Strategic Management Report: EasyJet SWOT Analysis and Recommendations

This report presents a strategic management analysis of EasyJet, a UK-based airline. It begins with an executive summary outlining the importance of strategic marketing and the challenges faced by airlines. The main body provides a detailed SWOT analysis, examining EasyJet's strengths (pricing, unit costs, airport network, market share, brand), weaknesses (cost base, brand vs. legacy carriers, seasonality, disputes), opportunities (market growth, cost cutting, business passengers, allocated seating, technological implementation), and threats (airport price increases, labor unrest, increasing complexity, competitor growth). The report also includes core strategic concepts and offers recommendations for EasyJet in the form of a tool-kit to enhance its performance in the competitive airline industry. The analysis emphasizes the importance of adapting to market changes and customer needs to achieve sustainable growth.

STRATEGIC
MANAGEMENT

Executive summary:
Strategic management is the formulation and implementation of the major goals and
initiatives taken by a company's top management on behalf of owners, based on consideration of
resources and an assessment of the internal and external environments in which the organization
competes.Strategic marketing is one of the best approaches that can be used by EasyJet
organisation in order to sustain in market in more relevant form. In addition to it, there are
numbers of issues that are being faced by an airline organisation in order to maintain positioning
of business in an industry. Apart from it, number of opportunities can be seen that can be
achieved by in an organisational context.

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
Critically discuss the strength, weaknesses, opportunities and threats that are important for the
strategic success of EasyJet airline Company.............................................................................1
Core strategic concepts for strategic management: ....................................................................6
Recommendation for EasyJet Company in the form of a tool-kit: ............................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is one of the crucial approaches for an organisation in order to
sustain in the competitive business environment. In case of airline industry, this is a very vital
factor for them. In the report, the company has been chosen is EasyJet, a UK based airline
organisation. In addition to this, the investigation will be discussed about SWOT analysis of
EasyJet Company in respect to identification of internal and external factor of the business.
Beside from it, the report will be recommended on improvement business performance in
industry as well.
Main body
SWOT Analysis important for strategic success of EasyJet Airline Company
Strategic management definition: Strategic management is the formulation and implementation
of the major goals and initiatives taken by a company's top management on behalf of owners,
based on consideration of resources and an assessment of the internal and external environments
in which the organization competes.
EasyJet Airline Company Limited, styled as easyJet, is a British low-cost carrier airline
company. Its headquarters is at London Luton Airport. The company provides airline services in
domestic and international scheduled services, all over 820 routes in more than 30 countries
(Iarmstrong and Taylor, 2014). The company is also listed on the London Stock Exchange.
In today’s Airline’s competitive industry, it is becoming more complex year by year for
an organisation to take effective decision and also to analyse industry in order to stay ahead in
competition. Therefore, SWOT assessment of a company in any industry is a necessary task for
its professional growth. As per information, its manager can make parallel decisions to sustain in
the industry at extreme level. SWOT analysis is a tool for the strategic analysis of an
organisation. It provides essential information about external and internal situations of a
company. It can be said that this is the most necessary analysis for EasyJet organisation to know
about growth and opportunities of business which must be taken in account by its professional at
workplace.
EasyJet’s strength:
Pricing: In this competitive airline industry in UK, the company has the best strength
which is, they are offers impressive price structure in market which gives more and more
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monetary advantages to the firm (Barney and Hesterly, 2010). Company offers 50% lower rate of
avenue services than its competitors which carriers on short haul routes and 20% to 40% below
which is most appropriate. In addition to this, EasyJet organisation has dynamic revenue
management system by which they adjust prices of airline services as per demand in the market;
it assists them to generate high rate of revenue from the market. There is one organisation in
Europe, known as Ryanair which also offers lower rate for airline facilities. .
offers lower rate for airline facilities. .
Unit costs: this is one of the best approaches for an organisation in order to gain
sustainable price advantage in any industry (Best, 2012). Firm's manager implements unit cost
strategy for getting proper advantage. From the organisation's point-to-point strategy allows
them to utilisation of aircraft at high sales and productivity and profitability can be gained. So
this strategy is very helpful for the strategic management of its profits.
