Easy Jet Strategy - Ryanair

Easy Jet

Part 1

Easy jet is a good example of no-frill stragedy.

Easy jet is not just persuing a cost-leadership stratigy but it is based on being a no-frills company. There are bigger competitors in its industry such as, RyanAir.

Is easyjet as cost efficient as RyanAir and what would happen if they decide to compet on a head-on basis (so far they havn't). in a sense easy jet is trying to differentiate itsef from Ryanair, i.e. low cost with care and convenence.

In the long run, both a no ftills strategy and a low price strategy can't be prusude withou a low-cost base. They key to build a competitive advantage is to keep costs down, in ways that other competitorts cannot match. Easyjet has tried to do this by using internet sales, quik turnaround times, ticketless travel, no free meals, efficient use of airports, using a young fleet of airplanes, fuel hidgighn, mutiskilled staff and flat organization structure.

These sources of competitive advantage are all linked together in a complex manner to make the organization succuessful.

Part 2

The issue is weather or not BA should imitate Easyjet. Can actual and potencial compititors, seen the success of Easyjet, emitate and overtake them or does easyjet experience, and enterprenennual cultur lead to lasting success. A no-frill strategy doesn't sit well with BA current strategy. It is soubful weather BA can sucessfully imitate Easyjet, unless ther are willing to totally abndon their current buiness model.

Part 3

The sustainability of the no-frills strategy depends on many variables. There are