010-1 Component Case Study Analysis Portfolio (2023 MOD007205 TRI2 D01NON)

Assessment 010 – Component 1                                                    

 

Time Constrained Case Study

 

QUESTION 1:  

Using relevant concepts, prepare a stakeholder analysis for EasyJet Plc. Analyse the extent to which EasyJet harnesses a ‘shared value’ approach to stakeholder management (20 marks). 

 

Stakeholder analysis is an important instrument of businesses such as EasyJet to know and control the multitude of groups which can be affected by or may have an interest in their operations. Through the organization of stakeholders and prioritization, companies are able to efficiently engage with their stakeholders and align their interests with the Company objectives.

Stakeholders	Impact
Customers: EasyJet’s key stakeholders are customers who need low-cost and reliable air travel services. According to research by Silva-White (2023), customer satisfaction and loyalty are very crucial in the airline industry. Therefore, companies such as EasyJet must ensure that they focus on customer service and quality.	Low power / High Interest
Employees: The workforce of EasyJet, which is comprised of pilots, cabin crew, and ground staff, is absolutely necessary for the company’s functioning. Ngwenya and Pelser (2020) argued that employee engagement and satisfaction are directly related to organisational performance and customer satisfaction. These findings emphasise the significance of employee wellness investment and development.	Low Power / Medium Interest
Shareholders: The shareholders give money to EasyJet and in return for the investment they expect a gain. According to the study by Menghwar and Dawood (2021), the idea of shared value puts emphasis on linking business strategies with community needs to generate value for both shareholders and stakeholders. EasyJet must ensure that it satisfies the demands of shareholders without compromising on its societal role.	High Power / Medium Interest
Suppliers: EasyJet relies on vendors for airplanes, fuel, and other operational aspects. Alghababsheh and Gallear (2021) highlighted the role of supplier relationships in providing supply chain with sustainability and efficiency. Partnership with suppliers is a must for EasyJet in order to attain high reliability and cost-effectiveness.	Medium Power / Medium Interest
Regulatory Bodies: Regulatory agencies like the Civil Aviation Authority (CAA) and the International Air Transport Association (IATA) develop regulations and standards that EasyJet must meet. Full adherence to regulations is fundamental for not just the operational independence but also for the passenger safety.	High Power / Low Interest
Local Communities: EasyJet’s flight activities may lead to economic and social effects in the regions where it operates. Communal engagement and the adoption of sustainable tourism practices in the aviation sector are highlighted in a study conducted by Kaitano (2020). EasyJet has to be mindful of the interests of the local communities and mitigate the potential negative impacts of its operations.	Medium Power / Low interest
Competitors: Competitors in the airline industry, including both traditional carriers and low-cost rivals, shape EasyJet’s competitive landscape. Research by Sorvi (2023) on airline competition underscores the need for EasyJet to differentiate itself through cost leadership, service quality, and route network optimisation.	Medium Power / High Interest
Media and Public Opinion: According to Rita, Moro and Cavalcanti (2022), public perception, influenced by media coverage and online discourse, can impact EasyJet’s brand reputation and consumer trust. Managing corporate reputation and stakeholder trust are very the important for the airline industry, particularly during crises or incidents.	Low Power / Medium Interest

Extent of Shared Value Approach

EasyJet demonstrates a commitment to the shared value approach through various initiatives aimed at creating value for both shareholders and stakeholders:

Customer Focus: EasyJet’s focus on providing affordable fares and convenient services aligns with societal demands for accessible air travel (Ambrose and Waguespack, 2021). The company’s emphasis on digital innovation and customer-centricity contributes to customer satisfaction and loyalty.

Employee Welfare: EasyJet invests in employee training, development, and well-being to enhance job satisfaction and performance. The company’s employee engagement initiatives foster a positive work culture and contribute to operational efficiency.

Environmental Sustainability: EasyJet has implemented measures to reduce its environmental footprint, such as investing in fuel-efficient aircraft and carbon offsetting programs (Tiirinki, 2022). The company’s commitment to sustainability aligns with societal expectations for corporate responsibility and environmental stewardship.

Community Engagement: EasyJet engages with local communities through partnerships, sponsorships, and community outreach programs. By supporting initiatives that benefit local residents and promote sustainable tourism, EasyJet enhances its reputation and fosters goodwill.