Airport network: From the analysis, it has been seen that, company has better airport
network rather than its other competitors in market. Company has right to overtake their aircraft
most of primary airport of European country, so it increased its airport networks and allows
reaching quicker to European population in the nation. So it is necessary for them to earning
enough profit for organisation.
Market share: Multiple numbers of market shares is also one of the major parts for
company in order to gaining sustainable development in industry. It can be examined that, in
Europe as a whole, it is number two by passengers with a share of 9%, just behind Ryanair with
12%. Apart from it, the company generates large numbers of revenue from the market because of
wide range of market share in industry which involves in gaining enough profit and growth for
company. (Brewster, 2017)
Brand: The company has big branded name in industry which allows them to serve
airline services in industry at high level. It has been seen that, EasyJet has raised its brand
perception in recent years. In addition to this, the organisation also have enjoyed good brand
name in UK, which attract its loyal customer most.
EasyJet’s weaknesses:
Cost base not as low as that of Ryanair: As per survey, it had been noticed that the
company offers its services not as low as Ryanair, which is the biggest competitor to the firm.
The company offers services per seat at around 50% higher than Ryanair’s. Therefore, the
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company is facing top level of competition in serving its services on airport to airport and city to
city, so it generated more complex competitiveness towards the company (Ward, 2012).
Brand vs legacy carrier: EasyJet company is probably string than many LCC
competitors, but LCCs as a whole have string brand name which is providing large numbers of
major legacy carriers, as noted above, it has been seen that, there are numbers of issues are being
generating in the market which being cause of less brand effectiveness for the firm. Because of
low customer case, the airline industry is facing extremely competitive with numerous brans
which is serving same customer base in industry. This has led to price wars for the organisation
in the industry to sustain in complex market.
Seasonality of earning: As per analysis of information, it has been found that the airline
industry is based on specific type of seasons, which affects its customer base in a positive way.
In this case, EasyJet organisation is also based on seasongs in UK, where most of the companies
offer attractive airline travelling offers for various occasions.The company is using this strategy
but in off seasonality business has to bear average rate of profit. So it can be said that, the
company has to bear unexpected issues in the market which occurs in off seasons such as,
overburden of employee’s wages, lower rate of market share, average rate of profitability etc
(Casadesus-Masanell and Ricart, 2010). It has been examined that, the organisation can gain
profit most of in the summer.
Stelios: Disputes in recent years between Stelios and management have generated
adverse publicity and arguably damaged the brand, particularly where they drew attention to
factors such as poor on time performance. Several times, it has been examined the faced various
types of disputed situation which make an impact on performance in a negative way.
The organisation do not offer a free food services for longer flights of more than two
hours, which many of its customer finds difficulties.
EasyJet’s opportunities:
Market growth: Although, there are numbers of airline companies running in the UK and
because of it, the competition level of industry is increasing frequently. EasyJet is a significant
market player which has got appropriate positioning in market. Moreover, given its cost and
advantages by cutting down in the costs of various legacy carrier services (Von Krogh, 2012).
The company can utilise the strategy to implement innovation in its various aircraft models and
services which gives its positioning in case of more impressive performance in business.
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Therefore, to keep up with market growth, the firm needs to use strategy to comply with current
competition and also follow the rules of modern changes in company as per needs and
necessities of its customers in the market. It assists them to gain proper growth in the market
Future cost cutting: In terms of maintaining price advantage, EasyJet organisation must
need to make sure that it maintains its unit cost advantage against legacy carrier that are
frequently locking further for cutting down costing of signification part of its entire services. The
various types of financial technique can be followed by the company in respect to cutting cost of
the company which enables it to keep ahead in the competitive market. EasyJet Company has
identified the areas in which they can cut down cost, which is, airport, ground handling, and
engineering and fuel etc (Chesbrough, 2010). All these are major sector in which cost of the
company can be cut down by using various approaches. These activities increase the rate of
profitability for the business in the future.
