Strategic Analysis Case Study

Strategic Analysis Casestudy

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Introduction- Strategic Analysis

The strategic analysis is the procedure of analysing the organisational environment and its current position in business marketing to identify the level of effectiveness against relevant competitors in the industry. The following report is a strategic analysis are of EasyJet airline company and its relevant competitors to identify its strategic planning procedures and position in the market among competitors. Bowman's strategy clock will be applied in the report on EasyJet and other competitive organisations of the airline industry to highlight and analyse the organizational aspects and its position on the basis of products and services offered in the market (Weston, 2021).

EasyJet plc. or EasyJet is a multinational British low-cost airline organisation headquartered in Luton, England UK. The organisation was founded in 1995 by Stelios Haji-loannou and the company deals with multiple subsidiary organisations to provide low-cost and customer demanded air travelling services around the world. EasyJet has multiple Business associations with brands like EasyJet UK, EasyJet Switzerland, and EasyJet Europe and it is the second-largest Organisation of the airline industry to provide budgeted air travelling services.

The major competitors of EasyJet Operating in the airline industry at an international level are Ryanair, Wizz Air, JetStar, and Spirit Airlines (Alberto and Minh, 2019). Ryanair is an Airline organisation known for ultra-low-cost career services. The organisation was founded by Tony Ryan in the year 1984 And it provides airline products and services including business pleasure and corporate travelling services with flexible security and baggage management.

Wizz Air Hungary Ltd. was founded in 2003 as a subsidiary company of Wizz Air Holdings plc. and operates in 150 destinations as an ultra-low-cost carrier organisation. Jetstar is an Australian-based airline organisation Founded in 2003 that deals in international air services and consider as a value-based organisation for providing low-cost air services. Spirit Airlines was founded in 1983 headquartered in Miramar Florida US. The organisation deals in ultra-low-cost airline services operating in 28 international destinations of 18 countries around the world.

Bowman’s strategy clock positioning

(Figure 1: Bowmen clock’s Strategic positioning of EasyJet and competitors, 2021)

(Source: By Author, 2021)

Strategic analysis of EasyJet-

The strategic position of EasyJet

The strategic position of EasyJet identified on the bowmen's clock of strategic analysis is under the low prices section of the overall strategy. The current position of EasyJet on bowman's clock defiance is that organization has perceived benefits with low prices of products through a Highly satisfied customer segment with a low-cost structure. The low-price section area of pricing strategy informs the products and services of the organisation offered in the target market at low prices and with similar quality standards awful relevant competitors.

The organization has significant benefits of dealing in low prices of airline services because it developed a unique selling proposition of EasyJet that attracts customers seeking lower prices with appropriate quality (Alberto and Minh, 2019). A low price strategy supports the organisation in providing credible customer services and increasing sales volume while decreasing production costs. The Significant balance between prices and quality of EasyJet airline's products and services supports the organization to maintain sustainable profitability and compete with competitors efficiently.

Product and service range

EasyJet provides a wide range of products including pre-boarding and off-boarding services to increase the satisfaction of customers. The organization provides flight tickets Management with flexible fare along with unlimited date changes free of cost. The airport lounges and baggage management are the most significant products of EasyJet. The Airline provides allocation setting and speedy boarding with upfront seats along with flight tracker and latest travel information with continuous updating features.

The company is mainly known for providing low-cost European airlines services at point-to-point criteria and fulfils the demands of customers by delivering a high-value proposition through low fares with high-quality products and services in leading positions. EasyJet utilise is 3D technology or augmented reality technology to support the clients and customers to access airlines services from remote airports by using an integrated network of the organisation (Vico et al, 2018). The unparalleled network and effective marketing position with the low-cost business model and satisfied customer segment make EasyJet unique in the industry.

No-frills policy

The organisations with a no-frills policy (operate without unnecessary extra charges for unknown decorations or additional comfort provided by the company among their customers). EasyJet also follows a no-frills policy and it offers low fares for airline services by eliminating all types of unnecessary service charges. This is strategy supports EasyJet to maintain 30 to 40% of the overall cost of developing and selling air services over established organisations to achieve commercial success.

