A recent trend is business goals and strategic planning is established to satisfy company’s long-term requirements. Jackson (1975) claims that planning tried to decide a systematic decision making to influence all the factors in which success or failure would be affected. Also, compared with marketing planning, strategic planning puts more attention on overall and long-term objectives, such as organizational direction, framework, orientation, which need systematically decision. According to Mintzberg (1994), strategic planning is more about strategic programming than strategic thinking. Managers should comprehend the diversity of strategic thinking and planning, focusing more on the process of strategy development hence. And easyJet, who …show more content…
Thus, managers need to identify particular capacity to defeat their opponent or get the leading position in their competition, in other words, to define their competitive advantage. A study by Passemard and Calantone (2000, p.18) shows that accomplishing strategies successfully would enhance the company’s performance by surpassing other current and potential rivals with the method of competitive advantage. And the result indicates the importance to define one’s competitive advantage. For instance, Virgin and easyJet, two of British major airline corporations, the former represents flair and the latter represents value. These are their great definition and competitive advantages in which differing from other English airline companies, and fits one of Porter’s theory very well-three generic competitive strategies, one is differentiation (Porter, 1985a). In addition, cheaper or higher quality products and service prefer to advertise on customers. As most big brands do, their unique products or services will be recognized from target markets, with their global brand awareness. A simple approach to achieve this objective is to build differentiation from others in the same sector, to help customers distinguish products or companies from unique brand feature. Therefore, competitive advantage plays a crucial role in companies long-term planning.
Systematic thoughts for
This report illustrates an in-depth look of easyJet and will also discuss an analytic research that was made to demonstrate aspects of the history of the airline, along with the marketing strategy and brand strategy used and implemented by the low-budget airline. The strengths, weaknesses, opportunities and threats, known as SWOT analysis, will also be illustrated along with the external environment better known as PEST analysis which consists of the political, environmental, social/cultural and technology factors of easyJet. In addition an analysis of the competitive market environment of easyJet will be shown, which includes an overview of easyJet’s main competitors and the nature of business in which they operate
This report will be discussing strategic management to a company in the airline industry. This report will examine a chosen company’s strategic management and outline the stages. Strategic management is analyzing the situation facing the firm, also on the foundation of analysis formulating a strategy and lastly implementing strategy. Strategic management is the identification and the description of strategies that can be used by managers so as to attain better
With the BCG Matric analysis, we can argue that Easy Jet enjoys a viable competitive position because of its actual market growth. However, its prices have been compared with those of rival firms. This has clarified that Easy Jet emphasizes on being a low-cost carrier with no surplus in-flight services. Writers such as Quelch & Deshpande (2004, p. 71) argue that the Boston Consulting Group growth/share matrix has offered an opportunity to establish the market share of Easy Jet and the company's growth rate. In the context of the company's low cost market, it is clear that the market is still are still increasing. In addition, with the current fleet volume of 80 aircrafts, Easy Jet can serve 160 routes across Europe. Industry experts have associated such massive penetration with the rise in numbers of passengers and a relative rise in market share. Consequently, it is clear that the company has become a star. Nevertheless, Easy Jet must expand its market share for it to transform into a source of income after the decline of the market's growth rate. With respect to the company's Boston Consulting Group growth/share matrix analysis, we can claim that the cash flow of Easy Jet from operating activities have declined as well as the annual finances. Nevertheless, the acquiring firm's cash flow statement is the main area of focus (Butler &
Managers generally consider the rivalry among competitors as a major source for deriving strategy. As explained by the Michael Porter it is a narrow view of competition. A set of other parameters should be evaluated, mentioned in article as five competitive forces, along with industry
The essay will firstly introduce the organisation easyJet. Secondly the essay will explain about how easyJet uses its operation strategies and its competitive priorities. Finally the essay will discuss the most important operation decision and explain it further in detail. easyJet is a well known low-cost airline which operates in several European countries and has been founded by serial entrepreneur Sir Stelios Haji-Ioannou in 1995. easyJet undertook intensive research of a United States owned low-cost airline ‘Southwest Airline’. Most of the concepts for easyJet were adopted from Southwest airline; however easyJet added its own touch which reduced operating costs even further. EasyJet was strategically located at London's Luton airport.
