EasyJet has adopted its business model from Southwest Airlines from the United states. It is adapted to the European market trough further cost-cutting measures. Important points in this business model are high aircraft utilization, short times on airport, charging for not needed extras and put much efforts in keeping the operating costs low. The key words in the strategy of Easy jet are “low price and no frill” based on Porter’s generic strategies (2.1.1) (appendix XX). This states for:
• Simple price, simple service
• Unified aircraft and cheaper airports
• Maximize utilization and internet
• Strong branding and charm of entrepreneurship
• Economy of scale and dense networks
Low price and no frill business …show more content…
Figur XX Graphs of the operational performance Ad 4 Commitment of employees
It is widely belief that success for any company is up to its ability to find a valuable strategic position, where the company’s resources, strengths, and rivalry abilities organised and managed to create some forms of competitive advantages. Summarise from the environment analysis of easyJet and business strategy, the Easy Model is right strategic direction for easyJet to get sustainable success and improved in a dynamic and competitive environment. It is worth for investors to put money in. As it reveals in easyJet’s annual report, Earnings per share for the year 2004 were 10.34 pence while in the year of 2003, the earnings were 8.24 pence. There is 25.5% increase. Confidently, the business model of easyJet will continuously success in deregulated European airlines market
Safe and sustainable
We will never compromise our commitment to safety, which is always the first priority for all our people, and we continually strive to improve our sustainability.
Focus on customer
Focused on network development.
We are focusing on improving our routes, slots and bases to build on our leading presence across Europe.