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Easy Jet Case Study

Competitive Priority

Competitive priorities are important actions for managers of any company in operation management. Competitive priorities are primary factor when it comes to the need to maintain a company’s production and profitability in a competitive enterprise. According to Porter, there are five dimensions of the competitive strategy which include cost, flexibility, quality, delivery performance and innovation (Porter, 1991). EasyJet has deployed all the five Porter’s competitive priorities into their business to be able to compete effectively. This strategy has led to the success of the company as a low cost company in the airline industry.

In terms of cost, EasyJet has always worked towards low cost strategy while maintaining profits. While maintaining low costs of flight to customers, the company also managed to cut down their operational costs to yield returns at the same time and balance the two factors in order to improve their revenue management. EasyJet uses two main strategies in low cost to compete with other companies. The first strategy is choice of specific airports which are cost effective and absence of catering services. The company chose Luton airport rather than Gatwick which reduced the cost per sit by ten Euros. Also having no catering services reduced the handling costs and as the customers enjoyed low costs, the company was as well yielding profits.

When it comes to quality, EasyJet has done the best possible means to improve on their quality of service while maintaining a flat rate cost. Unlike other flight companies such as inter-continental airline, where the seating arrangement is based on classes, EasyJet decided to have a common seating arrangement with everyone receiving the same value of service and seating. To make passengers get to understand the quality of service offered despite the classification of seats, the company changed the advertisement strategy by having the real picture of the flights.

The delivery and performance of the company has also been a unique one where they decided to have the same cockpit details, same planes (Boeing 747-300) with the same seating arrangement. This a strategic pattern not offered by any other company in the industry. Also in as much as there is no catering services, the company decided to offer flexibility to the customers to have their own snacks and drinks. With this they also decided to offer snacks and drinks at the EasyKiosk with fair prices at extra costs.

The current revenue management of the company reflects a reliable cost effectiveness and profit yield at the same time. EasyJet has a standalone flights with no interconnecting flights which are cost effective in the manner that the planes are in full operation thus there is return on the investment. The ability to have the same seating arrangement and no separation of the classes also helps the company get maximum profit from their flight by utilizing all the seats. Another noticeable uniqueness is the flight crews who are all young and with simple and presentable uniforms. This has enabled the company to save on the cost. The general operational management of the company is indicated by the way they operate without agents hence direct booking which is online this saves on cost of ticket generation and is convenient at the same time to the customers. The choice of the orange color theme is also a strategy that enables the company to be visible to the customers. This is seen from the staff uniform to the head office.

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