.easyjet.com/about/our-journey
(Accessed: 27/1/2018)
Fifield, P., (2012) Marketing strategy. (2nd). Berlin: Reed educational & publishing Pvt Ltd
Ghuman, K., (2010) Management: Concepts, Practice & Cases. USA: Tata McGraw-Hill
Education
Griffin, R.W. (2008) Fundamentals of Management. USA: Houghton Mifflin Company. 67
Hospodka, J. &Fedorco, L., (2013) AIRLINE PRICING STRATEGIES IN EUROPEAN AIRLINE
MARKET. 8(2)
Johnson, B., (2010) EasyJet unveils strategy and strong results. Available at
https://www.marketingweek.com/2010/11/16/easyjet-unveils-strategy-and-strong-results/
(Accessed: 27/1/2018)
Lamb, C.W., Hair, J.F. & McDaniel, C.D., (2010) Essentials of Marketing. Cengage Learning.

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Marcer, D., (2012) Marketing strategy: the challenge of the external environment. (5th). London:
Sage Publications.
Mason, K., J., and Alamdari, F., (2007) EU network carriers, low cost carriers and consumer
behavior: A Delphi study of future trends: Journal of Air Transport Management. 13. pp. 299-
310
McDonald, C., (2015) How easyJet uses digital to drive competitive advantage, Available at
http://www.computerweekly.com/news/4500255119/How-Easyjet-uses-digital-to-drive-
competitive-advantage (Accessed: 27/1/2018)
Pate, J. & Beaumont, P. (2006) The European low-cost airline industry: the interplay of business
strategy and human resources: European Management Journal. 24(5).322-329
Peñaloza, L., Toulouse, N., & Visconti, L. M., (2013) Marketing management: A cultural
perspective. USA: Routledge
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(Accessed: 27/1/2018)
Schilling, M. A., (2010) Strategic Management of Technological Innovation. New York:
McGraw-Hill Irwin
Wright, B., & Quinn, J., (2014) EasyJet maintains low-cost model despite business and frequent
flier focus, Available at http://www.telegraph.co.uk/finance/newsbysector/transport/11237378/
easyJet-maintains-low-cost-model-despite-business-and-frequent-flier-focus.html (Accessed:
27/1/2018)

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