The organisation gets benefits of providing no-frills airlines services such as an increase in customer numbers and retention of existing customers (Rodrigues and Rocha, 2019). For example, the no-frill services of EasyJet attract customers to travel from this airline and reduce the impact of competitors that eventually increase customer retention of the company. The organisation utilises is no-frills policy to eliminate non-essential features and extra charges to keep the organizational services available at low prices.

Quality and consistency

The quality of business products and services our one of the important factors that demonstrate the position and performance of an organisation. EasyJet seals in high-quality products and is certified as a four-star airline organisation for providing low-cost airline services for airports as well as on-board products and staff services. The Effective integration in airline products and staff services of EasyJet improved the reputation of the organisation in the industry and supported in achieving better market share.

EasyJet is one of the largest organisations in the European airline industry with a good reputation to provide reliable and cost-effective services. The organization has 14^th position in the world safest airline list that making EasyJet one of the strongest airline organisations in the world (Kallab, 2019). The organisation is very consistent in maintaining an unparalleled Business network that supports the regular increase in market share and effective position in different markets. The company delivers discipline products and services that support sustainable growth and efficient returns for stakeholders.

Strategic analysis of EasyJet's Competitors-

Ryanair

The strategic position of Ryanair on the clock of Bowman is really under the low prices strategic section because the organization utilise is cost leadership and deals in low price products and airline services. The organisation utilises a no-frill value-based pricing strategy with low prices to serve the different requirements of customers and allows switching product-based aspects (Madar, 2018). The Low-price strategy of the organisation boost profitability by unbundling elements of air travelling for passengers and charging reasonably for different elements including luggage preferences and seat selection.

The current pricing strategy and position of Ryanair allow to create an effective perception of quality and develop balance discount services and products by considering the low-price demands of different customer segments at different markets. The low-price strategy supports the organisation to manage consistency against competitors and create an effective start point for new products and services. Ryanair serves good quality airline services and holds a three-star rating. The continuous innovation and significant management of operating costs support organizational consistency and quality management with low cost and low fares (Harvey and Turnbull, 2020). The Effective strategic position and significant business operations of Ryanair made it an efficient competitor of EasyJet within the industry.

Wizz Air

The strategic position of Wizz Air on the bowman's strategy clock is to rely on the hybrid strategy section. Hybrid strategy assist organizations in selling products and services more efficiently than competitors at effective prices and it also improves the availability and accessibility of high-quality products among customer segment. Hybrid pricing strategy increases the effectiveness of competitive advantages in targeted market to offer products that add low cost and develop competitive edge regularly of Wizz Air.

The organisation also follows low frills Busy while providing business products and services that increase its value among customers and satisfies customers positively. The organisation deals in providing a specific product characteristic and maintaining agility with flexibility while maintaining product consistency and service quality (T?oczy?ski, 2019). Wizz Air Is a three-star airline in the low-cost category of the airline industry that has effective performance in onboarding food and beverages arrangement, Seats management and staff services along with cabin cleanliness, etc. The organization always keeps in synchronization with airline trends and manages high-Level services to create diversification and reduce the impact of uncertainty on business. Wizz Air Also utilizes revolutionary strategies to manage financial balance and successful sustainability.

JetStar

The Bowman's clock Forming the is the strategic position of JetStar airlines in the section of the low-price strategy. The organization provides airlines services that offer a low-cost structure for domestic and international Customers and it attracts us a large market share in comparison with other high-cost airline organisations in the competitive business environment at a global level (Lohmann and Spasojevic, 2018). The value proposition of Jetstar is the result of relative Spartan cabs with limited legroom and it results in cheap fares.