Regulatory Compliance and Safety: EasyJet prioritises compliance with aviation regulations and safety standards to ensure passenger safety and operational integrity (Rodrigues et al., 2024). The company’s robust safety protocols and risk management practices mitigate regulatory risks and build trust with stakeholders.

Question2:

Examine the resources and capabilities of EasyJet in terms of its ability to respond to current opportunities and threats in the global business environment. (25 marks)

 

In today’s dynamic and competitive global business environment, companies must possess the right combination of resources and capabilities to respond effectively to emerging opportunities and threats. EasyJet, as a prominent player in the airline industry, faces numerous challenges and opportunities shaped by factors such as market trends, regulatory changes, and technological advancements. This analysis will examine EasyJet’s resources and capabilities and evaluate its ability to navigate the current global business landscape.

Resources Assessment

Brand Reputation and Customer Base	The fleets of modern aircraft of EasyJet is an important resource that allows it to provide economical and highly effective air travel services. In line with that, Akmaldinova and Volkovska (2021) stressed the role of fleet management and route optimisation in the airline industry for improving operational effectiveness and profitability. The company’s vast network of itineraries and operational facilities, which include airports and ground services, increases its competitive edge even more.
Brand Reputation and Customer Base	The positive reputation of Easy Jet and its loyal customers are important intangible resources that make Easy Jet a strong competitor. Zia et al. (2021) have demonstrated the effect of brand equity and customer loyalty on revenue growth and increase of market share. Easy Jet’s focus on customer satisfaction and differentiation of the brand has enabled it to retain the position in the market that is intensely competitive.
Cost-Efficient Operations	One of the main reasons why EasyJet can offer low-cost flights to its customers is its low-cost business model which includes point-to-point flights, high aircraft utilization rates, and ancillary revenue streams. In their research Kataria and Saini (2020) refer to cost leadership strategies as being a major success factor for low-cost carriers such as EasyJet, which enables them to drive demand and take a share of the market.
Technological Innovation	EasyJet keeps the technology up-to-date which aids in efficient operations, customer experience enhancement and revenue management. Kumar, Ashraf, and Nadeem (2024) highlight the manner in which technology remodels operation and passenger engagement of airlines, thereby indicating the importance of constant innovation to remain competitive. The digital platforms, mobile apps, and data analytics of the company provides them to personalize services, streamline processes, and gain customer insights.
Human Capital	The Human resource portfolio of EasyJet containing pilots, cabin crew, and ground staff is a source of its operational excellence and service quality. Jashari and Kutllovci (2020) noted that human resource management practices are crucial in the success of both the employees and the organisation as a whole in the air industry. Through its emphasis on recruitment, training, and talent development, the firm ensures that its employees have the right skills and competencies necessary for delivering excellent customer service as well as keeping safety standards high.

Capability Analysis:

 

Cost Leadership:

EasyJet’s cost leadership strategy enables it to undercut competitors’ pricing without sacrificing profits. The company’s cost cutting measures and efficient operation make it appealing to customers who are price conscious. According to Porter (1985) who was doing a study on competitive strategy, cost leadership was an essential element to achieving a stable competitive advantage.

Route Network Optimisation:

Thorough route network optimization of EasyJet helps to discover profitable routes and reduce them operationally. Through its data-oriented approach to route planning and scheduling, the company maximizes revenue and boosts market coverage.

Customer Relationship Management (CRM):

EasyJet’s CRM skills allow it to develop a personalized customer experience that attracts customer loyalty. Zia, Younus, and Mirza (2021) defined Customer Relationship Management (CRM) as the most important tool to increase customer retention and lifetime value. The company is data driven, using customer data and analytics to customize marketing campaigns and service offerings to individual tastes.

 

Supply Chain Management:

EasyJet’s supply chain management capabilities enable it to efficiently procure aircraft, fuel, and other operational resources while minimizing costs and risks. Alghababsheh and Gallear (2021) research on supply chain management stressed the importance of coordination and collaboration in achieving supply chain excellence. The company’s relationships with suppliers and logistics partners contribute to supply chain resilience and agility.

