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Esay Jet Case Study

979 words - 4 pages

Meng Sun 860983816
Case study 1-EasyJet
EasyJet, one of Europe’s leading low-cost airlines, has competitive advantages because it adopts an efficiency-driven operational model, creating brand awareness, and maintaining high levels of customer satisfaction. Also, it is important that easyJet was the first mover. Now easyJet is one of the leading low-cost airlines in Europe. All of the competitive advantages are sustainable. As its mission statement writes, “To provide our customer with safe, low-cost, good value, point-to-point air services. To offer a consistent and reliable product at fares appealing to leisure and business markets from our bases to a range of domestic and European ...view middle of the document...

Consumers are attractive by the low price and it is sustainable because it is not likely to copy easyJet for big companies since they have massive fixed expense, also it is very difficult new companies to beat easyJet since easyJet already has a large number of loyal customers. EsayJet uses all kinds of methods to minimize the cost which many big companies cannot. First, there is no meal services or business class on board because these services add extra £24 to each customer. Stelios argues that, “when someone is on a bus, he doesn’t expect any free lunch. I couldn’t see why we cannot educate our customers to expect no frills on board.” Also easyJet avoids computer reservation system and travel agents because Stelios believes those add additional operating costs. And then he offers online discount to encourage Internet sales and the only thing needed for boarding is a sequence of number so there is no need to printout the ticket. In addition, it lowers the cost by choosing Luton Airport because of the lower labor cost. And the company increases the turnaround of the airplanes to increase the utilization of the aircraft. Lastly, easyJet has low profit margin, which brings the consumer the most benefit. Even though it is cheap, safety is put the first by using brand new airplanes and experience pilots.
The second competitive advantage is its good service. EasyJet differentiates from other companies in several ways. First, Stelios flies on his own flights every week and interact with the customers personally so that he can cull information directly from passengers. He also reads and replies to emails from consumers so that he can respond to consumer’s needs quickly. Second, it is very easy to book easyJet air ticket and there is low cost of switching flights, which provide convenience for consumers. Third, easyJet does not have first-class priority boarding. Seats are served on first come first serve basis. It prompts consumers to get on time. Forth, the company uses yield management to avoid...

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