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Easyjet Case Analysis

580 words - 3 pages

When I started reading the case study on easyJet, the first thing that came to mind was Southwest Airlines, only to find out easyJet modeled itself on the same business plan. EasyJet has a competitive advantage in three areas: efficiency-driven operational model, a strong brand awareness, and maintaining high levels of customer satisfactions.
Stelios (CEO) started offering low price airfares to the masses at 29 pounds, one way. With prices that low, easyJet was already starting to beat the competition. However a focal point was to offer flights for the casual flyer and not just businessmen. By removing business and first class seats, easyJet could accompany more passengers therefore holding more people and creating higher revenue. This is a huge competitive advantage because most companies cater to their businessmen because large companies are constantly ...view middle of the document...

Stelios ideas of cutting corners everywhere else allowed for the company to cut the price of tickets. By taking these risks, easyJet was able to post profitable gains in a competitive market.
Another competitive advantage easyJet has is its emphasis on advertising and increasing brand recognition. EasyJet also went after their competitors openly and showed the public in ways which easyJet was better. With other airlines trying to implement low cost fares and no frills flights, they were not willing to allocate their money on advertising as much as easyJet because they have other charters to pay for. EasyJet was smart enough to find loopholes and create sub charters to gain access to ports they couldn’t fly into. This showed their customers that easyJet would go the extra mile to accommodate all their passenger needs at the same affordable cost.
The final competitive advantage is maintaining high levels of customer satisfaction. Multiple situations arise where Stelios would refund the passengers their money if easyJet didn’t live up to their name. This is a huge advantage for easyJet because other airlines wouldn’t refund their passengers money. Most airlines only allow for a flight change, and even then they charge you with extra fees and cost differences. Because easyJet wants to have top-notch customer service, they hold workshops to train employees to be the best. Another advantage because most companies only perform training in handling job duties. For easyJet, providing great customer service is part of their job description.
All of these competitive advantages are sustainable because easyJet is a dedicated airline for low-fares with no frills. Their entire business plan revolves in offering the lowest prices with the greatest exposure with the best service. While other companies are handling multiple planes, destinations, and prices; they aren’t able to focus on a specific model to run efficiently. Something easyJet has mastered in Europe.

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