Easyjet Case Analysis

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 purchasing tickets on their plane. When planes offer fewer seats, they can’t hold as many people and are not making as much money as possible. By eliminating ticket agents, ticketless entry, with brand new airplanes, easyJet was saving money in those areas and being able to allocate costs elsewhere to provide cheap fares. Other companies rely on agents and tickets to run their airlines effectively and smoothly. Bringing the idea of riding a bus and relating it to flying was definitely a step in the right direction by not offering any “frills” on the flight Since the airfare is so cheap, it only make sense to charge for anything else on board. 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...