Strategic Management Report: Analyzing EasyJet's Strategy

This report provides a comprehensive strategic analysis of EasyJet, a UK-based airline company. It begins with an introduction to strategic management and an overview of EasyJet's background, including its business model as a low-cost carrier. The report then delves into external analysis using the PESTLE framework, examining political, economic, social, technological, environmental, and legal factors impacting EasyJet. It proceeds to analyze EasyJet's key competitors, identifying their strategies and market positions. An internal analysis, utilizing SWOT analysis, assesses EasyJet's strengths, weaknesses, opportunities, and threats. The report further explores EasyJet's strategic directions and the rationale behind its choices, followed by a discussion of strategy selection and justification, considering market penetration, demographic segmentation, backward integration, and joint ventures. Finally, the report offers recommendations based on the analysis, aiming to enhance EasyJet's market position and future growth prospects.

STRATEGIC MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
1 Background easy jet information.........................................................................................3
2. External analysis.................................................................................................................3
3. Competitors analysis..........................................................................................................4
4. Internal Analysis.................................................................................................................5
5. Strategic directions.............................................................................................................6
6. Strategy selection and justification.....................................................................................6
7. Recommendation ...............................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................7

INTRODUCTION
Strategic management refers to the management that is made by the company for
formulation and implementation of the major goals that is set for the growth and expansion of the
company. This is an initiative taken by the top management on behalf of the owners based on the
analysis of internal and external environment. This provides overall direction to the company by
clearly specifying the objectives. Top management develop polices and plans to achieve the
goals and objectives with the help of the strategic management. This gives the specified measures
for each and every thing that is done for the achievement of goals.
TASK
1 Background easy jet information
Easy jet is a airline service of the UK that started with the small course. They have started
their business in the 1995 and from 1996 they have shown the tremendous growth in the market.
It operates its business under low cost carrier model that is based on the London Luton Airport.
It target the people of both the type weather they want the domestic and international schedule.
Easy jet has seen expansion since its establishment in 1995 as their main consideration is there
customers and their basic priority is also the customers demand (Wheelen and Hunger,., 2011) .
Customers demand were their priority and they continue still the same as they provide the best of
their services in the lowest price available in the market.
They associate with many others so that they can expand and retain in the market for
longer period by satisfying the customers to the core and earning mare profit that competitors. In
April 1996, the firstly owned company is delivered to the aircraft, enabling its first route , to
Amsterdam. Until October 1997, the aircraft is operated by the GB Airways. Since the day one
of its start up it is serving and try to serve the best to the customers but it is still not getting the
certificate of an operator (Moutinho., 2011) . Easy jet was floating in the market for not having
the stability in London Stink Exchange but after 2005 its share value gets increased and now it is
able to takeover the mount UK carrier.
2. External analysis
External analysis is all about the PESTLE that refers to the framework or the tool that is
used by the marketers to analyse all the macro factor and monitor their impact on the company s
that they can take the corrective measures accordingly.

 Political factors : This factors refers to the degree of the government intervenes in the
economy so with the help of this the company can easily analyse political stability in the
market as this decides the growth of the company in the market. Easy jet prefer this factor
as this facor will help them in taking the correct decisions about their plans that should
follow the laws if te want to retain in the market. Economic factor : This factor refers to the impact of them on the company as they include
all the essential factors like the demand and supply (Hill, Jones and Schilling., 2014) .
This factors helps in analysing that what a customer is demanding and what are they
supplying. Easy jet serve the best of them to their customers as they know what the
customers want in the market. Social factor : They refer to the socio culture factors that involves population growth, age
distribution etc. as this factor will help the company to make the product accordingly as
they are the one who affects the business in and out. Easy jet is a airline company and
with the help of this factor they can make the growth plans accordingly. Technological factors : This refers to the techniques that are used by the companies to
analyse the impact of the current techniques and if there is any need to change in order to
achieve the goals and objective on time. Easy jet adopts new techniques to prove that they
are efficient than others in the market so that they can retain more customers than others.
 Environmental factors : This factor includes all the increasing scarcity that may affect the
business in all the way possible. As an more and more customers are demanding the
products but the supply is limited as because of the scarcity of resources. Easy jet tries to
use all its resources but it is an airline industry that's why it is very hard to hold
resources.
 Legal factors : It refers to the health and safety, equal opportunities and many more that
is considered by the company to show its efficiency in the market (Hill and Jones., 2013)
. It sets the rules and regulations that is followed by the whole company. Easy jet is an
airline service that secure all employees in all the way possible and set the rules and
regulations that is strictly followed by al to ensure efficiency in all.
3. Competitors analysis
Competitors analysis refers to the analysis that is done by the company to analyse all the
factors of the competitors that my affect the business in and out. This analysis helps the

