Individual Management Report: Strategic Analysis of EasyJet

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This individual management report provides a comprehensive strategic analysis of EasyJet, a British low-cost airline, focusing on its performance and growth strategies. The report begins with a strategic audit utilizing SWOT analysis to evaluate EasyJet's strengths, weaknesses, opportunities, and threats, followed by a PESTLE analysis to assess the macro-economic factors impacting the company. The analysis delves into political, economic, social, technological, legal, and environmental influences. Furthermore, the report employs the Ansoff matrix to explore market penetration, market development, product development, and diversification strategies for EasyJet's growth. It highlights the company's focus on low-cost services, user-friendly technology, and environmental sustainability efforts. The report also touches upon challenges faced by EasyJet, such as the impact of the COVID-19 pandemic and competitive pressures. This strategic overview aims to provide insights into EasyJet's current market position and potential future strategies.
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Table of Contents
TASK...............................................................................................................................................3
Executive summary......................................................................................................................3
Strategic audit..............................................................................................................................3
Analysis........................................................................................................................................4
Critical reflection.........................................................................................................................8
REFERENCES................................................................................................................................9
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TASK
Executive summary
The aim of the study is to investigate the strategic performance of with the help of
strategic audit of organization and then analysed the strategic action which can be taken by
company for growth strategy. Then purposes of the report is to execute the performance of
employee its current position in market related to industry. There are several issues faced by
company during pandemic which is related to company.
The chosen company for report is Easy jet which is public company and British low cost
airline of Easy jet plc. And founded in 2017, after UK Government triggered article 50 to leave
the European Union. Organization headquartered in Luton, England (Timóteo, 2021). During
pandemic there are several issues faced by company. This is the safest airline organization which
offered good quality of services as well as it help to target large number of customer. There are
more than 80 travel agency partners across Europe and bookings continue to grow with around
12 million business passengers (Mrňa and Badánik, 2021). That is why organization have its
success in order to focus on building the strategy of competitive advantages by considering the
unparalleled network and position in the market that is efficient for the low cost model which is
well-known brand and strong balance sheet.
In the report it has been discussed the strategic audit as well as this is related to financial
and business performance over the past 3 years. Then identify the relation of growth in order to
focus on different strategies which is used by company and also there are different types of
strategic action which is taken by company with the help of Swot analysis . Further, analysis the
data on the basis of strategic decision used by Easy jet and then identify with the help of Ansoff
matrix and VRIO analysis.
Strategic audit
Strategic audit is a system which help for identifying the extent of implementing a
company's strategy, purpose and how to reach its goal. This is important for the organization
which help to focus on current state of business with its objectives and goals in orders to laid out
with strategic business plan (Stingel, 2022). All the result given in business owners the facts
which they need for influencing internal structure with better alignment that help for considering
the long term goal. For analysing the strategic audit of Easy Jet with the help of SWOT analysis
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that include strategic approach or planning which evaluate strength and weakness then
opportunities combines with threats in which business establishment encounters.
SWOT ANALYSIS
Strength- Easy jet is one of low budget service provider which is the biggest strength of
the company as well as this is low budget and leading services' provider (Easyjet, 2022.). At
large numbers of destination company provide its services such as Berlin, Barcelona, Prague etc.
Also, Easy jet focus on providing good quality of services at customers friendly prices also that
kind of feature are help to attract large number of customer which help to build the name across
UK air travel industry. Then company use the user-friendly websites which is easy to access by
users as well as it help to develop price breakdown strategy (Zaušková, 2020).
Weakness- With the help of incredible strength company make its position in the market
which help to remain competitive in UK air industry. Also, the are large number of air travel
agency in UK which provide same services. When flight takes more than two hours other
company offering free food services. On the other hand, chosen company not able to offer same
services so that company lack from companies which provide additional services. Due to covid
19 there are 25% of growth decline because it impacts very bad on industry as well as its services
or pricing policy influence on other routes which is operated at less profitable (WALCZAK,
2022).
Opportunities- Easy has the opportunity of opening new routes such as Dublin to UK
which help to target new customers in order to focus on profitability for increasing the clientele
levels due to potential large number of air travellers who are attending soccer matches. This is
help for increasing the customer experience with company which help to increased pool of
passengers.
Threats- One of the external opportunity is related to competitive market forces also it
creates pressure on profit margin of company especially related to popular routes (Barqueira,
Quadros and Abrantes, 2022).
Analysis
Pestle analysis
It has been analysed that there are some factor which are necessary to analyse that impact
on strategic action of Easy jet. This is the essential tool which help to analyse the macro
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economic view of business as well as it is stand for realistic tool which help to analyse the
situation better than stand statistically excellent tool. Factors are as follows:
Political- On the basis of political environment it can be said that company influence due
to operation of Easy jet via taking policies. Also, it has been threes years company has faced
issue related to increasing the environmental regulation that is related to tariffs or employment
law which are established with UK besides or complying with trade restriction policies. Due to
high rate of taxes and tariffs it impacts on the service of organization. In the year 2019, French
president Emmanuel Macron in an attempt to streamline the pension policy throughout the policy
which led other people by understanding many of them and would not be earning as much as
they expect thereby by leading to strikes which affect Easy jet (Mrňa and Badánik, 2021).