Innovation and Adaptability:

EasyJet’s culture of innovation and adaptability allows it to respond quickly to changing market dynamics and customer preferences. Jashari and Kutllovci (2020) report on disruptive innovation underscores the importance of agility and creativity in driving organisational growth and sustainability. The company continuously evaluates new technologies and business models to stay ahead of competitors.

QUESTION 3:

Analyse competitive pressures within the airline industry and evaluate EasyJet’s competitive market position in light of these pressures. (25 marks)

Competitive Pressures in the Airline Industry

 

Price Competition: There is a fierce price competition in the airline business during which airlines are competing with the others of offering the lowest fares to capture price-conscious customers. Corselli (2023) research revealed that price elasticity of demand affects airline pricing strategies whereby airlines resort to pricing wars to attain the desired market share.

Regulatory Constraints: Regulatory limitations, including the government regulations of routes, airport slots, and safety standards, play a vital role in the problems that airlines face. Ciliberto et al (2021) analysed how regulatory policies affect airline competition and market structure in their study. Abiding by regulations adds to operational costs and limits freedom in route planning and timetabling.

Technological Advancements: The technological breakthroughs such as aircraft design, fuel efficiency and reservation systems pioneer the way for innovation and efficiency in the airline industry. As reported by Agustian et al. (2023), investors who adopt advanced systems achieve a competitive advantage through improved efficiency and customer satisfaction.

Changing Consumer Preferences: The air travellers’ preferences are evolving with convenience, flexibility and personalized experiences being the top priorities (Haque et al., 2021). Airlines that adapt to these changing preferences through offering of ancillary services, loyalty programs, and seamless booking processes stand the chance of gaining a competitive edge.

Evaluation of EasyJet’s Competitive Market Position:

Cost Leadership Strategy:

EasyJet has confirmed itself as a major player in the low-cost carrier segment marked by affordable fares and non-stop services. Maulana et al. (2021) argue that for cost leadership is critical for competitive advantage in the price-sensitive markets. The company’s cost leadership strategy helps it to appeal to price conscious customers and compete favourably against other budget airlines.

Route Network Optimisation:

EasyJet’s route network optimisation facility helps to discover and utilize viable routes and, at the same time, avoid operational inefficiencies. As asserted by Xu, Wandelt and Sun (2024), good route optimisation enables airlines to increase their profitability and market share. The enterprise emphasises on point-to-point routes and secondary airports therefore it increases its competitive advantage and market expansion.

Brand Reputation:

EasyJet has been able to create a solid brand for reliability, affordability, and excellent customer service. In the work done by Sarker, Mohd-Any and Kamarulzaman (2021), it is apparent that the brand equity status in the aviation industry greatly influences customer perceptions and buying decisions. The corporate brand equity ensures customer loyalty and makes it more competitive in strong competition.

Digital Innovation:

Digital innovation has been adopted by EasyJet to better the customer experience and ensure smooth operations. As shown by the study of Ambrose and Waguespack (2021), it is the digital technology that has a transformative effect on airline operations and customer engagement. The mobile app, online booking platform and self-service kiosks enable convenient travel arrangement and management that improve customer experience and loyalty.

Operational Efficiency:

EasyJet’s operational efficiency, such as quick turnarounds and high aircraft utilisation rates, allows it to cut costs and increase revenues. Research by Akmaldinova and Volkovska (2021) identified operational efficiency as a critical success factor in the airline industry. The company’s concentration on lean operations and continuous improvement make its cost and service quality to demonstrate a competitive edge.

In a nutshell, low cost leadership, route network optimization, brand quality, digital innovation and operational efficiency are the core factors of EasyJet’s competitive position in the airline market. In spite of highly competitive environment within the sector, EasyJet’s ability to deliver value to customers and control costs as the topmost priorities of the company allows it to resist challenges and grab the opportunities for the growth and the expansion.

 

QUESTION 4:

Present a set of strategic priorities/recommendations for EasyJet, drawing on the analysis undertaken in questions 1to 3. (20 marks)

 

EasyJet, as a prominent player in the airline industry, must continuously refine its strategies to adapt to evolving market dynamics and maintain its competitive edge. Drawing upon the insights gleaned from the stakeholder analysis, evaluation of resources and capabilities, and assessment of competitive pressures, the following strategic priorities and recommendations are proposed for EasyJet:

Customer-Centric Innovation:

EasyJet should prioritise customer-centric innovation to enhance the overall travel experience and drive customer satisfaction and loyalty. This entails leveraging digital technologies to streamline the booking process, personalise services, and provide seamless travel experiences. Ambrose and Waguespack (2021) reported the importance of customer-centric innovation in gaining a competitive advantage in the airline industry. EasyJet can fully meet travelers’ expectations through mobile apps implementation, online booking platforms, and in-flight entertainment systems.