companies to get to know about the competitors plans and policies for their growth and expansion
in the market so that they can take the corrective measures accordingly. This is a very critical part
of the marketing plan which determines the strength and weakness of the company relative to the
products and the services.
In 1997, The managers of the easy jet identifies their closest competitions i.e. Debon air,
Ryan air and Virgin express. Although all of these airlines offered low rates and short notice
flights by pursuing their own variations on the low cost them according to the needs in the market
(Hesterly and Barney., 2010) . These four competitors generally avoided head-to-head
competition with each other on routes, and most destinations were served by only one low-cost
airline that is easy jet as it has strong base among all with very sufficient resources that is must
retain in the market by earning more profit than others.
Competitor analysis is done by the easy jet to run the business in a very systematic
manner so that they can make a perfect corporate strategy after analysing all the factors of an
environment as this Wil help them in achieving the efficiency in terms of every thing. By this
analysis they can take corrective measure to achieve more success than others.
4. Internal Analysis
Internal analysis refers to the SWOT analysis that is done by the companies to analyse
these factors so tat they can make the plan of growth and expansion for achieving the goals and
objectives on time. Strategic capabilities refers to the ability that is had by the business to
successfully implement the competitive strategies so that they can retain in the market for a
longer period by earning more profit than others. This analysis is basically done to ensure the
survival of the firm in the market and increment in the value by the time. Strength : Strengths are the strong points that shows that what are you best in and what
capabilities do you carry. Strategic capabilities defines the strength as it is the ability to
perform in any condition for ensuring the survival of the firm in the market (Freeman.,
2010) . Easy jet is an airline service industry that has the capabilities to analyse the
competitors' strategy in the market so that they can make their strategy according to that
by ensuring growth in the market. Weakness : Weakness refers to the points that shows you need to work on them to achieve
efficiency. It is a reality check which shows the inefficiency in all the way possible. Easy
jet is a airline service and mostly depends on the resources and an environment that

affects the business thoroughly. These factors are the weakness which needs and this can
only be possible when they take the corrective measure accordingly so that they can
ensure the survival in the market ant the increment in the value of its share over the time. Opportunities : These are the chances held by the campaniles to grow and expand in the
market ensuring an efficiency in each and every task. These are the elements in the
environment that could exploits to its advantages (Eden and Ackermann., 2013) . Easy jet
airlines have opportunities as it is serving the best in the lowest price available to both
domestic and international customers so that they can be on top by defeating others as
they have analysed all the strategies made by their competitors and that's why they have
made their strategy to ensure their survival and increase in the value over the time.
 Threats : Threats refers to the fear that is held by the company in order to lose its position
to others in the market. These are the elements that could cause the trouble for the
business or project. Easy jet airlines have many threats in terms of competitors as if there
is any one mistake then they can lose their position in the market.
5. Strategic directions
Strategic direction is the direction provided by the top management as it refers to the course of
action that leads to the achievement of goals for the organisational strategy. It shows what is
to be done and in what manner so that they can achieve the goals by implementing their
strategies in order to maintain the position in the market by earning more profit than
others.
Easy jet is a airlines company and this is the reason that they have definite strategic
direction as their goals are very big and for achievement of this there are lots of factors that has to
be analyse to achieve efficiency. They made their choices according to the needs and requirement
as this will decide their future position in the market. By considering and analysing al the factors
they can make their future strategy mare perfect and efficient in order to achieve the goals and
objectives. Easy jet choose low rates to retain more customers and provide fast services so that
they can satisfy them as these will help them in the future.
6. Strategy selection and justification
Strategies are made or selected by the company according to the situation. Strategies are
selected to gain the market penetration as this includes market share, resources and skill force so
the company can achieve efficiency the current strategy to move forward. Current market is

saturated as it is creating more opportunities to enter new segment (David,., 2011) . Demographic
segmentation this factor on the competitive advantage as there is more in return by taking high
risk. Backward integration refers to the skills that are forced for the development of the new and
the existing products. Joint venture it reduces the risk factor as it provides more resources in less
cost and Wil help in earn more profit in short period. Easy jet can select the above strategies as
his strategies clearly gives the justification that the selection of these may help the business in its
growth and expansion so that it can retain in the market for longer period by earning more profit
and defeating others. The above mention strategies clearly justifies that the selection of these will
reduce the future risk by generating more strategic options and helps in eliminating the
competition leading toward the development in the market.
7. Recommendation
In the above content there are number of strategies that are highly recommended as they
help the company in the acquisition of motels, excursionists, cost reduction, distribution of risk
and expansion of business other than the western world (Barne., 2014) . The importance of all
strategies are different as their needs are different according to situation. Easy jet can go for any
suitable strategy that is mentioned above as they are required in the situations occur in the
market.
CONCLUSION
This report is all about the strategic management as this is the most important that is
carried by the companies in order to ensure the survival of the firm in the market and increase in
the value by the time. The internal and external analysis contains all the factors that helps the
company in its growth and expansion.

REFERENCE
Books and Journals
Barney, J.B., 2014. Gaining and sustaining competitive advantage. Pearson Higher Ed.
David, F.R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management. Sage.
Freeman, R.E., 2010. Strategic management: A stakeholder approach. Cambridge university
press.
Hesterly, W. and Barney, J., 2010. Strategic management and competitive advantage. Pearson,
ed., Pearson Prentice-Hall.
Hill, C.W. and Jones, G.R., 2013 Strategic management theory. South-Western/Cengage
Learning.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Swayne, L.E., Duncan, W.J. and Ginter, P.M., 2012. Strategic management of health care
organizations. John Wiley & Sons.
Wheelen, T.L. and Hunger, J.D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Online
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