The organisation is considered an important part of the high-quality airline industry because it is the fastest-growing airline in the Asia Pacific with effective services and low fares. The organization deals in low-cost careers for both domestic and international people and it provides 75 to 90% reliability on Arrival and departure of flights. The organisation manages consistency by providing high-quality loyalty programs and it also encourages players for becoming repeat customers and books additional flights with fewer charges. Jetstar Airline is a great competitor for EasyJet Because both companies deal in low cost and high-quality air services create pressure to attract customers from the same segment.

Spirit Airlines:

The strategic position offer is Spirit Airlines falls in the low price section in bowman's strategy clock because it provides low prices air services are whether no-frills strategy. Spirit Airlines is highly focused on existing customers and always tries to retain them by providing low prices with additional services without additional charges. The organization is consistently stuck with basic strategies for attracting and retaining customers through incredibly low fares that make the organisation different from other competitors in the industry (Moir and Lohmann, 2018).

The ultra-low-cost Career strategy of Spirit Airlines targets the segment of price-conscious people who are attracted with no-frill service experiences during flying services. The major reason for the efficient consistency of Spirit Airlines is the flexible culture that supports the organisation to overcome uncertainties with effective measurements although it faces escaping from consistent legacy due to several losses because of the COVID-19 pandemic. Spirit Airlines however facing challenges due to the massive outbreak of COVID-19 on air travelling but it is still an important and strong competitor of EasyJet in the industry.

Conclusion-

The strategic analysis by using bowman’s clock develops a better understanding of the organisation position in the market among its competitors in the industry. The report concludes, EasyJet has a strong position within the industry as it has a low price strategy that attracts and retains customers more efficiently with no-frill practices. However, the competitor organisations are also utilising a similar type of pricing strategy and cost structure that has a significant impact on the business procedures and Activities practices of EasyJet. The organizations like Ryanair and Wizz Air have a good share in the market and they also provide high-quality airline services that give strong competition to EasyJet. It is concluded that EasyJet has effective and strong competitive advantages due to its low price marketing strategy that provides the organisation with consistent development and committed customer segment. It is identified that com pitting organizations utilise innovation and creative solutions to make their products and services low cost and highly effective to reduce the negative impacts of competitors within the industry. However, the cost-effective services with the reliable quality of Airline products created a unique Business Network for EasyJet and develop the strongest position in the industry. EasyJet’s investment in innovation and cost structure appropriately to create sustainable growth for the future is reducing the challenges within the industry due to the good performance of competitors.

References-

Alberto, M. and Minh, H., 2019. Easyjet Plc Airlines: take-off to new opportunities (Doctoral dissertation).

Harvey, G. and Turnbull, P., 2020. Ricardo flies Ryanair: Strategic human resource management and competitive advantage in a Single European Aviation Market. Human Resource Management Journal, 30(4), pp.553-565.

Kallab, A., 2019. Airplane technologies and the return to the point-to-point model in commercial aviation.

Lohmann, G. and Spasojevic, B., 2018. Airline business strategy. In The routledge companion to air transport management (pp. 139-153). Routledge.

Madar, A., 2018. RYANAIR IS LOOKING FOR NEW SOLUTIONS TO COPE WITH THE COMPETITION. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 11(2), pp.95-102.

Moir, L. and Lohmann, G., 2018. A quantitative means of comparing competitive advantage among airlines with heterogeneous business models: Analysis of US airlines. Journal of Air Transport Management, 69, pp.72-82.

Rodrigues, M. and Rocha, V., 2019. Easyjet-airline: low cost carriers take over Europe (Doctoral dissertation).

T?oczy?ski, D., 2019. The competitive position of the low cost carrier Wizz Air on the Polish market of air transport services. Transport Economics and Logistics, 76, pp.65-76.

Vico, R.P., 2018. International Tourism: modern trends, models and processes. Sociedade e Território, 30(1), pp.68-93.

Weston, P. and Nnadi, M., 2021. Evaluation of strategic and financial variables of corporate sustainability and ESG policies on corporate finance performance. Journal of Sustainable Finance & Investment, pp.1-17.