Strategic planning can dictate the success of any organization if properly planned as well as the failure of an organization if not implemented as planned. Strategic planning is all about making choices. It is a process designed to support leaders in being intentional about their goals and methods. Simply stated, strategic planning is a management tool, and like any management tool, it is used for one purpose only—to help an organization do a better job. This portion of the strategic plan will explain why an
Differentiation strategies refer to the strategies that are adopted by businesses in a bid to gain competitive advantage in a given industry and over their competitors. Through differentiation, the company’s products or services stand out among other products that are offered by their competitors. Therefore, differentiation in essence refers to a scenario whereby, a company offers products or services which are unique or have features which are unique and which makes them stand out among its competitors. The airline industry is termed as an industry that experiences rapid and volatile changes amidst growing competition among many competitors in the globe. With this in mind, different airlines have to adopt different strategies that are to differentiate them among the many competing airlines in the world. This paper will focus on Southwest Airlines in the discussion of the differentiation strategies that it has adopted. Also, recommendations will be made will be done in reference to Southwest Airlines.
In his article, “The Fall and Rise of Strategic Planning,” Henry Mintzberg (1994) provides his views on the process of strategic planning. He offers that most companies and organizations start a strategic planning process with little understanding of the definition or actual purpose of planning. He tends to admonish much of the conventional understanding concerning strategic planning and proposes his interpretations. He states that “the most successful strategies are visions, not plans” (Mintzberg, 1994, p. 107).
Strategic Planning is one of the most fundamental factors in the success of an organization. This research project will discuss the importance of strategic planning as well as the different components of strategic planning. Many organizations fail to accomplish their goals and tasks due to the lacking of strategic planning. In order for their businesses to be successful, organizations need to be well informed about how the strategic planning process works.
In 1985 Michael Porter surmised that a market can be subjected into different strategies, thus, three variations of competitive advantage were born. The differentiation strategy is the focus for the purpose of this paper. Furthermore, the differentiation strategy in its most exposed form is a strategy that places prominence toward the brand name and advantage is the prestige that follows. This type of angle draws in a specific high-end consumers which in turn sets its corner of the market apart from its competition. Additionally, in this advantage there is a uniqueness perceived by the consumer, industry wide. The differentiation strategy is distinct in attributes indescribable by price but all the same customers are more than willing to pay a premium for the product or service. Firms that are successful in this advantage are fully equipped with a product development team high in creativity and innovation. Additionally, this strategy is only able to be an advantage if a firm is able to access an unlimited amount of research.
There are five business level strategies used to establish a competitive position, Porter identifies these as cost leadership, differentiation, focused cost leadership, focused differentiation and integrated cost leadership/differentiation (Hanson, Ireland & Hoskisson, 2011). Virgin Australia historically used an integrated cost leadership and differentiation strategy in its low cost but varied product position in the market (Thomas, 2011). The use of cost leadership strategies is often seen as the only dependable strategy in the airline industry (Thomas, 2011). However the game change strategic goals of Virgins 2011
To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry. The company should develop a strategic advantage over their competitors’
The Airline market’s success or future lies through marketing because this sector is in competition with other modes of transportation such as bus, high-speed train. Also, the product that airlines serve is a somewhat typical service. Therefore, it has to be differentiated with marketing processes. All in all, marketing is one of the most elements in the airline sector and it is highly used by the companies, and special\specific marketing techniques have been developed to use it in the sector. Also, we will be in aviation sector, therefore doing the marketing research in airline sector will
I. Introduction 1. There are several basic approaches to competing successfully and gaining a competitive advantage, but they all involve giving buyers what they perceive as superior value compared to the offerings of rival sellers. 2. This chapter describes the five basic competitive strategy option for building competitive advantage and delivering superior value to customers – which of the five to
Competitive advantage can be derived by analyzing the organization’s strengths and opportunities not yet tapped into that competitors are already using to their benefit (Ferrell, 2011). Moreover, competitive advantage can also be a direct result of customers’ impression or lack of knowledge about the organization’s products (Bethel, 2015). Realistically, competitive advantage is in the hands of the customers and comes with some stiff practices to entice them to covet the organization’s product (Dawar, 2013).