Economic- It can be said that there are different types of economic activities influence
the strategy of company such as fluctuating prices which impacted by covid 19 global pandemic.
Company has no exception or unfortunately dues to restricted plan it was impacted badly by 3
years. In 2019, Easy jet lost a huge sum of money back in the first half of 2019 due to extremely
high fuel prices, this is essential element for an aircraft also lost more than 280 million euros
(WALCZAK, 2022).
Social- Aviation industry is very promising and fruitful career for people that help for
developing countries such as UK. However, this field is male dominant field in which female are
not as much safe for working in aviation industry. Their recent efforts are including hosting
online lectures for student in UK so that they can motivate female pilots that leading cause or
realistic portrayal what they expect in Aviation industry. Easy jet spent a lot of resources on
spending prompt messages and update to potential customers when lock-down restricted in ease
of 2020 that help for increasing positive response and positive sales figures.
Technology- In the year 2019 Easy jet launched mobile application which help to
develop new marketing strategy for impaired with people to book flight easily. Also, in this
application customer can speak for booking which help to work fast as compared to book flight
by website (Stingel, 2022). Due to this technology advancement company get award for user
friend application and website. This technology advancement is beneficial for company which
help to work in better way for engineers that help to solve complex issue. This is help to gets
technological advancement.
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Legal- Company has faced the legal loophole or scandal related to legal complications.
In the year 2020, Easy jet become notorious for huge cyber attack. That impacted company
badly related to more than 9 million people in their database. Also, 2000 of people has their
credit card numbers which comprised along with intimate details such as contact information
which is addresses by departure and landing times.
Environmental- This is the first company which use the strategy of first aircraft
company that actually work on makings paperless planes by using Panasonic tough-pads
installed that served by replacing laptops and printers for the communication. Easy jet
implementing the strategy of e-paper technology which is created by Sony in order to reduce the
paper consumption to zero (Zaušková, 2020). This strategy help company to attract large number
of customer as well as it help to be fully committed in order to reduce carbon emissions down
by 50% by using new sustainability policy of EU and UK.
From the above pestle analysis it has been analysed that Easy jet get the local popularity
in the field of luxurious airline as well as budget airline. Due to bribery scandal company has
faced the problem related to disputes between top management. Then environment policy of the
company is related to make efforts in order to makes good brand image that help to achieving
sustainable benefits in order to reduce their carbon footprint (Dimitrelou, Oikonomidis and
Fouskas, 2020). Then has the competitive advantages which is related to technology
advancement as well as it help to work on the basis of user-friendly website which help to attract
large number of customer by providing them digitalization benefit so that they can easy to book
their flight.
Ansoff matrix
Easy jet operates both domestically and internationally by more than 1000 routes of
nation also this is inception by acquiring various smaller companies in order to expand the
routes, company size, fleet size etc. Also, mores than 15000 employees are working for Easy jet
also generated the revenue of 6 billion to rise and then increases the subsidiaries.
There are various global operations and business which is based on strategic growth
decision and choices. Then it is also possible that there are different growth paths which can be
different from region or situation on the basis of internal and external analysis on the basis of
organizational factors (Olaganathan, 2021). For the chosen company Ansoff matrix help to
analyse the strategy used it as well as it is help by successfully generating giants internationally.
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Some strategies that can be used for growth of Easy jet under different category of Ansoff
matrix such as follows:
Market penetration-
This is the strategy of selling the existing product in existing markets in order to focus on
improve the loyalty of customers also it offers save even by becoming loyal members. There are
large number of customer are having low cost paying services which help to attract business
class flyers in order to use low cost services. As well as organization work for improving the
services which help for reducing the time to process customer check-ins and then it helps for
creating access to available services (Chang, Lee and Wu, 2019). Also, organization acquires
which is smaller airlines to increase markets share in region which has strategic alliance with
hotels and resorts that help for promote tourism activities.
Market development-
This strategy is refers to selling existing product in new market which help for expanding
services as well as expand on the basis of geographical markets. This is also help to target new
customer which is related to operating services in countries where does not currently fly to.
Also, this strategy help for new destination within countries by offering new packages as well as
it help top attract new customers by providing new services such as new facilities, increasing
luggage capacities in order to create new market segments within existing markets (Okumus,
Altinay and Köseoglu, 2019 ).
Product development-
In this strategy new product launched in existing market which help action to taken as
product development as well as company can use the strategy by increasing product line in order
to focus on improve existing product line in context to provides better facilities at existing rates.
In this is process there are including better meals, providing more leg space also by offering low
cost business class and executive class so that it help to attract large number of customer. It can
bes said that this strategy is related to work on certain routes which help comfort level to
becomes the leader of aircraft by performing different options.
