EASY JET STRATEGY

Competitive strategy analysis of Easy Jet

Table of Contents

Introduction3

Background3

Analysis of Easy Jet's External Environment5

Competitive Forces Model6

SWOT8

PEST Analysis Overview9

Easy Jet business strengths11

Value Chain Analysis12

Clock Strategy14

Differential characteristics of service provided15

Conclusion15

References17

Competitive strategy analysis of Easy Jet

Introduction

Easy Jet is an airline carrier company providing scheduled services, in-flight and related services. Easy Jet was founded in 1995 by Stelios Haji-Ioannou to offer low cost scheduled airline services within Europe. The principal activity of the company and its subsidiary companies is the provision of airline services within Europe. The company operates on over 540 routes and has over 196 aircraft and operates across 30 countries. It is headquartered in Luton, the UK and employs around 7,359 people. The company recorded revenues of £2,973.1 million (approximately $4,635.5 million) in the fiscal year ended September 2010, an increase of 11.5% over 2009 (Lamb, 2009).

Background

The company expanded its operations by operating flights between London Luton, Aberdeen, Amsterdam, Nice and Barcelona in 1996. The company's first wholly owned aircraft delivered in the same year. In 1997, the company started its services between Liverpool John Lennon and Amsterdam. In the same year, the company launched easyJet.com to provide information on the airline. The company acquired 40% stake in the Swiss based charter airline TEA Basel AG and later re branded as easy jet Switzerland in 1998. Easy Jet was listed on the London Stock Exchange in 2000. The company purchased Stansted-based low-cost airline 'Go' in 2002. In the same year, the company appointed Airbus as its preferred aircraft supplier. As part of the deal, easy Jet placed a firm order for 120 Airbus A319 aircraft for delivery from September 2003 over five years, with a further 120 Airbus A319 aircraft scheduled to be ordered by 2012.

The company opened an operating base in Berlin and entered into the German market in 2003. Easy Jet further expanded in Germany as easy jet made Dortmund International Airport its next European base in 2004. The company launched alternative routes from London Gatwick to the Republic of Ireland and new routes to Bremen, Bournemouth and Stansted in 2006. In the same year, the company entered into ski partnership with Iglu. Easy Jet added four alternative direct European routes from Glasgow in 2006. In the same year, the company launched alternative routes from London Luton to Bordeaux, Rimini and Rijeka, Liverpool John Lennon Airport to Faro, from Bristol to Paris and from Edinburgh to Munich. The company launched extra base at Madrid's Barajas airport in the same year. The company entered into distribution deals with Amadeus and Galileo, part of Travelport GDS in 2007. In the following year, the company's subsidiary, easy jet Airline Company completed the acquisition of GB Airways (Lynch, 2009).

Easy Jet entered into a partnership with HostelWorld.com, a provider of online reservations, in 2009, pursuant to which, the new partnership will provide hostels, B&B and guesthouse accommodation for easy Jet's 45 million passengers. The company launched its first ever route to Sweden from the UK in June ...