Cheat sheet for the Strategic module, given in the third year of the International Hospitality Management study at Stenden University. The cheatsheet is based on easyJet but it gives you an idea of how a cheatsheet works and what kind of theory you need to process. The layout can be adjusted.
eJ- hierarchical str. (layout pyramid) subordinate to someone else in com; CEO Johan Lundgren (1-12-2017)
flat hierarchy (eli. unnec. manag. layers) Mclarity= give safe, good value, point-to-point airline service /
consistent and trustful product in Europe for interesting prices Vseekfuture= Europe’s preferred short-haul
airline, delivering market-leading returns, making travel easy and affordable for all Gstat.future= CSR report
(1) ensure that existing business is efficient in the air and ground (2) minimize environmental impact.
Oexactsteps= (G1) AIR: invest latest technology, efficient use aircraft, direct flights,secondary airports, monitor
performance with other transport options. GR: quick turns, minimal ground equipment use (2x catering),
simple airport infrastructure (1 class service),minimal waste(office,onboard) (G2) Decarbonize and reduce
noise, partnership with Wright Electric (US); electric planes within decade Slongtermdir/sco.= Developing
strong position in Europe’s leading airports. Six strategic pillars to deliver strategy (1) build strong no.1&2
network positions protect current position and invest in scale for stronger position (2)A lean cost advantage
substantial cost savings (£95 million) (3) customer and operational excellence on time depart and arrive (<
disruption costs + > cus. satis.) (4) data and digitalwider dig. platform to support network, customer focus
and operational excellence; lead to customer loyalty and revenue growth (5) grow revenuelistening
passengers, focus market demand, off. value and innovate (6)best peopleinvest in employees; simulator,
training rooms (30), full-sized airbus(HQ; EJ Academy)
R.CA.CO= 30 Sep. Annual Report 2016 R: (1)Capital (Market capitalisation of £4 billion and net cash position of
£213 million, (2)Aircraft (modern Airbus fleet, new fuel efficient A320neo, 257 aircrafts), (3)People (workforce
> 10.000 people), (4)Technology and insight (18.3 m app downloads, sophisticated use of data helps to make
travel easy and affordable), (5)Stakeholders (interacting with no. of stakeholders; customers, suppliers,
regulators and national governments).CA: 1) Operational efficiency (to ensure: right people in right rolesS3)
(2)Marketing/sales force (results in strong brand image) (3)Financial efficiency(R1, lean culture <cost)
(4)Technological advancement (> online tickets, G2). CO: Brand reputation (known for reliable, on-time travel
service which are cheap), Electric aircraft (minimizes environmental impact), Focus on business travellers (high
need for business, account for 1/5 of all airline customers), Low cost model (low cost model ensures cheap
fares because of low overhead costs, efficiently use of aircraft, lean approach to all business areas cost
advantage against competitors).
VRIO= R2: fuel efficient airplanes of value to customers (environmental protection) + can help EJ to respond to
climate change, competitors do not possess the A320neo aircraft, however it is not difficult for competitors to
obtain this type of aircraft (W: ordered 146 A320neo, 2019), organization is appropriately organized to exploit
resources (can buy more) Temporary competitive advantage CA4: Electric airplane is 10% cheaper to buy and
obtain, 50% quieter; lower price for customers is valued, since EJ partners with Wright Electric, they receive
the first delivery of electric planes; rare capability that no competitors possess, inimitability; first hard to
obtain, will get easier, organization is appropriately organized to exploit capability Temporary competitive
advantage.
BM Customer segment; Low cost flyer Business Value propositions; Low-cost flight ticket, extra services (paid)
Channels: www.easyjet.com, social media, in-flight magazine (eJ traveller) Customer relationship: Easyjet
Flight Group Revenue; Ticket sales, charging for extras (ancillary) Key activities; Risk management, Flight
operations, customer service. Key resources: London Luton (HQ, Academy) + (Homogeneous) Fleet (Annual
report 2016 257, Airbus, 8 yr. one type reduces costs). Key partners: Starbucks (coffee during flights), Car
rental companies (Europcar), Hotels (Booking.com), Easy group (holding company controlling family of brands;
easyCar, easyHotel, easyGyms). Cost: (low) operating cost, personnel cost, fleet cost.
Stragroup; similar stra. characteristics, competing on similar bases low cost carriers in EU; maintain low cost
strategy and offer easy travels for low fares. Beech & Chadwick (2006) say easyJet, Ryanair and BmiBaby (last
flight 2012) form a strategic group.
P5F (1)Threat of Entry; low entry barriers high because of high amount of capital needed to start an airline +
qualifications needed to operate (licences, insurance, distribution channels hard to obtain when starting). (2)
Threat of substitutes; medium depends on distance whether there are substitutes. Short distance train,
bus, car. Longer distance no. Electronic communication can be substitutes. (3)Power of buyers; high use of
internet increases bargaining power; compare prices. Customers easily switch between suppliers when another
airline is cheaper. (4)Power of Suppliers; high number suppliers low (Boeing & Airbus), easily change prices,
airlines can’t function without. Long-term agreements so not easy to switch (2013) (5) Competitive rivalry;
highcompanies offer same service, constant renewal to gain competitive advantage, competition stays same
since entry- and leaving barriers are high, high power of buyers increases competition (market share)
ILC Maturity stage; barriers to entry increase(> investing capital stable no. competitors) Product/service
standardized (small no. product/market combinations). Powerful buyers (easily switch between competitors,
internet increases bargaining power). Profitability relies on high market share (strive for market share to
survive). Competitive advantage in terms of costs (low-cost models are created) Johnson, Scholes and
Whittington(2014)
KDforC P; BREXIT (HQ in London, new airline EasyJet Europe HQ Vienna (daughtercomp) to continue flights
between UK and EU). EU expansion towards East (accession negotiations with Serbia, Montenegro and Turkey
for 2018 easy expansion for EasyJet) E; Oil price rises (more costs, barrel price $70 highest since Dec. 2014
MarketWatch Feb. 2017). Globalization (more air travel), Economy recovering from recession (consumer
spending rises, unemployment decreases). S; More spending power (economy recovery higher wages), Older
people (EU population; 2020 ¼ > 60 yr, 2030 1/3). Air travel perception change (earlier; expensive, not for
lower/middle income. Low carriers made it available for larger market). T; Internet (increase buyer power)
Videoconferencing (substitute, business) Looking for fuel alternatives (electric aircraft) E; Climate change
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