EasyJet: The 'Easy' Way to Succeed|Business Strategy|Case Study|Case Studies

EasyJet: The 'Easy' Way to Succeed

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Case Details:

Case Code : BSTR057
Case Length : 16 Pages
Period : 1995 - 2003
Organization : EasyJet
Pub Date : 2003
Teaching Note : Available
Countries : Europe
Industry : Aviation

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Operational Model

EasyJet's operational policies were based on keeping costs to a minimum to allow the airline to offer the lowest fares possible. The airline's operational model focused on moving people from point A to point B in the best and cheapest possible way, stripping out all unnecessary costs.

Towards this end, it adopted a number of practices that helped curb wasteful expenses and provided the best possible service within the limits prescribed by cost. Stelios credited a lot of easyJet's success to two strategic imperatives. The first was "sweating the assets", that is making sure the planes were as full as possible and flying as much as possible. His logic was that if one had a fixed asset which cost a lot, it had to work for one. The second was a sophisticated yield management system which could set an infinite number of fares for a given flight, based on the demand and supply position for that flight. The prices for the seats fluctuated depending on the demand for them at a particular time...

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Easyjet's Marketing

Stelios had a proactive approach to marketing. He willingly appeared in the press and participated in the advertising campaigns of easyJet. When he flew on one of his flights he spent time interacting with passengers and trying to obtain feedback. The airline made extensive use of the color orange.

The crew wore orange clothes, the planes and the office building were painted orange, and even the trash bags were orange. The neon orange 'easy' brand represented value for money. Analysts felt that this created a theme park kind of atmosphere, and was quite effective as a branding strategy. EasyJet was positioned as the common man's airline. Stelios' heritage as the scion of a Greek shipping magnate stood in the way of creating the image of economy, but he successfully managed to create that impression. He did away with all the trappings of wealth. He replaced all his status symbols with common man's products. He replaced his Porsche car with a fuel efficient Smart Coupe and his fancy Vacheron Constantin watch with an orange (the color of easyJet) Swatch watch...

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