Business passengers: From last few years, it has been identified that, EasyJet
organisation serve its services for those people who come to UK for business purposes. It can be
said that, over the last five years, success of the company gets increment from business
passengers in a country (Smith, Binns and Tushman, 2010). All the yield advantages can be
gained by the organisation by serving different-different types of services in market.
Allocated seating: EasyJet organisation need to examine that, all seats are proper
allocated in its aircrafts. The organisation professional can utilise these strategies to allocation of
seating for different-different types of customers, as per their demand and expectation from
organisation. This strategy can enhance the customer base and opportunities for business.
Technological implementation: The Company has an opportunity to implement its
various airline services as per modern demands which can satisfy customer needs and
expectations. It can be said that the company has wide range of opportunities to improve its
aircraft performance by theuse of latest technology which has potential to reduce costing of its
maintenance and other related issues
EasyJet’s Threats:
Airport price increases: This is also one of the major threats for the company, it defines
that, airport price could be increased in the future, because of nowadays’ in UK, the traffics of
aircraft's is increasing year by year, so it has always threats to raising rate of airport prices which
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can make negative impact on profitability of the firm (David, 2011). There are many types of
airport cost has to bear to organisation.
Labour unrest: Organisation are vulnerable to labour unrest, it has been seen that, the
organisation has the labour unrest, means, the organisation have threats to conflicts arisen among
its various employees and top management which could me major cause of serious falling of
organisational performance in industry. Labour unrest also make impact on reduction of
productivity of company. The employee’s relationship is one of the major part for airline and
legacy carriers businesses, with the assistance of each other many organisational functions has to
be done within the enterprise.
Increasing complexity: In airline companies, numbers of services are increasing as per
customer’s demand, so EasyJet business has now multiple numbers of departments and business
functions which increases the for firm. Raising could be a threat of the business. Crucial
circumstances incur in the business when top of the company lose their focus on all handling
activities in industry. Beside from it, there are various business functions are functioning in
industry which has different types of roles, so many times, it has been seen that, complexity
occur in these functionalities, which is a big threat for the firm.
Return of competitor capacity growth: EasyJet business is currently benefiting from a
more disciplined and rational approach to capacity growth in its market than has been the case in
the past. In case of its competitors in market, they have potential capacity to offering the lowest
prices of airline services to its existing customers (Davis and Adam Cobb, 2010). So it is being
caused of facing appropriate growth in market, so it can be said that, this is also one of major
threat for the company which can lead to decrease profitability of EasyJet firm in industry.
External events: Air travel is the business which is all about to carrying large number of
passenger from one country to another country. So the enterprise has always big threat to getting
negatively affected to geopolitical events and natural phenomena such as earthquakes and
volcanic ash disruption etc. all these external environment issues can affect the business at large
scale. Earthquakes can destroy all aircrafts of EasyJet Company and volcanic ash could be
caused of airline accident (López-Nicolás and Meroño-Cerdán, 2011). So all these reasons are
prime threats of the firm which is always there in the firm.
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Core strategic concepts for strategic management:
Strategic management is the method by which an organisation needs to develop and
implements plans that espouse the goals and objectives. The approach of strategic management is
to get changes in the business as per its requirement in the firm. EasyJet organisation needs to
make use of some effective core concepts of strategic management by which they can meet their
desired goals and aims in an easy manner.
Goals setting: In the core strategic management process, its business professionals need
to set up desired goals and targets to achieve in given time period. The organisation needs to
formulate effective vision and mission statements. Apart from it, they have to also set up values
and objectives of the organisation which assist them in accomplishing them within given time
period (Farndale, Scullion and Sparrow, 2010). In order to setting up goals for an organisation,
its manager need to those factors where competition is increasing frequently and also global
business areas in airline industry to achieve their goals and aims.
Analysis strategic formation: Analysis of an organisation’s strength and weaknesses is a
key concept of strategic management. Other than the internal analysis of the business, the
organisational manager also need to make sure that, external assessment of factor such as
emerging technologies in aircraft and new competition in market as well. It has been seen that,
the organisational professional require to analyse internal and external factors of the business and
as per its information, they have to analyse strategic formation.
