In business world, organizations must be smart to identify the areas that can bring commendable returns. The airline industry is a very competitive industry. Since Easyjet airline was a small company it would not have made it if it decided to compete with big companies such as British Airways, which is among the top airline companies.
The leading airlines concentrate on the high-end markets. They offer outstanding services just for the sake of luring customers. These additional services cause the cost of flights to increase, thus eliminating low-income earners.
Easyjet noticed the potential that was in the low market niche and decided to try it. The company had to do things differently by eliminating the services that customers dislike; after all, the low-income earners are not interested in the unnecessary services.
The only thing that matters to them is getting to their destination. However, the flights were to provide basic services without compromising the comfort of passengers. When Easyjet followed this approach, more customers started flowing in because the flights were cheap.
Easyjet was able to cut back on expenses that were incurred during the flights, especially connections flights. This was achievable through short direct flights, and therefore the planes did not make occasional landings for connection purposes.
Likewise, the company reduced operations costs by establishing virtual offices in the Internet – the clients booked their flights via the internet. According to Nielsen this approach requires less personnel to be carried out, hence is essential in trimming the operating costs (1).
Customers embraced the strategy of implementing the Internet platform because it was very convenient, which meant they could book their flights from any location. The Internet platform is an efficient tool of marketing because it has a wide market outreach and a relatively cheap method of marketing.
In addition, using the Internet boosted the company’s reputation because it created an impression that the management was committed towards protecting the environment by using green technology.
Consequently, the selection criteria of airport by Easyjet contributes to its management because the short flights are less demanding because the customers do not need more incentives compared to long flights. The airline collaborates with busy airports because they broaden the chances of success for the company.
This is because the airline has to make many flights to realize the profits that are equivalent to long flights. Establishing flights with airports that have bigger capacities can enable the company to realize its goals.
More flights mean that more revenue will be generated for the company and the operation costs will be kept at bay. From another perspective, busy airports are appropriate because that is where convenience is mostly needed.
The airline maximizes on its potential by aligning itself with airports that offer unlimited opportunities. Furthermore, Easyjet success is because of its choice of airports. This is because it collaborates with airports that are concerned with reducing the costs of operation.
However, the operating margins of Easyjet have been on the decline. Before the company moves to the next financial year, it should evaluate the areas and approaches that have contributed to its success. The company has managed to overcome the challenge brought about by imitation through a clear goal plan. The competitors did not have an action plan and that is why they did not make it.
Easyjet should have a clear vision of future expectations because the airline market is very dynamic. The managers should indentify and address threats in the company’s environment before they engulf the company. Redinius advices that companies like Easyjet should adopt more cost reduction strategies without compromising quality of service because good quality contributes to a bigger market share (20).
The company should solve the issue of increase in fuel and recession should without extending the cost to the customers. While recession might be a threat, it can be transformed into a goldmine. This is because the key players may increase the cost of flights, thus Easyjet should take the opportunity in such situations.
Works Cited
Nielsen, Lisa. Key Business Success Factors. Web.
Redinius, Don. The New Era of Financial Success: Powered by the Reach Methodology. Durham, CT: Strategic Book Group, 2010. Print.