Easyjet Case Study

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Easy Jet Case Study
Corporate success of EasyJet
EasyJet focuses on a cost leadership strategy and differentiation strategy. Central to the 'easy' philosophy is yield management. The Easy model provides to the customer functional services at the lowest possible price, on the basis of the "real value" of the basics of the service provided, avoiding any unessential frills. EasyJet was launched in 1995 and was the pioneer in the economical airlines segment. The PESTEL analysis of EasyJet airlines shown in figure 1 suggests that all the external factors were favourable for EasyJet which contributed to its corporate success. Also in the industry lifecycle EasyJet is in the growth phase where it can increase sales, reduce costs and make
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Therefore in my opinion the industry is unattractive as the barriers to entry are high due to high capital investment, high competition, high bargaining power for both suppliers and competitors and risky nature of business. As represented in figure 4, I would place easyCinema as a dog in the BCG matrix since it only has a small market share in a mature industry like cinema industry, it ties up capital that could better be deployed elsewhere and only has little prospect for it to gain higher market share.

Easy group parent company and subsidiaries
Easy Group brands include easy Car, easy Cinema, easy Hotel, easy Internet café, easy Pizza, and easy Value. The company attempted to redeploy its capabilities, such as yield management, that led to the success of easyJet, its low cost airline business, into all of its subsidiaries and new ventures. The group was able to build a strong identity as a ‘low cost’ and ‘convenient’ service provider through its flagship company – EasyJet. However, when the attempted to replicate the same formula in a completely different arena such as the cinema industry, this resulted in a failure. The SWOT analysis in Figure 5 shows that the group has a number of strengths and opportunities which enables business expansion. In my opinion, the subsidiaries can make use of these strengths including its solid brand identity. But the group has to learn from its
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