Easy Jet: The Web’s Favorite Airline Bus 109 Case Study

1555 words - 7 pages

EasyJet: The Web’s Favorite Airline
In the competitive industry of low-cost airline service in Europe, easyJet is among one of the few who survives while still experiencing the success that it received. Starting his strategic market in the airline industry with EasyJet, Stelios, the CEO founder, eventually ventured himself toward other businesses with easyEverything. As an incoming new airline company, easyJet was able to give customers the competitive advantage it needed to stand out among his competitors. The success of the company can be thanked with Stelios’ slick strategic market such as its cost cutting measure, brand marketing awareness, and the given of great service and safety despite it all. The combination of his out of the box thinking manage to land the company into a profitability even during its early career.
As is expected from a newborn business company, easyJet faced many challenges and tight competition that they have to overcome. In the competitive industry of UK’s deregulation of Europe’s airline industry, easyJet not only has to compete with other low-cost airline carriers, it also had to compete with the high-speed rail service as an alternative that people can use to travel around. In addition, the cost of running airplanes turned out to be around 40% higher than those in the US. Moreover, Stelios also faced the decision dilemma of whether he should turn the company as a private or public entity in the consideration of his entrepreneurial mindset. In return, this also comes with the problems of subcontractors and inexperience employees, in which hiring and training is one important aspect that should be considered. Overall, easyJet faced problems where it needed to stabilize itself internally.
Even with all the challenges, easyJet was able to climb their position to a top low-cost airline carrier with its competitive advantage that Stelios implemented. Stelios decided to turn easyJet into a company that caters toward a mass of high-volume target with numerous market size. The biggest factor in this decision is the fact that Stelios was able to cost cut measure the airline’s ability to function. First of all, easyJet cut out some operating money by inputting the idea of no in-flight meal given. In return, easyJet actually gained money by charging customers as it sells out foods during in-flight. In addition, Stelios also decided to remove the unnecessary business class seats in which he turned it into a full maximize economic seating instead. This was one of the factors that led the company into its ability to cater toward high masses. The cutting out cost of business seating turned it toward a profitability strategic as easyJet was able to carry more people with just one flight airplane. Stelios was also able to cut cost to as far as choosing Luton as airport because of its lower labor cost as well as airport service fee. However, the biggest competitive advantage that Stelios chose in order to cut cost was the fact that...

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