Diversification-
This strategy stand out by above three strategies which help to pursued with same
technical, economical and financial resources which help for original product line where
diversification usually requires by new skill and resources just like Easy Jet did.
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It has been justified that Easy jet should focus on product development strategy which
help by new product in existing market which help for target by providing the services as well as
it help to provide additional services to customer by attract them. This is also necessary to add in
existing services such as free food delivery when flight take more than two hours
(Zhavoronkova, Zhavoronkov, and Volvach, 2018). Also, allow customer to take 2 kg extra
luggage facility which help to attract large numbers of customer from another countrys also then
it is necessary to provide frequent offers to new customers which help to attract other by refer
their friends and family. It is to be suggested that Easy jet should focus on by working efficiently
in order to focus on improving their services. This is one of the important part of expanding
business and increasing growth of organization.
Critical reflection
In context to case study it has been understanding that Easy jet is falling down from past
three years dues to managing strategic management issues. Also, it has been analysed from the
study Easy jet not able to perform well because it has faced issue related to global pandemic
issue which is very common from 3 years. I came to know that there are decreasing in sales by
40% because at that time people are not allowed to go outside.
I have improved my research skill by following different aspect of case study as well as
it help to search for extract, locate, organize and evaluate the content accordingly. Then I have
written report by supports of authentic website which helped to enhance my knowledge
regarding important sources. Also, I have increase my knowledge in orders focusing on using
different frame work such as with the help of SWOT analysis I have identified the strength and
opportunity in order to overcome weakness and threat regarding chosen company.
On the other hand, it has been taken long hours while I have evaluated PESTLE analysis
because this quite lengthy framework which has different aspect including six factors. Also, it
helped me to analyse the operating activities of business and how it is affected by other factors.
Further, I have applied the Ansoff matrix which help to identify the different strategies
which can be used by company in which I have suggest to uses product development strategy
from Ansoff matrix that helped for working effectively. In this strategy company can target to
new customer by offering them new product or services. On the basis of deep research I have
used by critical thinking method to write the report effectively (Ponomarev, 2020).
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It has been critically analysed that there are huge sources available on internet in which it
was typical to select authentic research for study. Also, it takes time to make this report as well
as I have improved my decision-making skill and problem-solving skill which help me in exam
by focusing on better work. I was poor at listening skill when tutor has taught about the research
and that is why it was impacted by taking long time in order search for authentic research.
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REFERENCES
Books and journals
Barqueira, A., Quadros, R. and Abrantes, J., 2022. Airline booking applications: the case of
Ryanair, Easyjet and tap air Portugal. Aeron Aero Open Access J, 6(1), pp.7-15.
Chang, Y.C., Lee, W.H. and Wu, C.H., 2019. Potential opportunities for Asian airports to
develop self-connecting passenger markets. Journal of Air Transport Management, 77,
pp.7-16.
Dimitrelou, S., Oikonomidis, T. and Fouskas, K., THE EFFECTS OF COVID-19 IN THE
EUROPEAN AIRLINE INDUSTRY. RESULTS FROM PEST ANALYSIS.
Mrňa, D. and Badánik, B., 2021, November. Differences in low-cost airline operating models in
2018, 2019 and 2020–comparison of easyJet, Ryanair and Wizz Air. In 2021 New Trends
in Aviation Development (NTAD) (pp. 128-133). IEEE.
Okumus, F., Altinay, L. and Köseoglu, M.A., 2019. Corporate-level strategies. In Strategic
management for hospitality and tourism (pp. 135-151). Routledge.
Olaganathan, R., 2021. Impact of COVID-19 on airline industry and strategic plan for its
recovery with special reference to data analytics technology. Global Journal of
Engineering and Technology Advances, 7(1), p.33.
Ponomarev, D., 2020. Consolidation of airlines in Europe: potential acquisition of Norwegian by
EasyJet (Doctoral dissertation).
Stingel, H., 2022. European airline consolidation-acquisition strategy for a potential takeover of
JET2 by Easyjet (Doctoral dissertation).
Timóteo, R.F.D.S., 2021. Equity research-EasyJet Airline Company LTD (Doctoral dissertation,
Instituto Superior de Economia e Gestão).
WALCZAK, W., 2022. MARKETING INSTRUMENT OF COMPETITION IN LOW-COST
AIRLINES. Ekonomia i międzynarodowe stosunki gospodarcze 2021 [DEBIUTY
STUDENCKIE], p.40.
Zaušková, M.V.M.K.A., 2020 THE AIRLINES COMMUNICATING THROUGH SOLOMO
PLATFORMS DURING THE COVID-19 PANDEMIC.
Zhavoronkova, G.V., Zhavoronkov, V.O. and Volvach, N.N., 2018. Development of the market
of aviation transportation in Ukraine: problems and prospects. Trans Motauto
World, 3(3), pp.116-120.
Online references
Easyjet, 2022. [Online]. Available through <https://www.zoominfo.com/c/easyjet-airline-
company-limited/12256221>.
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