Strategic formation: Strategic formation is one of the concept which entails developing
specific types of action that will enable EasyJet organisation to meet its specific goals. The
organisational professional require to make sure that, they have strategic formation by analysing
those factor which is generating big issues for the business (Leiponen and Helfat, 2010). It has
been seen that, the company need to formation of strategic development within the entity by
which its professionals will be able to reach to desired goals of the business. So with the
assistance of the strategic formation, its manager can reach to maintaining business functions and
competitive advantage within industry in proper way.
Strategic implementation: This is a stage, where EasyJet professionals need to make
efforts in putting the actual strategy into action in order to meet goals and objectives in given
time period. The idea behind this concept is that, it is necessary to gain proper strategic
expectation in actual situation. There is various business functions running in market and its
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professionals need to get them into proper management by using strategic approach (Foss and
Knudsen, eds., 2013). The organisational professionals require in meeting financial management,
human resource and operational goals that must be successfully implemented within the firm in
order to gain proper development in such areas by which sufficient development can be gained in
more relevant form.
Strategic monitoring: A final concept in monitoring of the strategy after its
implementation. Strategy monitoring entails evaluating the strategy to examine that, the business
functions are running within the industry as per its organisational goals and objectives. EasyJet
company’s professionals need to ensure that, its professionals have to maintain some official
services of the business in order to gaining proper development in such areas by which sufficient
development can be gained. It can be said that, the firm also require understanding the areas
where they can adjust the plan to adapt to changing in trends of the business in industry
(Freeman, 2010).
In addition to this, EasyJet Company needs to make enhancement in its
brand image in order to gain effective response from the market. Poor services
quality can reduce the brand value and image in industry, so its professionals need
to make sure that they are furnishing quality in services and also managing brand
equity in market which assist the business in raising customer base and making its
customer brand loyal towards its airline services in industry.
CONCLUSION
From the above analysis, it can be concluded that, strategic management is one of the
best approaches for EasyJet organisation in order to gain competitive advantage from industry in
relevant manner. In addition to this, it also concludes about SWOT analysis of organisation, by
which they can identify the threats and opportunities of the business; it assists the organisational
manager to analyse internal and external factors and as per its analytical information by which
strategic decision can be made by its manager to sustain in market in proper way. Beside from it,
the report also recommended about making appropriate improvement within the business
environment by which business can improve its business performance in industry.
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Recommendation for EasyJet Company in the form of a tool-kit:
Firstly EasyJet Company should make improvement in integrated marketing
communication strategy of the business in industry. There are numbers of issues are being arisen
in company regarding to company can should examine the ways by which sufficient
development can be gained in more relevant form of the services in order to generating large
numbers of issues within the firm. Apart from it, the company can better engage its customers by
implementing improvements in organisational integrated marketing services, by which they can
introduce their new and innovative airlines services to its customers. The company manager
needs to deliver its services to its customer in market in unambiguous manner.
Secondly, EasyJet should enhance the improvement in quality of company website and
add some more effective feature within it, so that they can better engaged with their customer
and its customers also can be informed by website about each changes in business. Innovative
options and website must be updated at regular basis, so that increment in ease of online
transactions can be implemented within the firm (Hill, Jones and Schilling, 2014).
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REFERENCES
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Routledge.
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tactics. Long range planning. 43. 2-3. pp. 195-215.
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planning. 43. 2-3. pp. 354-363.
David, F. R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Davis, G. F. and Adam Cobb, J., 2010. Chapter 2 Resource dependence theory: Past and future.
In Stanford's organization theory renaissance.1970–200. pp. 21-42. Emerald Group
Publishing Limited.
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talent management. Journal of world business. 45. 2. pp. 161-168.
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Routledge.
Freeman, R. E., 2010. Strategic management: A stakeholder approach. Cambridge university
press.
Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Leiponen, A. and Helfat, C. E., 2010. Innovation objectives, knowledge sources, and the
benefits of breadth. Strategic Management Journal. 31. 2. pp. 224-236.
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