Sustainable Operations:

In light of the predominant awareness about sustainability, EasyJet needs to come up with sustainable approaches to cut down their carbon footprint and environmental impact. This can be done by buying fuel-efficient planes, introducing alternative aviation fuels, and creating carbon offsetting programs. Ngwenya & Pelser (2020) revealed sustainability as a major factor in the branding and communication for airlines. Through demonstrating its responsibility to the environment, EasyJet can improve its brand image and get the ecological customers.

Route Optimisation and Expansion:

EasyJet need to concentrate on the strengthening of market position through route optimisation as well as strategic expansion in order to take advantage of the latent market opportunities. This would begin by tailoring data analytics to determine neglected routes, improve flight schedules, and raise the productivity of flight route efficiency. Akmaldinova and Volkovska (2021) discovered that route optimization is the main factor for the airline’s higher income and larger market share. Easyjet could benefit from network cooperation with airports and tourism authorities in order to expand its route network and enter new markets.

Employee Engagement and Development:

Hiring motivated and engaged staff opens a door to a grand customer and company success. Ngwenya and Pelser (2020) have pointed out how employee engagement maximizes service quality and successful operational performance in the airline industry. Through employee engagement programs such as training programs, career development opportunities, and recognition schemes, EasyJet will be able to keep employee morale up and thus maintain a high level of employee satisfaction and retention for more information read

Digital Transformation:

With digital technology revolutionizing the aviation sector, EasyJet has to evolve by implementing digital transformation to achieve better process efficiency and customer engagement (Ambrose and Waguespack, 2021). This translates into deploying data analytics, artificial intelligence, and automation to run business processes such as flight scheduling, revenue management, and customer relationship management. Through utilising digital technology, EasyJet can tackle all these challenges and more by optimising operations, minimizing costs, and enhancing customer experience.

Strategic Alliances and Partnerships:

EasyJet should develop strategic partnerships and alliances with other airlines, tourism agencies, and tourism key players to extend its market and upgrade its value proposition. This could be done through codeshare agreements, interline partnerships and joint marketing (Menghwar and Daood, 2021). Through strategic partnerships, EasyJet can enter new markets, improve network connectivity and reinforce its competitive edge.

In a nutshell, by prioritising customer-centric innovation, sustainable operations, route optimisation, employee engagement, digital transformation, and strategic partnerships, EasyJet can strengthen its competitive position and achieve sustainable growth in the dynamic airline industry landscape. By aligning its strategic priorities with the insights gained from stakeholder analysis and competitive assessment, EasyJet can enhance its value proposition, differentiate itself in the market, and maintain its position as a leading player in the airline industry.

References

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Akmaldinova, V.Y. and Volkovska, G.G., 2021. Aircraft Fleet Operation Efficiency: Comparative Analysis. ВЧЕНІ ЗАПИСКИ, p.22021148.

Alghababsheh, M. and Gallear, D., 2021. Socially sustainable supply chain management and suppliers’ social performance: The role of social capital. Journal of Business Ethics, 173(4), pp.855-875.

Ambrose, S. and Waguespack, B., 2021. Fundamentals of airline marketing. Routledge.

Ciliberto, F., Murry, C. and Tamer, E., 2021. Market structure and competition in airline markets. Journal of Political Economy, 129(11), pp.2995-3038.

Corselli, G., 2023. Collusion and Dynamic Pricing-enablers and origins of airlines’ cartels (Doctoral dissertation, Politecnico di Torino).

Haque, I., Rashid, A., Rasheed, R. and Amirah, N.A., 2021. Differentiated services quality and service culture: customers’ preference in air travel. Journal of Tianjin University Science and Technology, 54(07), pp.19-46.

Jashari, A. and Kutllovci, E., 2020. The impact of human resource management practices on organizational performance case study: manufacturing enterprises in Kosovo. Business: Theory and Practice, 21(1), pp.222-229.

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